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VULNERABLE CUSTOMERS

As part of our commitment to the fair treatment of vulnerable customers we know how important it is to have the relevant resources available to aid conversations and better engage with anyone we consider to be vulnerable. We have produced several resources for you to use with your clients who may be vulnerable which you can find below.

WHAT IS A VULNERABLE CUSTOMER?

According to the FCA, 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.”

There are 4 key drivers which the FCA consider may increase the risk of consumer vulnerability:

  • Health: health conditions or illnesses that affect the ability to carry out day to day tasks.
  • Life events: major life events such as bereavement, job loss or relationship breakdown.
  • Resilience: low ability to withstand emotional or financial 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.

Click on the map diagram to enlarge.

Health Life Events Resilience Capability
Physical disability Retirement Inadequate (outgoings exceed income) or erratic income Low knowledge or confidence in managing finances
Severe or long-term illness Bereavement Over-indebtedness Poor literacy or numeracy skills
Hearing or visual impairment Income Shock Low savings Poor English language skills
Mental health condition or disability Relationship breakdown Low emotional resilience Poor or non-existent digital skills
Addiction Domestic abuse (including economic control) Learning difficulties
Low mental capacity or cognitive disability Caring responsibilities

Other circumstances that affect people’s experience of financial services (eg leaving care, migration or seeking asylum, human trafficking or modern slavery, convictions)

No or low access to help or support

Further information about treating Vulnerable Customers fairly, can be found on the FCA website.

Read more

RECORDING INFORMATION ABOUT VULNERABILITIES

Talking to clients about vulnerability can often be tricky and to record any information about a client you deem to be vulnerable, it is essential you gain their consent. We have produced a handy guide using a selection of the mnemonics we use to aid conversations with your clients. Including alternative ways to talk about being vulnerable, which can make some people feel uncomfortable.

Download guide
Tech icons inside hexagons floating over a blue abstract background.

IMPROVING DIGITAL SKILLS

If you have any clients who you feel could benefit from improving their digital skills, you can introduce them to our Digital Helpline, provided to you via Lloyds Banking Group. The service is free of charge and can be used by anyone. They offer help to set up online banking (whoever you bank with) and even explain how to get access to your GP online too.

Download guide

As an Adviser, you or someone within your firm may wish to brush up on your own digital skills. Look at the Lloyds Bank Academy and Digital Boost program, both are free of charge and easy to use. You will find several resources, tools, and support to improve and expand your digital skills. There is also a charity hub within the Lloyds Bank Academy which if you either work with a non-profit or have a client who does, can also benefit.

Lloyds Bank Academy           Digital Boost

CHARITABLE RESOURCES

The scope of vulnerabilities is vast and there are many charitable organisations who can offer further help, education, and specific resources. We have compiled a selection of the most useful resources for you and to share with your clients where relevant.

Download guide
Close up image of man pointing at a computer screen with a woman sitting next to him looking at the screen.
Man standing looking at a tablet with holographic charts and graphs floating in front of him.

FINANCIAL ABUSE

Financial abuse is when someone uses your money or property without your consent. Anyone can be the subject of financial abuse, from the vulnerable, elderly, or under-informed to the successful, wealthy, and financially literate, both men and women. It can cause extreme distress, hardship and – in some cases – a threat to personal safety.

We have created a short guide for you to use as food for thought, in your firm and a flyer to display in your office for clients to see. It may just help someone in need.

There are numerous courses available for further training on this sensitive subject.

Read the guide           View the flyer

CARDS FOR HUMANITY

A practical tool for inclusive design – use these digital cards to help you think about how you would meet a vulnerable client’s needs.

Visit Cards for Humanity