Over half of financial services customers in the UK are now considered vulnerable, a rise of 7% in just one year, according to research from Huntswood, a ResultsCX company.
The survey, carried out by the UK-based consultancy and customer solutions provider, found that 51% of customers met vulnerability criteria in 2024, up from 44% in 2023.
The increase is driven in part by a near doubling in reported mental health conditions, from 10.2% to 19.5%. Financial stress also rose, affecting 16.7% of respondents compared to 14.1% last year.
The study also highlighted a notable rise in customers reporting addiction-related financial distress, up from 0.8% to 3.5%.
In total, 52% of vulnerable customers were experiencing one vulnerability factor, 24% had two, 14% had three, and 10% were facing four or more.
Martin Dodd, chief executive at Huntswood, said: “Our research shows that a higher proportion of the population is vulnerable and may need extra support.
“Part of the increase in awareness comes from financial services firms actively asking customers about their needs, although too many just rely on individuals self-reporting.
“We have seen examples of firms not recording this information, meaning customers must say they are vulnerable multiple times to get proper assistance.
“The right culture and technology, used properly, can be a major help for firms seeking to improve how they treat their vulnerable customers.”
The Financial Conduct Authority defines vulnerability as arising from four drivers: health, life events, resilience and capability.
While awareness is improving, 53% of customers meeting the vulnerability threshold do not identify themselves as such, down from 67% in 2023.
Siddharth Parashar, managing director UK & Europe at ResultsCX, said: “Although awareness is improving, just over half of the vulnerable population still do not see themselves as being vulnerable.
“Being vulnerable is not always a life-changing problem for a customer, nor does it have to affect how they interact with firms or how firms respond to them.
“But the fact remains that many vulnerable customers do need support they are not getting when dealing with financial services companies.
“These firms must urgently assess how they detect and help customers who are vulnerable, especially when so many do not realise they may need extra assistance.”
