Two and a half years on: How have Wealth Management firms responded to the Consumer Duty
MoreCall: 0845 139 4444
Email: hello@square4.com
Call: 0845 139 4444
Email: hello@square4.com
Every organisation must develop a strategy to identify and understand vulnerable customers.
This involves implementing processes tailored to customers' needs and providing employees with the tools to manage customer relationships with sensitivity and emotional intelligence.
How Square 4 Can Help
Square 4 supports organisations in recognising and supporting the needs of vulnerable customers. This includes conducting customer and agent observations and customer journey mapping, through to analysing customer data, and pinpointing pain points and opportunities for improvement.
After identifying these needs and challenges, our regulatory consultants collaborate with clients to create tailored strategies and solutions. This may involve developing new products or services, redesigning existing customer touchpoints, implementing new communication channels, or tailored training to facilitate easier access to support and assistance for vulnerable customers.
Our support also takes into account the latest regulatory expectations, including the outcomes which firms need to achieve under the Consumer Duty.
Service Benefits
Customer & Commercial Benefits
We will not only bring our extensive experience and expertise to build out your approach to supporting customers in vulnerable circumstances, but we can also look at the broader operating model to ensure a joined-up approach across all business lines, ultimately enabling consistency of good outcomes and unlocking the additional potential business benefits of supporting customers in need.
We frequently produce blogs and white papers on this very topic. Please have a look at our insights page for our latest thinking and thought leadership on this critical issue.
Q. What additional benefits can supporting customers in vulnerable circumstances bring?
A. Supporting vulnerable customers is not only a regulatory obligation but also provides a business opportunity that offers numerous benefits for both customers and the organisation. By adapting services and support to meet the unique needs of vulnerable customers, businesses can increase customer satisfaction, boost sales and revenue, enhance their reputation, comply with regulations, and showcase their commitment to social responsibility. Additionally, prioritising the needs of vulnerable customers can lead to improved employee satisfaction and motivation.
Q. What are the key categories for vulnerability?
A. The FCA identifies the following four key drivers of vulnerability.
Health – conditions or illnesses that affect the ability to carry out day-to-day tasks
Life events – such as bereavement, job loss or relationship breakdown
Resilience – low ability to withstand financial or emotional shocks
Capability – low knowledge of financial matters or low confidence in managing money (financial capability). Low capability in other relevant areas such as literacy, or digital skills.
Q. What is the definition of a vulnerable customer?
A. The FCA have stated that “a vulnerable customer is someone who, due to their personal circumstances, is especially susceptible to harm, particularly when a firm is not acting with appropriate levels of care.” Recent surveys suggest that 50% of the population could be deemed potentially vulnerable (as against the FCA’s criteria).
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