"Identifying those within its remit and ensuring the right systems and processes are in place to guarantee parity of experience can be difficult."
Vulnerability characteristics are increasingly common – FCA findings show that 53% of adults have one of the characteristics; an increase of 3 million in less than a year. Although the term vulnerable conjures images of the old or infirm, its remit is much broader as it refers to someone who, due to personal circumstance could be susceptible to harm. This might be in relation to health, mental health issues, low resilience, poor literacy or numeracy or instability in their home lives. Vulnerability can be a transient state and the FCA acknowledges it is a spectrum of risk. As such, identifying those within its remit and ensuring the right systems and processes are in place to guarantee parity of experience can be difficult.
Here I explain six ways to ensure the fair treatment of vulnerable customers:
1. Active listening – Customer conversations are rich in data and insights. Reviewing past conversations with known vulnerable customers can help you to spot other vulnerable clients more easily. Use phone or live chat transcripts, notes from in person meetings, or even social media to do this. Do similar themes crop up in their conversations? Are there certain words they’re more likely to use? Do they highlight where extra support is needed? Examining the semantics of interactions might seem onerous – but it can help to meet the needs of current and future vulnerable customers by shaping and improving call handling scripts, new product development, sales processes and customer care activities.
2. Informed staff – The data collected from active listening must be used to educate and support staff who work on the frontline supporting vulnerable clients. The Right Mortgage and Protection Network has recently set up a vulnerability hub to raise awareness among its advisers and it’s a great example of how vulnerability should be supported. Their hub features resources compiled by inhouse ‘vulnerability champions’ to educate and equip staff. It includes a vulnerability checklist to help spot customers in need of help, and other sales aids. It also outlines where staff can get help if they too need support.
3. The human touch – Don’t underestimate the need for empathy. In a world of increasing automation, talking to a person can be a real comfort and point of difference. The human touch can be amplified for the better with technology too. Linking CRM systems to digital switchboard systems and call handling services, as well as offering live chat rather than chatbot services, allow for a more personal client experience. With CRM, it can make it easier for call handlers to ascertain if the customer is already considered vulnerable (and therefore, how that interaction should be managed or directed) and to record useful customer insights there and then. Live chat can work in the same way, bringing a real-time human touch to even the most digital experience.
4. Make difference the norm - Accessibility and flexibility are important parts of addressing vulnerability and catering for different needs. Not everyone wants to get in touch 9-5, not everyone can make sense of complex financial documents and not everyone can make decisions quickly. Make sure customer communication is varied by using a variety of channels 247.
5. Encourage and educate – Financial customers are not experts – in fact almost half of people surveyed by investment app Freetrade couldn’t answer basic questions about personal finance. This highlights the need to help customers to improve their knowledge; a process which requires making information easier to understand and digest.
This can be through blogs, how-to videos, charitable partnerships and marketing campaigns, but should also include interactive tools such as instant messaging services like live chat. The opportunity to ask questions in real-time is valuable for vulnerable customers. Our experience tells us that people are more willing to share detail about their personal circumstances and to ask questions they might otherwise deem ‘too silly to ask’ via live chat. Well-timed live chat pop-ups used strategically across a site such as on different product and resources pages, can help to identify vulnerable customers, answer their questions and signpost them to useful information and extra support.
6. Build in time and resource – Vulnerable customers may need longer to make decisions. As such, it’s important that brokers and lenders have the means to build patience and time into their practices – right from how the initial enquiry call is handled, to completing forms and applying for a mortgage. This might require longer appointments, more frequent appointments, access to easy to understand sales information, additional support via a helpline and/or involvement with other departments and professionals to ensure appropriate safeguarding.
The conversation around vulnerability has never been more relevant and the FCA has made it clear the industry can and must do more. Ensuring parity of experience for all customers requires lenders and brokers to really understand what vulnerability means and how it presents itself in their customers. A greater focus on listening and investing in communication will help to improve this picture vastly – as it will unlock the insights needed to shape and improve every aspect of lending – from how products are developed, enquiries are managed, customer care is provided and after sales support is delivered.
