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Worried your customer’s capability issues could make them vulnerable?
Adrian Moloney | 22.05.2023
Adrian Moloney, Group Intermediary Director, Kent Reliance for Intermediaries
It seems there’s hardly a week goes by when you don’t hear of another round of high street bank closures.
The number of bank branches in the UK has more than halved since 1986. According to consumer group Which?, banks and building societies have closed, or have scheduled the closure of, 5,469 branches since January 2015 – that’s a staggering rate of around 54 each month1.
While the losses may have little day-to-day impact on those of us who’ve embraced online banking and don’t need to physically visit a bank, the news is still concerning given that some of the most vulnerable members of society are reliant on being able to visit their local branch.
Many customers simply prefer doing their banking in-branch, with face-to-face services giving them the chance to talk to people. It also gives them the peace of mind and security of seeing transactions taking place and receiving a paper record to prove it.
The closures means hundreds of thousands of older people no longer have convenient access to basic banking services. And while a minority of older people do use online banking, a quarter of people aged 65 to 74 and around three-fifths of people aged 75+ don’t regularly use the internet2.
Low confidence or a lack of knowledge with digital skills could make customers more susceptible to harm when applying for a mortgage or loan, particularly if they use a firm that’s not acting with appropriate levels of care.
To ensure customers are treated fairly, the Financial Conduct Authority includes capability – which includes customers with a low knowledge of financial matters, low confidence in managing money or a low capability in other relevant areas, such as literacy or digital skills – as one of its four pillars of vulnerability in its guidance about how financial institutions can support vulnerable customers.
So if you’re helping a customer who you think may benefit from some extra support, let us know.
As an FCA regulated lender, ensuring customers have an appropriate degree of protection is central to what we do. We want vulnerable customers to experience outcomes as good as those received by other customers.
The most important thing to remember is not to be afraid of telling us, or speaking to your BDM; just because someone has a vulnerability doesn’t mean that we’ll automatically turn them down for a mortgage.
Whatever their support needs, our defined and robust approach ensures they’ll be treated fairly. Our upskilled staff receive the ongoing training they need to recognise and respond flexibly to their needs, whilst our systems and processes are set up to deliver help in a way that empowers and supports them.
To find out more, take a look at our Consumer Duty Hub which outlines the roles and responsibilities expected of us. You’ll also find details about what we’re doing as a business to meet them and provide good outcomes for your customers, as well as copies of our fair value assessments.
Get in touch with us or speak to your BDM to find out how we can help. This article forms part of a series around the four pillars of vulnerability, others articles cover resilience, health, capability and life event.
