Unit 3: Serving Customers Experience Vulnerability

Question 1

Broadly, what is a vulnerable customer?

Answer 1

Someone who, due to their personal circumstances, is especially susceptible to detriment, particularly when a firm is not acting with appropriate levels of care.

Question 2

What are some common characteristics of vulnerable customers?

Answer 2

1. Low level of literacy / numeracy
2. Low income / high debt
3. Mental health problems
4. Poor English skills
5. Change in circumstances (job loss, divorce, bereavement)

Question 3

What are four categories of vulnerability?

Answer 3

1. Temporary (e.g. unemployment)
2. Sporadic (e.g. depression, caring role)
3. Permanent (e.g., dementia, disablement)
4. Compound (mix of different or same category of vulnerabilities, e.g. old, half-blind customers with new, short-term illness)

Question 4

What are some things banks should have for vulnerable customers?

Answer 4

• Easy to understand products
• Good communication
• Individual treatment
• Flexibility
• Specialists where appropriate