How customer service staff can respond to distressed or vulnerable customers
- Practice empathy.
- Set expectations for the call.
- Ask about communication preferences.
- Practice active listening techniques.
- Speak clearly without being patronising.
- Validate the customer’s feelings but don’t react to them.
What are the four Rs to consider when dealing with potentially vulnerable customers?
We wanted to understand how vulnerability is being interpreted by the industry, what response there has been in the four ? Rs? – how firms are choosing to recognise, record, respond, report – and in what ways the industry can work together on ideas and learn from other industries.
What are the 4 key drivers of vulnerability?
Four categories of characteristics are considered to constitute drivers of financial vulnerability –poor health, impact of life events, low resilience and low capability [3] (Table 1) -with the latest report finding that 53% of UK adults show one or more of these characteristics [4].
What skills and Behaviours do you use to help you identify and appropriately handle vulnerable customers?
Mentally visualising the customer so that they and their issue can be better related to and handled. Asking appropriate questions to the customer to ensure that they have correctly understood the conversation taking place. Summarising the call at the end of the session.
How do you identify a vulnerable client?
Other signs of a vulnerability may include:
- Extreme moods.
- Poor concentration or finding it hard to make a decision.
- Feeling overwhelmed by things.
- Being tearful or emotional.
What is vulnerable client?
A vulnerable customer is someone who, due to their personal circumstances, is especially susceptible to harm – particularly when a firm is not acting with appropriate levels of care.
Which of the following are examples of a vulnerable customer?
Examples of vulnerable customers include:
- A customer who has lost their job and is unable to pay their bills.
- A customer who is grieving the recent loss of a loved one.
- A customer who is juggling working from home due to the COVID-19 pandemic while also managing young children at home who are learning remotely.
How does the FCA define a vulnerable client?
Financial Lives 2020 survey: the impact of coronavirus. The FCA defines a vulnerable customer is someone who, due to their personal circumstances, is especially susceptible to harm, particularly when a firm is not acting with appropriate levels of care.
What is addressing the drivers of vulnerability?
Adaptation is a continuum from addressing the drivers of vulnerability…
What is vulnerable policy?
What is a vulnerable customer? The Financial Conduct Authority (FCA) defines a vulnerable customer as “someone who, due to their personal circumstances, is especially susceptible to detriment, particularly when a firm is not acting with appropriate levels of care.”
How would you approach a conversation with a member of your team you suspect is vulnerable and potentially at risk?
How to have vulnerable conversations at work:
- Listen first.
- Ask how you can help.
- Reflect.
- Support employees and allow them to be themselves.
- Talk candidly, even about difficult topics.
- Confront your own bias.
- Don’t force it.
- Set realistic goals.
What should we do if a customer is discussing vulnerabilities that we are unable to support with?
We clarify understanding at every point and always ask if there is anything else they would like us to explain. We ask the consumer to explain to us what they understand the agreement to be. We offer alternative types of communication – phone, post, email, in person.
Why do we need to look after vulnerable customers?
When consumers are in vulnerable circumstances, it may affect the way they engage with financial services. Vulnerable consumers may be significantly less able to represent their own interests, they may have different needs and may have more behavioural biases that negatively impact their decision making.
What is a vulnerable customer policy?
What is a vulnerable customer? The Financial Conduct Authority (FCA) defines a vulnerable customer as “someone who, due to their personal circumstances, is especially susceptible to detriment, particularly when a firm is not acting with appropriate levels of care.”
What are the 4 key drivers that the FCA considers to be the characteristics of vulnerability?
The FCA has identified four key drivers that can lead to customers becoming vulnerable: Health (Physical disability, severe or long-term illness, hearing or visual impairments, mental health condition or disability, addiction, or low mental capacity or cognitive disability)
What are the examples of vulnerability?
Examples of Vulnerability
- Taking chances that might lead to rejection.
- Talking about mistakes you have made.
- Sharing personal information that you normally keep private.
- Feeling difficult emotions such as shame, grief, or fear.
- Reconnecting with someone you have fallen out with.
What are vulnerability factors?
Vulnerability relates to a number of factors, including:
- Physical factors. e.g. poor design and construction of buildings, unregulated land use planning, etc.
- Social factors.
- Economic factors.
- Environmental factors.
What are the three factors of risk?
In disasters, there are three broad areas of risk to health: the hazard that can cause damage, exposure to the hazard and the vulnerability of the exposed population (see also Chapters 1.3 and 2.5) (1).
What age is a vulnerable client?
Those aged between 18-24 and over 65 are disproportionately likely to be potentially vulnerable, so may also benefit from this guidance.
How can banks help vulnerable customers?
“Managing financial data effectively can help safeguard the finances of vulnerable people. Kalgera enables banks and financial institutions to identify and protect vulnerable customers from financial harm.” Banks can use data to continuously monitor customers’ behaviour including: signs of stress.
What is the overarching aim for the FCA when considering vulnerable consumers?
1.2 Ensuring consumers have an appropriate degree of protection is central to what the FCA does. This includes protecting vulnerable consumers. 1.3 We want vulnerable consumers to experience outcomes as good as those for other consumers and receive consistently fair treatment across the firms and sectors we regulate.
