13/03/2025
On 7 March 2025, the FCA published its review of how well firms are meeting the requirement of the Consumer Duty to understand and respond to the needs of vulnerable customers.
The FCA’s review identified several areas where firms aren’t doing enough. One of these was a ‘failure to communicate clearly to meet the needs of customers in vulnerable circumstances’. It said:
Data from Research in Finance also shows that firms can do more to communicate clearly and effectively with vulnerable customers.
Our research found that customers with low financial capability, in particular, were keen for providers to do more on this front.
When asked how asset managers could improve customer experience, three of the top five areas for improvement identified by investors with low capability related to communications. 41% wanted ‘the way of making contact [to be] easier’, 41% sought ‘information that is easier to understand’, and 31% desired ‘information that is easier to find’.
Why does testing matter?
Testing key communications on vulnerable customers is essential for making those communications accessible and understandable.
Without testing, firms won’t know whether their communications meet the varied needs of vulnerable customers in their target market.
They also won’t have access to the feedback that they need to improve their communications. This is especially important since, as our research shows, vulnerable customers are more likely to point to communications as an area where firms are falling short.
How can Research in Finance help?
At Research in Finance, we have tested hundreds of communications for some of the world’s largest financial services providers.
Our Communications Compass tool is an online community where a sample of at least 20 customers – tailored to the provider’s target market and including customers with characteristics of vulnerability – give feedback on providers’ communications. Firms can use Communications Compass to test a broad range of materials, from letters, emails and information packs to videos and websites.
We take this feedback and turn it into an easily-digestible report that gives firms verbatim customer feedback, scores for usefulness, clarity, engagement and accessibility, and – where we can – benchmarks communications against similar materials that we have tested.
Our reports also give providers actionable insights to improve their communications. And we can re-test communications to show whether they have improved.
Because we have our own consumer panel, we can carry out testing quickly. Reports are typically delivered in 12 days.
If you would like to know more about how we can help you or your clients recognise vulnerable characteristics and meet FCA standards, please get in touch by calling +44 (20) 7104 2235 or emailing Richard Ley or Mick Hrabe.
