Creating the framework for advisers and providers to work together
Advisers and providers are no doubt having conversations that are similar with vulnerable customers. People sometimes think anyone with an adviser must be financially comfortable, and so immune from becoming vulnerable, but this is not necessarily the case.
At Standard Life, we recently collaborated in research with AKG, which found that IFAs believe 35 per cent of their clients could be classed as vulnerable.
In many ways, it can be even tougher for advisers than providers as advisers will generally have more regular contact with clients – whereas provider interactions are likely to be more sporadic.
By the very nature of the relationship advisers can find themselves treated like an extended member of the family by some clients and this can lead to some extremely challenging conversations with very vulnerable people.
In addressing this issue, the spirit of collaboration is vital, and there is an imperative for providers and advisers to have conversations with each other about vulnerability.
There is much to be learned from each other. We are, ultimately, one financial services sector with a responsibility to achieve good outcomes for vulnerable customers. Sharing data and experiences of the challenges faced in addressing customer vulnerability is becoming more important as the problem cannot be adequately addressed in isolation.
So, hearing from each other about the challenges we are facing, and what we are doing to make our services and communications accessible and inclusive, is key.
Addressing the disclosure gap
The hurdles providers have in identifying vulnerability extend to advisers who also struggle to help clients if the issue is not immediately evident. There are still limitations in understanding how and when people are happy to talk about their vulnerability.
We know there is a ‘disclosure gap’, a missing piece of the puzzle in understanding vulnerable customers and how people feel. Put simply, people do not always say how they truly feel.
One example might be someone with a gambling addiction. They might not disclose this because they feel embarrassed or ashamed. Maybe they do not even see this as a problem until it is too late.
There is a lot of research still to be done to uncover these insights. There is an immense power in providing a safe, open and non-judgemental environment, listening with real focus and adapting behaviour and language to suit individual situations. This can be achieved even in a relatively short interaction. Humans open up to humans.
