Only 17% of UK Consumers Know They’re Vulnerable Related Articles How To Deal With Vulnerable Customers How to Write to Vulnerable Customers How to Serve Vulnerable Customers How (and Why) To Protect Vulnerable Customers © GAMARUBA - Shutterstock - 1769007815 Filed under - Contact Centre News, NICE The majority of UK customers don’t even realise they are vulnerable, states NICE in its new Vulnerable Customer Report. The study has found that only 17% of UK consumers self-identify as vulnerable, despite 67% being deemed as potentially vulnerable when assessed against Financial Conduct Authority (FCA) criteria. This gap in awareness could have dangerous consequences for both consumer and business as vulnerable customers are left without adequate support when they need it most at a time when regulators are tightening rules. Common Misconceptions The survey found that 39% of respondents mistakenly believe that vulnerability is solely dependent on age and only applies to those aged 65 and over. Yet, 38% of respondents in all other age groups said they would struggle to meet an increased rent or mortgage payment of just £50 per month, putting them in an extremely vulnerable position financially. In contrast, just 14% of over 65s felt heavily burdened by bills and credit payments. This group was also least likely to have changed their behaviour due to financial pressure in the past year. Consumers Refuse to Talk However, even when vulnerability is self-identified, the survey found that consumers may not be willing to talk about it. Almost three quarters (71%) of consumers correctly identified poor mental health as a driver of vulnerability, but over one third (38%) would still not be comfortable sharing details of poor mental health with a customer service advisor. This rises to almost half (47%) for those who identified as currently experiencing poor mental health in the survey. This puts customer service agents at a disadvantage when trying to offer support to vulnerable customers. Hidden Vulnerability In collaboration with Focaldata, NICE surveyed over 2,000 UK adults to debunk vulnerable customer misconceptions, highlight the complexity of identifying vulnerability, and assess how needs differ across each consumer group. Each participant was surveyed against the FCA’s four key drivers of vulnerability, which range from financial to emotional. Based on the findings, the report lays out five hidden consumer groups at risk of vulnerability that all businesses should be aware of: Unexpected Carers Suddenly becoming a main carer for a close family member isn’t easy. 30% of this group admit low confidence in managing money, and almost a quarter are hiding money problems from family. Ground-Down Gen Z Age is nothing but a number. Forty-two per cent of this group admitted the leading cause of financial pressure was high energy and utilities bills. Twenty-five per cent have used buy-now-pay-later schemes in the last year, but 16% say they have missed payments. Striving Renters Only 21% of striving renters (who are typically aged between 25 and 44) self-identified as vulnerable, but as many as 83% could be at risk according to FCA criteria. This group would struggle to meet an increase in rent or bills. Hard-Up Homemakers Owning an asset does not always go hand-in-hand with cash flow. Almost a third (33%) of middle-aged mortgage holders have stopped saving or investing due to financial pressures. This rises to 37% for those with at least one young child. Solo Sufferers In a world built for two, over a quarter (26%) of this group struggle with poor mental health. 12% experience increased financial pressure due to a recent relationship breakdown and 32% are feeling heavily impacted by mounting bills. What Can Businesses Do? Richard Bassett, VP of Digital & Analytics at NICE, says, “Offering personalised, empathetic customer service in today’s digital world can be challenging. “This becomes even more complex when needing to support vulnerable customers. As our report highlights, the signs of vulnerability are not always easy to detect, especially when consumers aren’t aware of their own vulnerability or willing to talk about it. “Yet many businesses still rely on agents to not only accurately identify vulnerability during every conversation, but also respond to their varying needs. “With regulators tightening rules around the fair treatment of vulnerable customers, businesses risk large fines if they don’t get this right. “Promisingly, AI delivers a solution. Harnessing the power of your customer service data, AI can help to accurately detect signs of vulnerability during every interaction – be that stress, financial woes, or even a breakup – and offer real-time guidance for agents to ensure they can provide an exceptional experience every time.” You can view the full report here For more information about NICE - visit the NICE Website About NICE NICE is a leading global enterprise software provider that enables organizations to improve customer experience and business results, ensure compliance and fight financial crime. Their mission is to help customers build and strengthen their reputation by uncovering customer insight, predicting human intent and taking the right action to improve their business. Read other posts by NICE Call Centre Helper is not responsible for the content of these guest blog posts. The opinions expressed in this article are those of the author, and do not necessarily reflect those of Call Centre Helper. Author: NICE Published On: 20th Feb 2024 Read more about - Contact Centre News, NICE Recommended Articles How To Deal With Vulnerable Customers How to Write to Vulnerable Customers How to Serve Vulnerable Customers How (and Why) To Protect Vulnerable Customers Related Reports eBook: Cut Contact Center Costs Without Straining Employees Report: The State of the Market for Workforce Engagement Solutions eBook: Hit Business Goals, Engage Agents, and Delight Customers eBook: Break Outdated WFM Paradigms Contact Centre Reports, Surveys and White Papers Get the latest exciting call centre reports, specialist whitepapers and interesting case-studies. Choose the content that you want to receive. Contact Centre Reports, Surveys and White Papers Invites to exclusive Webinars & Events Weekly Newsletter