Providing support and services for vulnerable customers is a serious matter for financial services providers in consumer markets.
The industry has come a long way in how it manages such support in recent years, but there's always scope for improvement and a need to adapt to meet changing needs. The closure of many retail bank branches has exacerbated the issues that many consumers face, including the elderly, the vulnerable and those not digitally aware. The provision of person-to-person contact, even if it’s remote, is still a key component of effective support.
One aspect that often surprises is the scale of the challenge, and the diversity of needs involved. Scottish Widows, a major pension provider and a part of the Lloyds Banking Group, estimates that approximately 20% of its consumer base can be classified as vulnerable and would likely benefit from additional support.
Types of Vulnerability
There are a wide range of conditions and circumstances that can impact on a consumers’ ability to manage their financial affairs and to cope with change. These can include:
- Physical disabilities
- Vision or hearing impairment
- Health issues (it’s estimated that cancer now affects half of us, at some stage in our life)
- Life events and major changes, such as divorce, job loss, or bereavement
- Other medical and health matters, including mental health challenges
- Lack of financial resilience
- Individual capability, including proficiency in language and communications
It might not be the first that comes to mind, but language and individual capability rank second highest in the consumer vulnerability hierarchy, according to Scottish Widows. ¹
As Graeme Bold, Workplace Pensions Director observes: “Perhaps English isn’t their first language, and they might struggle with navigating things like money and pensions”. ²
That’s not too surprising when considering the statistics on language in the UK.
According to the 2021 census of England and Wales, some 8.9% of usual residents don't speak English as a first language. That’s approximately 5.1 million people. And the number is trending up.
Of course, there’s a great variation in competence levels, from fluent to non-speaking, but when it comes to understanding the complex language used in financial products and services, it's clear that a very considerable number of people would benefit from having essential communications available in their own language, whether online, in print, or on a call.
After all, a lack of understanding can have a serious impact on financial welfare.
Helping Customers in Vulnerable Circumstances
The Financial Conduct Authority states that “We want vulnerable consumers to experience outcomes as good as other consumers and to get consistently fair treatment” and it’s heartening that the industry is following this lead.
Scottish Widows have taken this to heart, and their customer support teams are trained in ‘soft’ skills to help them identify members who display characteristics suggesting vulnerability and speak with them in a way which is supportive, including engaging with interpreters when it’s clear that there is a language barrier.
Their customer contact centres have an English Not First Language support program, and where the necessary language skills aren’t available in-house, they have a partnership with Clear Voice that “offers support in 200+ languages which we can call on in minutes” ²
Positive Outcomes
It’s clear that providing language support at the point of contact has had an immediate effect. Customers that were previously vulnerable (and in some cases alienated) by their language capability are now able to understand clearly what’s being said to them and can make decisions based on knowledge and understanding.
That’s transformative.
As Graeme Bold points out: “What really hits home for me and our colleagues who support customers, is when we hear directly about the positive difference we’re making to their lives.” ²
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