We recently held another Community Day for our clients, partners and bezzies to network, learn and future-gaze together. We had a packed agenda for a packed room, and guest speakers from some fantastic organisations like MALG, Google and Trussell.

These events are our opportunity to give a little extra back to our customers - we try to make sure that every session justifies the investment of staff being taken out of their organisations for a day. So while we do talk about the future of Flexys’ software, our priority is putting on an event which provides ideas and practical guidance that our customers can apply immediately.

This time, our focus was on vulnerability. We had an insightful session from Trussell which set the scene very well for our panel session, which is summarised below.

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Identifying and supporting vulnerable customers

Panel session summary

The panel session, 'Identifying and Supporting Vulnerable Customers,' chaired by our CEO James, brought together Savannah Price (CEO, Serene), Manu Peleteiro (Founder, Inbest), and Jason Herbert (Financial Inclusion Lead, Trussell) to discuss the evolving landscape of customer vulnerability and how technology and empathetic approaches can provide effective support.

Broadening the definition of vulnerability

The discussion highlighted that vulnerability extends beyond purely financial difficulties. Jason (Trussell) emphasised that individuals in collections environments are often guarded and may not immediately see organisations as trusted support. Hidden disabilities and mental health issues can significantly hinder a person's ability to navigate stressful financial situations. The panel also noted that being in a collections environment itself signifies an underlying issue.

The impact of financial hardship on cognitive capacity

Manu (Inbest) and Jason both underscored the debilitating effect of financial hardship on mental capacity, with Jason citing research suggesting it's equivalent to a significant drop in IQ points. This emphasises the need for simplified, accessible support.

Challenges in identification and disclosure

Savannah (Serene) highlighted that less than 11% of customers in vulnerable circumstances proactively seek help. This necessitates tools that empower agents to identify vulnerabilities and leverage transactional data to understand customer context. A significant barrier to disclosure is the fear of negative consequences or discrimination from lenders.

Building trust and proactive support

The panellists agreed that trust is paramount. Building trust involves clear communication from the outset of a customer relationship about available support. Rather than reacting to problems, organisations should proactively offer assistance, making customers aware of support mechanisms without making them feel singled out. Personalisation of support and timely interventions (e.g., around seasonal expenses like childcare or school uniforms) were highlighted as effective strategies.

Beyond financial solutions: addressing root causes

Savannah stressed the importance of addressing the non-financial factors contributing to financial vulnerability. This includes offering signposting to services like counselling or administrative support for life events such as bereavement, thereby reducing the cognitive burden on individuals.

Technology as an enabler

Technology can play a crucial role in identifying potential vulnerabilities, forecasting financial resilience, and connecting customers with appropriate support within an ecosystem of services. Digital channels and data analysis are key to optimising these journeys.

Regulation and shifting narratives

While acknowledging that regulation provides guidance rather than a strict playbook, the panel generally praised UK regulators for fostering a good starting point compared to other geographies. Savannah advocated for a narrative shift: recognising that vulnerability is the norm (affecting one in two customers) rather than the exception, and designing services with this in mind leads to better outcomes for everyone.

Empowering customers and societal challenges

The panel emphasised empowering customers to access support, ensuring that information is readily available and understandable. There was also a recognition that while financial services organisations play a role, broader societal challenges require wider solutions beyond the remit of any single company.

The changing face of vulnerability

Jason noted a worrying trend of increasing numbers of 'in-work' individuals struggling to make ends meet and seeking emergency food support. This reflects the complex interplay of factors like the cost of living crisis, impacting a broader demographic.

Conclusion: it's complicated!

The session highlighted the multifaceted nature of customer vulnerability, emphasising the need for empathetic, proactive, and technology-enabled approaches that prioritise building trust, addressing root causes, and empowering customers to access the support they need.

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We run these sessions at least twice a year, so are already planning the next - if you would like to attend a future event, please get in touch. We look forward to seeing how these events inspire action and innovation across our customer base. Stay tuned for updates on future events!

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