The circumstances we’ve faced, not only in this country but also globally, over recent years can seem almost unreal when we take a moment to look back.
From the Covid pandemic to the current cost-of-living crisis, these truly challenging times show no sign of reprieve for many as we move into 2023.
Such challenges have unfortunately led to an increase in the amount of consumers with characteristics of vulnerability – with over one million more customers meeting the criteria than two years earlier. The Financial Lives 2022 survey showed 47% of UK adults had one or more of the characteristics in May 2022 likely due to an increase in the amount of UK adults with low financial resilience.
And in real terms, the cost-of-living crisis has left many households facing mounting bills, increasing food prices and soaring energy costs– which has only exacerbated the strain on peoples’ purse strings and left many facing financial hardship.
So, it’s clear to see why the FCA’s Consumer Duty is placing such emphasis on providing good outcomes for customers and protecting those that are most vulnerable.
Effective evidencing with AI technologies
Having a robust process in place to identify which of your consumers show signs of vulnerability – bearing in mind that this can happen to anyone at any time throughout their customer journey – has never been more important.
But how can firms effectively demonstrate this and evidence fair treatment of vulnerable customers? Well, the good news is the FCA has already cited one solution in a recent speech: by embracing the use of AI.
Quality Assurance teams can implement RegTech to great effect when addressing the challenges of vulnerability.
New feature to address vulnerability challenges
Recordsure’s unique ConversationReviewAI product – founded on intelligent speech analytics – now offers a new innovative feature that aligns with your own internal vulnerability QA policies and processes. Combining speech analytics and machine learning with the latest technology, you can apply a consistent approach to vulnerability identification and assessment and revolutionise your firm’s support for vulnerable customers.
Under the Consumer Duty, the FCA will increasingly be asking for data focused on consumer outcomes with the fair treatment of vulnerable customers high on their checklist – so firms will need to maximise the oversight of all their customer interactions, with a particular focus on how they are assessing vulnerability.