The hidden struggles of vulnerable clients in financial services

Just four in ten vulnerable customers say they have disclosed their needs to their financial services provider, new research commissioned by the FCA shows. 

However, those that do open up tend to have better experiences. Three quarters of vulnerable customers who told their firm about their circumstances (74%) said that staff asked the right questions to understand their situation, six in ten (57%) said their firm ‘cared’, and 58% said their firm took action to provide support they needed. 

Anyone can become vulnerable due to health, life events, ability to withstand financial or emotional shocks, or because of poor financial or digital literacy. 

The research found that vulnerable customers are more likely to report a negative experience with financial services firms, such as their bank or insurer, when compared to non-vulnerable customers. 

The FCA issued guidance to help financial services firms support consumers in vulnerable circumstances in 2021 and introduced the Consumer Duty in 2023, which requires firms to deliver good outcomes for all customers, including those in vulnerable circumstances. 

On 7th March 2025, the FCA published a review and good and poor practice examples to further help firms provide the right care consistent with the Consumer Duty. 

How we support vulnerable clients 

Our priority is to provide exceptional care and ensure positive outcomes for all clients, especially those in vulnerable situations. We embraced the Consumer Duty requirements well before their official start in April 2023, demonstrating our dedication to our clients' well-being. 

We've invested time and resources into developing personalised processes for supporting vulnerable clients. Recognising that everyone is unique, we approach each client with empathy and tailor our services to meet their specific needs. Our teams are trained to identify and address these needs, ensuring our interactions are both supportive and effective. 

As highlighted by the FCA's research, being aware of our clients' circumstances is crucial for providing the right support. We encourage open communication so clients feel comfortable sharing their situations. This allows us to offer the necessary assistance to help them make informed financial decisions. 

For more information about how we support vulnerable clients, please reach out to a TPO adviser.

Client Story: How we supported a client with a terminal illness

The information in this article is correct as at 20/03/2025.