Customer Vulnerability Conference Highlights
- Miss the Customer Vulnerability Conference?
Did you miss the PIMFA Customer Vulnerability Conference? Make sure you are up to date and watch the recording now or read the full briefing here.
- What is customer vulnerability?
A vulnerable customer is “someone susceptible to harm due to their personal circumstances, especially if a financial services firm is not acting with appropriate care.”¹ All customers are at risk of becoming vulnerable, but the risk is increased by particular characteristics, which could include poor health, certain life events, low resilience to cope with financial or emotional shocks, or low literacy or numerical capability.
The 2021 FCA guidance, ‘Guidance for firms on the fair treatment of Vulnerable Customers’, sets out expectations for firms, and the Consumer Duty has further emphasised the importance of vulnerability and has created further guidance and opportunities for firms to support customers.
- Key FCA expectations for firms:
- Consider the diverse needs of your customers at every stage of the customer
journey and across the product and service lifecycle. - Have effective systems and processes in place.
- Have effective staff training in place.
- Be proactive. Don’t just wait for customers to tell you about vulnerability.
- Take action. Identification of customers with characteristics of vulnerability isn’t an end in itself.
- Monitor the outcomes experienced by customers in vulnerable circumstances and continually improve
A FRESH PERSPECTIVE ON SUPPORTING CUSTOMER VULNERABILITY
In this podcast, PIMFA’s Director of Government Relations and Policy, David Ostojitsch and Alex Roberts, PIMFA’s Head of Regulatory Policy and Compliance, discuss the importance of addressing customer vulnerability in the financial services sector.
They explore PIMFA’s newly launched ‘Customer Vulnerability Guide’, the role of the FCA, the challenges firms face in identifying customers with vulnerable characteristics, and the significance of creating a supportive culture within organizations. The conversation also highlights the potential of technology in identifying vulnerabilities and provides resources for firms to enhance their practices.
This guide provides support for firms to identify, support and achieve good outcomes for vulnerable customers.