According to the Financial Conduct Authority’s (FCA’s) Financial Lives 2022 Survey, nearly half of UK adults exhibit at least one vulnerable characteristic. But all bank customers are at risk of becoming vulnerable, the FCA says, and this risk is increased by characteristics relating to health, life events, resilience and capability.
In the aftermath of the Covid-19 pandemic and amid the ongoing cost of living crisis and rising interest rates, identifying financial vulnerability is increasingly important, as outlined by the FCA’s new Consumer Duty Act. It could help banks head off problems before they become much bigger, such as customer defaults on a loan, mortgage or credit card.
