The FCA suggests that just under half of UK adults are potentially financially vulnerable (24.1m), and that the Covid-19 crisis is likely to be aggravating the situation further. Certain people may be experiencing vulnerability for the first time, while others may be adding new drivers of vulnerability to factors that pre-date the pandemic. The FCA now states that it expects firms to ensure that outcomes for vulnerable consumers are as good as those of other consumers.
This poses a challenge to financial service providers: both in identifying customers who may be financially vulnerable, but also to design products which meet the needs of all consumers, rather than an imaginary ‘average consumer’.
Open banking holds great potential in this space. It opens up deep and granular transaction data – enabling the delivery of products that are designed to reduce vulnerability and give consumers tools to take control of their financial lives.
More than 240 participants joined us for an insightful session where we shared the latest thinking on vulnerability and consider the critical role that open banking can play in identifying the signs of vulnerability, reinventing traditional financial services for all types of consumers and avoiding asymmetries between firms and consumers.
If you missed it, you can see the session below:
This event is finished