The case studies that are synopsised in the financial lives survey highlight some of the complexities companies need to manage. Recognising vulnerability is a key challenge, with a focus on the skills and capability of frontline staff. Recognising this shifts the frontline role to requiring a level of emotional intelligence, sympathy and autonomy to act in the customer’s best interest.
Customers are reluctant to share information on vulnerability, anxious about the potential implications, or in the belief that it has no impact correlated to the service.
Undeniably, the industry requires a PR exercise to make people aware there are, or at least should be, only positive consequences to sharing any issues with advisers.
Person-to-person interaction (face-to-face or phone) remains key and preferred, which puts a focus on digital models. As the case studies show, you can have a profound impact on a customer’s experience.
Overall, the paper provides useful direction, but what is clear is that the FCA now expects the industry to act.
The year 2023 may seem a long time away, but work is required now to be ready to satisfy the regulator.
Jonathan Warren is a consultant at Altus
