Majority of consumers do not recognise their own vulnerability status

The majority of customers don’t even realise they are vulnerable according to research by AI customer service technology provider NICE.

The study has found that only 17% of UK consumers self-identify as vulnerable, despite 67% being deemed as potentially vulnerable when assessed against the Financial Conduct Authority (FCA) criteria. This gap in awareness could have dangerous consequences for both consumers and businesses as vulnerable customers are left without adequate support when they need it most at a time and regulators are tightening rules.

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.

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%) of 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.

Richard Bassett, VP of Digital & Analytics at NICE, said “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.”