Insights
FCA update: supporting vulnerable customers and how firms need to improve
The Financial Conduct Authority (FCA) has today released an important update on firms’ treatment of customers in vulnerable circumstances. This latest review highlights both positive progress and areas that still need improvement, reinforcing the critical role that firms play in ensuring fair outcomes for all customers.
Key findings from the FCA’s review
The FCA’s update indicates that many firms have taken positive steps in supporting vulnerable customers. Some key takeaways include:
- Enhanced support measures – Many firms have made significant progress in embedding vulnerability considerations into their processes and providing improved support.
- Consumer Duty impact – The introduction of the Consumer Duty has driven a renewed focus on delivering good customer outcomes, particularly for those in vulnerable circumstances.
- Areas for improvement – Despite progress, firms need to enhance product and service design and improve outcomes monitoring to ensure consistency.
- Financial Lives survey insights – The FCA’s data suggests that, despite firm-level improvements, consumers with multiple characteristics of vulnerability may not consistently receive the same quality of service as other consumers.
In fact, 44% of customers in vulnerable circumstances reported a negative experience with a financial services firm compared to 33% of customers not in vulnerable circumstances.
- External factors – Challenges such as the rising cost of living and the lasting effects of COVID-19 may have influenced these findings.
So with that in mind, what shouold you be focusing on?
Next steps for firms
To align with the FCA’s expectations and ensure fair outcomes for vulnerable customers, firms should:
- Enhance product and service design – Ensure offerings are tailored to meet the diverse needs of vulnerable customers.
- Improve outcomes monitoring – Implement effective measurement systems to track and improve customer outcomes.
- Prioritize agent training – Equip employees with the skills and knowledge to identify and support vulnerable customers effectively.
How evaluagent can help
At evaluagent, we support firms in meeting FCA requirements through robust quality assurance, agent training, and compliance monitoring.
Our solutions help you to monitor and evaluate customer interactions for vulnerability indicators, provide targeted coaching and training to frontline teams, and deliver data-driven insights to continuously improve customer outcomes.
And there’s one more thing that can really help you start making a difference for vulnerable customers…
Leveraging predictive xMetrics for better customer outcomes
One of the biggest challenges in ensuring fair treatment of vulnerable customers is effective outcomes monitoring. This is where evaluagent’s predictive xMetrics can make a real difference.
xMetrics leverages AI and machine learning to analyze Voice of the Customer (VoC) data, providing firms with predictive insights into customer experiences. Key benefits include:
- Proactive identification of vulnerable customers – xMetrics detects patterns that indicate potential vulnerability, allowing firms to intervene early.
- Automated compliance monitoring – Ensures interactions align with FCA expectations and Consumer Duty requirements.
- Enhanced customer insights – Provides a deeper understanding of customer sentiment and needs, driving better decision-making.
For more details on how xMetrics can transform your customer experience monitoring, take a look at our in-depth guide: Introducing Predictive xMetrics: the Voice of your Customer has never been clearer.
What now?
The FCA’s latest findings highlight the progress firms have made – but there’s still room for improvement when it comes to supporting vulnerable customers. By leveraging solutions like evaluagent’s quality intelligence platform and predictive xMetrics, you can enhance compliance, improve customer outcomes, and build trust.
By taking proactive steps and leveraging the right tools, firms can ensure that all customers, including those in vulnerable circumstances, receive the support and fair treatment they deserve.
Read the FCA review, or take a look at our Product Tours to see evaluagent in action.
