Just three in 10 (29%) vulnerable customers said the organisations they deal with knew of their circumstances, new research from Huntswood has found.
More than two fifths (42%) of vulnerable customers said their firm was unaware of their need for support and a further 29% said they were unsure if the firm was aware or not of their situation.
The study by the consultancy group across a wide range of sectors found that 51% of adults are classified as vulnerable compared to 44% in 2023. The rise is largely due to a near-doubling in cases of mental health conditions amongst consumers and the fact that a greater number of those also said they felt financially stressed in 2024 than in 2023.
Furthermore, the survey found a large percentage (53%) of individuals are still unaware they are vulnerable.
According to Huntswood, the customer experience outcome for firms not providing vulnerable customers with the support they need is significant. The research found that vulnerable customers whose provider was aware of their vulnerability but whose needs went unacknowledged resulted in 82% saying they were left feeling unsatisfied.
This contrasts with just 18% of dissatisfied customers whose firm knew about their vulnerability and had acknowledged it in their dealings with the client.
However, when comparing the progress firms are making in terms of how they treat their vulnerable customers compared with 12 months ago, the study showed some improvement. There has been a positive shift in at-risk customers’ views on whether their financial services provider was doing enough to help them given their challenging circumstances, which was up from 28% in 2023 to 40% in 2024.
Martin Dodd, CEO of Huntswood, commented: “Customer vulnerability is not a niche issue – it’s a widespread and evolving challenge. Firms must be able to identify their clients’ vulnerability with precision, empathy and speed. Vulnerability identification doesn’t necessarily require getting new information. Technology can and should play a critical role in achieving this. But data alone isn’t enough, it must be paired with good quality front-line staff training.”
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