MorganAsh identifies 50% of customers as vulnerable across key sectors
Mortgage firms using MorganAsh reported 36% of customers as vulnerable, while advice firms reported 42%.
MorganAsh’s resilience system found the mean proportion of vulnerable customers across its digital vulnerability management platform is 50%, matching the FCA benchmark.
Mortgage firms using MorganAsh reported 36% of customers as vulnerable, while advice firms reported 42%.
The proportion of very vulnerable customers was lower among mortgage firms at 13%, compared to 22% for advice firms.
The insurance sector reported 48% of customers in vulnerable circumstances.
The debt sector recorded the highest proportion at 99%.
Andrew Gething (pictured), managing director at MorganAsh, said: “With most firms reporting a proportion of vulnerable customers close to the FCA’s benchmarks, it really calls into question those firms that still say they have few to no vulnerable customers.
“In reality, what they have is a significant data problem – they don’t have the robust data required to know who their vulnerable customers are, let alone what challenges those customers face and the outcomes they receive.
“Given the clear requirements set out under Consumer Duty to identify, monitor, support and report on customer vulnerability, this is a clear issue.”
Gething added: “More recently, the FCA has requested firms consider the impact of the Iran war and hence, firms need extensive data to be able to assess these scenarios.
“While firms will have different proportions of vulnerable customers based on their sector, it’s still important to benchmark ourselves against other sectors and established data points like the FCA’s Financial Lives Survey.
“The findings are a great example of the advancements we’re seeing in digital customer vulnerability management, helping firms to improve accuracy and bring real efficiencies to understanding, monitoring and reporting on customer vulnerability.”
He said: “With the right foundations in place, there is the opportunity to unlock the competitive advantage and commercial benefits of being closer to clients, improving and personalising products and services.”
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