“Regulated industries must redefine vulnerability”

Davies, the leading specialist professional services and technology business serving insurance and highly regulated markets, has used its second annual Vulnerable Customer Summit to highlight the growing ‘digital divide’ and the importance of financial services firms supporting vulnerable customers

 
While firms typically tend to focus on financial vulnerability, Davies is urging the industry leaders to extend their understanding of different forms of vulnerability to include areas such as disability and challenges related to communication and numeracy, for example.

The use of AI in the customer experience transition has left a large segment of consumers behind, with statistics on the ‘digital divide’ suggesting that c.10 million people in the UK lack basic digital skills, including those with disabilities and those who might not be able to interact with an agent or fully navigate a website due to language barriers.

As well as creating challenges for some customers, technology is also providing part of the solution. The use of technologies such as generative AI for image assistance, machine learning for website accessibility evaluation and text-to-speech summarisation can all be used as part of a vulnerable customer strategy.

Following the FCA’s Consumer Duty deadline earlier this year, setting high standards of consumer protection is at the forefront of insurance, financial services and other highly regulated firms’ activities, as they embed the Duty to deliver good outcomes for all customers.

As well as broadening the definition of vulnerability, discussion also covered the importance of organisations taking a ‘joined-up’ approach to identifying and serving vulnerable customers. This is important both company-wide – to ensure that different departments within a firm are co-ordinated, and also sector-wide – to ensure best practice is shared between organisations. Attendees noted that firms need to ‘walk in their customers shoes’ in order to avoid inflicting their own structures and terminology on consumers and potentially causing confusion or disengagement. Different strategies for identifying vulnerable customers were a key discussion point, including the importance of a proactive approach, the use of data, how to categorise vulnerable customers and the importance of training frontline staff.
 

Michael Anderson, VP – Client Management, Davies said: “As someone with an elderly, vulnerable parent, I have seen first-hand the struggles caused by companies not adopting strategies that cater to vulnerable customers. Vulnerability comes in all forms and extends to a significant proportion of the population at some point. It is not always permanent, but life events can make anyone vulnerable. It is vital that companies act now to ensure that they are properly serving these customers with inclusive strategies, not only to protect themselves from sanctions but to make a real difference to the everyday lives of our most vulnerable citizens.

“To that end, although digital accessibility can be improved with innovations, organisations should employ a ‘no wrong door’ policy – which can be digital first but not digital only, meaning that customers can choose more traditional routes if they prefer.”

“Our continued belief is that understanding what needs to be done to support Vulnerability should not be a tick box exercise. The organisation culturally has to want to better support vulnerable customers and in so doing, you’ll do right by all your customers”
 
Mike Leacock, CEO, Plain Numbers said: “Numerical vulnerability is incredibly prevalent in our society; almost half of adults have the numeracy skills of a primary school child. This means that what some financial organisations consider to be standard communications – such as a statement or account summary – has significant potential to confuse consumers and cause disengagement and anxiety.

“Consumer duty gives us an opportunity to rethink how we communicate with customers on a daily basis. But this is no small feat and requires cooperation across the financial services sector to share best practice and continue to work to deliver good outcomes for all customers.”
 

About the event

 
The Vulnerable Customer Summit was held on Thursday 26 September at Gaucho, City of London and explored the critical issues of communication and accessibility faced by vulnerable customers.

As well as hearing from the panel of experts, attendees had the chance to experience vulnerabilities first-hand through interactive sessions that leverage new technologies, and heard directly from vulnerable customers about their experiences, challenges, and the support that makes a difference in their lives.
 
The speakers for the event were:
 

• Michael Anderson, VP Client Management, Davies
• Andrew Gething, CEO, Morgan Ash
• Mike Leacock, CEO, Plain Numbers
• David Grayson, Director & Head of User Experience Research, Fluent Interactive
• Neil Chitre, Senior Consultant & Program Lead, Davies
• Duncan McCombie, CEO, YES Energy