According to the Financial Conduct Authority (FCA), nearly half of UK adults (49%) were identified as vulnerable in 2024.
While the FCA urges financial institutions to improve service delivery for these customers, it’s important to recognise that “vulnerable” is not a single, uniform category. The challenges people face vary greatly depending on the specific characteristics of vulnerability they live with, and when these characteristics overlap, the impact can be significantly more severe.
Our extensive work with vulnerable customer groups highlights additional, often overlooked pain points. Especially where multiple characteristics intersect and create friction along the customer journey.
Understanding characteristics and impact of vulnerability
The FCA defines four primary drivers of vulnerability:
- Health – Physical or mental health conditions that affect engagement or decision-making.
- Life Events – Situational challenges such as bereavement, job loss, or divorce.
- Resilience – Limited ability to withstand financial or emotional shocks.
- Capability – Low financial knowledge, confidence, or digital access.
Each presents unique challenges, and many individuals face more than one at the same time. Even in isolation, certain characteristics can make dealing with financial issues more challenging than those without these vulnerabilities, which in turn can lead to less positive experiences when dealing with financial organisations.
In our ‘2025 Vulnerable Customers’ Experiences in Financial Services’ report, one financial services customer noted:
Data sourced from our Moments of Truth programme reveals the disparity in experiences between vulnerable and non-vulnerable customers in terms of their NPS rated experiences.
These groups of individuals represent more than just statistics, they reflect real people dealing with grief, illness, insecurity and confusion, often without the resources or confidence to navigate financial systems effectively.
Confidence and knowledge gaps are growing
Compared to those without vulnerability characteristics, vulnerable customers often feel less confident and informed when managing their finances. Many struggle to understand financial products, processes, or where to go for help. This uncertainty can create a sense of hesitation and fear, particularly the fear of making a wrong decision.
As a result, many avoid engaging with their financial provider altogether, even when support is needed. Over time, this lack of confidence and knowledge can deepen feelings of exclusion and reduce the likelihood of positive financial outcomes.
Lack of awareness and fear of disclosure remain barriers
One of the most pressing issues is that many vulnerable individuals feel less empowered to seek help. Whether due to a lack of appropriate availability to disclose their vulnerability or fear of being judged, many simply do not reveal their circumstances to their financial providers.
These customer voices, which resonate in our ‘2025 Vulnerable Customers’ Experiences in Financial Services’ report, underline the need for support systems that are easy to access, flexible, empathetic and above all, stigma-free.
Vulnerability is complex, fluid and personal
Vulnerability is not a fixed state. It can be temporary or long-term, visible or invisible, and may fluctuate depending on someone’s circumstances. Yet many approaches to customer service continue to rely on simple, binary classifications.
Responding effectively means shifting from static labels to a deeper understanding of individual characteristics and how they interact.
Key takeaways
- Vulnerability affects a significant portion of the population and is likely to grow as economic pressures continue.
- Individuals may be vulnerable in different ways and those with multiple vulnerabilities face greater risk.
- One-size-fits-all solutions are not enough. Effective support requires an understanding of context and individual experience.
Improving service for people in vulnerable circumstances is not just about meeting regulatory requirements or mitigating risk. It’s also an opportunity to create more personalised communications, flexible customer service, accessible and empathetic systems for all customers.
Learn more
Our recently published ‘2025 Vulnerable Customers’ Experiences in Financial Services’ combines large-scale survey data utilising our Moments of Truth research programme along with deliberative qualitative research which provides real-life accounts to highlight emotional, behavioural, and practical support gaps
The report offers a comprehensive view of how vulnerability is experienced across different customer journeys. The findings are intended to guide more inclusive service design and help financial organisations see vulnerable customers’ visions for banking in the next decade.
If you would like to find out more about which experiences financial services most need to address and how to design customer services more effectively, please do get in touch with Jacqui or Karen directly.
We can provide further information on how to access our Vulnerable Customers’ Experiences in Financial Services Report and how our Moments of Truth programme currently benefits the financial services sector.
