The Financial Conduct Authority has published its findings following a comprehensive review of how banks and buildings societies, as well as other firms in the financial services sector, treat those customers who are identified as being “in vulnerable circumstances”.
In particular, the review focused on how retail banks and building societies dealt with bereaved customers and Powers of Attorney, looking at the outcomes achieved and considering specific cases, governance, management information, and staff training.
The Consumer Duty
The FCA’s Consumer Duty, introduced in 2023, requires financial firms and institutions to deliver good outcomes for all customers, including those in vulnerable circumstances, giving customers confidence in engaging with financial services.
The FCA found in its review that, although not universal, firms had taken some steps to improve how they treated customers in vulnerable circumstances, and that there was evidence of good practice and positive impact since the introduction of the Duty. There was, however, more to do across the board.
Evidence of good practice
The review highlights aspects of service delivered well by providers, including:
- Clear policies and procedures relating to vulnerable customers that are accessible to staff
- Specific processes to ensure that good customer service was delivered in complex cases
- Systems have been developed which enable customers to disclose their needs, details of which were centralised to avoid the need for repetition
- Proactive identification of those potentially at risk of being in vulnerable circumstances
- Effective training materials setting out how staff should support customers in vulnerable circumstances, in particular addressing how to adapt to the customer’s needs and how to communicate with empathy
- Use of artificial intelligence to highlight potential risk of a customer being in vulnerable circumstances
- Adapting bereavement and Power of Attorney customer journeys so they are straightforward and flexible
- Dedicated bereavement teams and dedicated phone lines for Power of Attorney queries were examples of good practice
Areas for improvement
The review also indicates areas where the industry could take steps to improve its service to customers in vulnerable circumstances, including:
- Uncertainty amongst staff about actions to be taken in an emergency
- Lack of confidence amongst staff in how to deal with processes and approaches required
- Length of time taken for some customers to be able to access funds due to safeguarding requirements, and a need to find balance in this regard
- More active identification of customers being in, or at risk of being in, vulnerable circumstances, was required
- Inconsistency amongst staff in the use of systems to record customer needs, such as failure to check systems or to respond to information stated
- Inconsistency amongst staff in the following of processes and procedures, rendering them ineffective
- Failure to recognise and respond to customers in distress or upset, negatively impacting on customer confidence
- A failure to follow up with additional training or other checks after errors amongst staff had been identified, and a need to maintain regular feedback loops for continued improvement
- A need for more ‘joined-up’ customer journeys that progress customer cases more efficiently
This insightful review gives a good indication as to how the financial services sector has responded to the Consumer Duty, and the work that’s still needed to improve experiences for bereaved and Power of Attorney customers.
Read the full FCA review & findings
Professional bereavement training for better customer experiences
Professional bereavement training by the National Bereavement Service empowers teams to communicate better with bereaved people.
Giving colleagues the tools they need to navigate the emotional and practical aspects of bereavement, to have better conversations, and to support bereaved people with sensitivity, empathy and professionalism, CPD-accredited bereavement training from the NBS’ experienced facilitators takes your organisation’s customer and client care, and employee wellbeing, strategies to the next level.
How can bereavement training improve our customer experiences?
Build a stronger organisation that’s recognised for customer care:
- More compassionate & professional conversations
- Better outcomes & reduced stress at times of crisis
How will our people benefit from professional bereavement training?
Establish a strong, open and resilient internal culture that attracts and retains your best people:
- Greater emotional resilience & confidence
- Enhanced engagement & staff retention
- Managers equipped to support bereaved team members
Professional bereavement training by the NBS is structured entirely around your organisation and the demands of the financial services sector.
Beginning with our core module, you may then choose to embed and enhance your team’s training through the addition of sector-specific sessions that are designed to help you meet the challenges unique to you.
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Book tailored professional bereavement training for your organisation with the National Bereavement Service
Do your people, managers, service providers or volunteers know how to:
- Communicate & have a conversation with a bereaved person?
- Give practical & appropriate support to bereaved colleagues, employees or customers?
- Understand the emotional impact of bereavement?
Professional bereavement training from the NBS’s experienced facilitators helps your organisation to have better conversations and to support bereaved people more effectively and sensitively, with invaluable guidance at what can be an extremely challenging time.
Providing access to practical and emotional understanding, support and new skills, bereavement training brings greater confidence and lasting positive impact for client organisations, their people and customers.
Find out more about bereavement training services from NBS
Call 0800 024 6121 or email info@theNBS.org
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H2: Trusted legal support for your people by Adroit Legal Services
Established in 2015, Adroit connects your people and your customer base to quality-assured, affordable and accessible legal services from trusted and experienced experts.
Legal specialists throughout the UK are tried and tested, delivering honest advice whatever stage of life you’re at to protect your interests, family and wellbeing.
Adroit’s panel of advisors, including estate planning and LPA specialists, offers a free initial consultation and discounted rates to make legal services accessible to everyone that’s important to your organisation.
Contact Adroit Legal Services to find out how we help our clients to protect their peoples’ wellbeing with access to quality-assured, great value legal services.
