Understanding and addressing vulnerability in 2025

Since our last publication on vulnerable customers in 2023, firms have continued to face challenges in addressing the needs of customers experiencing vulnerability. Our latest white paper delves deeper into these issues, providing fresh insights and actionable strategies for firms

Key highlights:

• In-depth surveys: We conducted comprehensive surveys with firms and consumers to uncover the current state of vulnerability management
• Representative cross-section: Our research includes a broad spectrum of customers, recognising the transient nature of vulnerability and the needs of both vulnerable and non-vulnerable customers
• End-to-end customer journey: We examined every touchpoint in the customer journey, from sales to the complaints process, to assess their effectiveness in delivering positive outcomes for vulnerable customers

What’s new in 2025?

• Increased customer expectations: Our recent Complaints Outlook 2024 highlighted that customer expectations have risen significantly. How are firms meeting these expectations for vulnerable customers?
• Post-pandemic insights: The data from our 2023 paper reflected the impact of the global pandemic. This new report builds on that foundation, showing that vulnerability is a dynamic issue
• Regulatory guidance: The FCA emphasises that all customers are at risk. Our paper explores how firms can manage vulnerability effectively, considering health, life events, resilience, and capability, while not building a two-tiered system of vulnerability management

Challenges and opportunities:

• Identifying vulnerability: While some customers are easily identifiable as vulnerable, others exist on the cusp or temporarily cross into vulnerability. Our paper provides strategies for recognising and supporting these customers
• Real customer case studies: We highlight examples of good and poor practices and provide guidance on how firms met (or failed to meet) customer expectations
• Data utilisation: Maximising the use of customer data can significantly enhance vulnerable customer management

Moving forward

Our 2025 report offers a contemporary view of vulnerability from both firm and consumer perspectives. It supports firms in adopting a principles-based approach to managing vulnerable customers, ensuring fair and effective treatment for all.

Download the white paper to gain comprehensive insights and practical strategies for improving your firm’s approach to vulnerable customers.