As a financial firm or essential service provider, there is an expectation that you will identify customers facing difficulties and provide additional support. However, it isn’t easy to initiate those conversations or spot the signs. So, how can you encourage self-disclosure of vulnerable circumstances?

Why Don’t Customers Share Vulnerable Circumstances?

The FCA Financial Lives Survey revealed that 49% of the UK population is facing a situation that makes them less able to cope and therefore more financially vulnerable. This includes a recent divorce, redundancy and bereavement, as well as long-term health conditions or English not being a first language.

If these customers inform their local council, bank, utility and water suppliers, insurers and lenders, they may benefit from additional support. So, why don’t they?

Overwhelm

Firstly, if you are dealing with a difficult life situation, the thought of contacting one company can be overwhelming. You don’t know what they will ask, so what if you don’t have all the information they require? Multiply that by all the companies that you have accounts with, and it’s easier not to say anything.

Negative Consequences

Secondly, there is a good chance that you haven’t told close family and friends about your situation. We’re all good at covering up difficulties to avoid embarrassment, stigma or sympathy. So, why would you start telling your water company or internet provider? Most customers believe this is more likely to have negative consequences on the service they receive.

Recognising Vulnerability

Thirdly, many individuals do not recognise that their condition or situation makes them vulnerable. They are just focused on getting through each day. They may not have the cognitive ability to recognise the difficulties they face, or they know that others are facing greater hardships.

What is the Vulnerability Registration Service?

Following in the footsteps of the Government’s Tell Us Once service, the Vulnerability Registration Service (VRS) offers a chance to make a single self-disclosure, which can be shared with multiple organisations, across every sector.

How does someone register with the VRS?

The customer (or their Power of Attorney) only needs to provide their name, address, date of birth and contact details. They have the option of selecting one or more vulnerabilities from a list. However, they are not required to share any details on their circumstance or the cause.

What do customers need to know about the VRS?

A VRS registration is free for customers to use, is secure, does not impact their credit score, and information is not shared with non-member organisations.

When they register, the information they provide becomes available to companies that are members of the VRS, who can tailor their support, communications and journeys with their vulnerabilities in mind.

The customer can opt to remove their registration at any time. So, if their situation has improved, there is no data held on them. No one can tell they were ever registered.

Is it Worth an Organisation Becoming a VRS Member?

There is a charge for organisations to become members and gain access to the self-disclosed customer data. This is determined by the size of the company and its client base. However, it can help to leverage tailored support to those in need, resulting in better customer outcomes. As that is a priority for all FCA-regulated companies, VRS membership can offer good value for money.

However, to get the best value from VRS membership, organisations need to proactively promote the VRS to their customers and the wider community. At present, only a small percentage of people are aware of, and have registered for, the VRS. That means too many customers are missing out on support that could help them gain resilience and financial control.

When informing customers, be specific about the support that could be available. It is also helpful to give examples of the type of life circumstances that qualify for additional support. When people see that this is relevant to them and there are more benefits to self-disclosure than risks, they are more likely to sign up.

Other Self-Disclosure Options

When you contact customers who have registered on the VRS, listen to their needs and let them know how you can help. In addition, you may want to raise awareness of other external services that they can register for.

These can include:

The Priority Service Register

The Priority Service Register is another self-disclosure platform, which informs energy companies and water companies that someone has additional needs. People can register to ensure they are a priority for support if there are interruptions to energy and water supplies. In addition, customers can use this to inform of specific needs, including accessible communication formats.

Social Tariff

A Social Tariff offers qualifying low-income households a discounted broadband & phone service. It is an important step in keeping people connected to the internet to access essential services, work or complete homework. All of these are key factors in improving life experiences.

Benefits Calculator

By entering key information on income and outgoings into a Benefits Calculator, people can find out if they are entitled to any currently unclaimed benefits. In addition, information on specific support for customers with disabilities, carers, the bereaved, immigrants and more is available.

As with the VRS, awareness of these services is low, and the need is high. Therefore, by proactively informing customers of these free services and helping them to understand the benefits, you can help them access the support they need. You may also benefit from our Signposting resource, which is free to download.

5 Benefits to Organisations of Encouraging Customers to Self-Disclose Vulnerability

1. When customers self-disclose difficult life circumstances, it saves them and your frontline teams from difficult and sometimes distressing conversations. This can reduce cases of burnout, absenteeism and high staff turnover.
2. Self-disclosure helps you to provide what the customer needs to access your services, on a temporary or permanent basis, which helps you meet your regulatory requirements and avoid fines.
3. Customers who are supported are more likely to regain control over their financial situation. This increases your chances of being paid and avoiding costly and disruptive court proceedings.
4. By adapting services to better meet customer needs, you can reduce the time and costs associated with complaint handling.
5. Supportive organisations benefit from higher customer satisfaction ratings and positive customer reviews. This positive reputation helps to retain and gain loyal customers.

It’s Time to Build Awareness

Although nearly half the UK population face circumstances that mean they would benefit from additional support, self-disclosure rates are low. It is known that only 10% of eligible customers are signed up to the Social Tariff and 13% to the Priority Service Register. This highlights a gap in awareness, confidence and trust. By proactively promoting VRS and other opportunities to self-disclose, your customers, your employees and your organisation can benefit. What better reason to get involved, build awareness and provide support to help customers cope through challenging life circumstances?