The Financial Conduct Authority is pushing firms to take greater care when dealing with vulnerable customers. This is to ensure that vulnerable customers are not exploited, and are given additional support to make financial decisions, particularly when those choices have long-term consequences.
Vulnerable customers may not have the capacity to see through sales tactics or to fully understand all of the implications of decisions that can have wide-ranging and long-lasting impacts on their finances. The essential nature of financial services (living in the modern world is difficult without access to a bank account) means that vulnerable customers must be protected to ensure they do not become excluded from these essential services – either through an overt ban or through the indirect barriers created by complexity or technology.
Tags: finance • management