The latest findings of consumer attitudes and experiences in dealing with financial institutions are published. Since the previous survey in 2022, Consumer Duty has been introduced. So, has this focus on improving consumer outcomes started to make a difference?

An Improving Financial Situation

There is evidence that the actions taken by banks, building societies, debt advisers, pension and insurance companies are having a positive impact. For a start, the number of UK adults with low financial capability has dropped from 7.4 million to 6.5 million. This suggests people are gaining the support and/or understanding they need to understand and improve their financial situation.

In addition,

• The number of people investing in a private pension is up from 19% to 21%
• Households facing digital exclusion have dropped from 6.9million in 2017 to 1.2million in 2024
• Homes with outstanding mortgages exceeding 4 x the family income has dropped from 20% to 17%

I know from my work with organisations that many changes have been made to build awareness of vulnerable circumstances, adapt processes and improve support for those in need. Therefore, it is good to see the data reflects an improving picture.

Also, it is relatively early days for Consumer Duty, with companies recently embedding new procedures. If these companies continue to embrace continuous improvement, we should see even more positive results in the 2026 survey.

Consumer Duty Continuous Improvement

The FCA has long made it clear that the fair treatment of vulnerable customers can’t be addressed with a one-hit approach. People will always face life situations and health conditions that mean you can’t offer a one-size-fits-all approach. As a result, Consumer Duty is never going to be done and dusted. Instead, it has to be seen as a process of continuous improvement.

If you are preparing your organisation’s next steps, the Financial Lives Survey gives us useful insight.

Accessible Communication

Despite improvements, 6.5 million UK adults have low financial capability. These customers ‘feel overwhelmed when they have to interact with providers, find dealing with customer services on the phone confusing and difficult, don’t feel able to shop around for financial products, or put off or avoid making financial decisions.’

This indicates a need to simplify language, processes and the presentation of information to make it more widely accessible. It also identifies a need to have multiple channels of communication, so those who dread a call aren’t put off getting in touch.

Tying in with that, 1.2 million people still lack the internet connection, devices or technical knowledge to engage with digital communications. As more and more services are going digital, it is important to keep operating other channels.

The results also share that a fifth of customers have recently found it difficult to get through to a person when they’ve contacted an organisation. In some cases, they weren’t successful. This is a high volume of customers, not able to speak to a company that supplies them with services. You can understand their frustration. So, what do your call handlers need to ensure more calls are answered and the wait doesn’t hinder communication?

Building Trust & Company Reputations

36% of customers rate firms as honest and transparent in the way they deal with customers. If that was the satisfaction rating from course delegates, I would no longer be in business! It suggests there is still considerable work to do on building customer relationships and positive outcomes. And, especially so in the insurance industry, which was recognised as the least trusted.

What actions have you got in the pipeline to drive up this rating?

Food for Thought on Improving Vulnerable Customer Outcomes

At this point, I want to highlight a couple of considerations:

• Changes don’t necessarily require years of development or a big budget. There are plenty of quick wins that make a difference.
• The greatest insight into customer needs is gained from your customers, so speak to them, ask for feedback and listen.
• Improving customer outcomes is not simply a case of upskilling and equipping front-line teams. Good practices have to be embedded across the organisation. For example, we have very few product and process developers on vulnerability training courses. Yet, these individuals have a big impact on the accessibility and inclusivity of services.
• You are not alone. There are considerable benefits from collaboration with vulnerability specialists including local and national charities and companies like ours. We offer free resources and Q&A events to build understanding and support your journey.

I’m always researching, asking and collaborating to improve my understanding of vulnerable circumstances and customer needs. In line with this, I’m working with Three Hands to record interviews with individuals about their experiences of interacting with companies. It’s going to take time to finalise, video and edit these customer conversations. However, I know they will provide valuable insight from different perspectives.

Financial Lives are Real Lives

So, there are signs of things moving in the right direction, yet work continues. Each step you make helps you to gain or retain customers and make a difference in their lives. This isn’t all about regulation and data, it is about individuals in your community having a fair opportunity to make good decisions that can better their life circumstances.