Understanding Vulnerable Customers 2024
The Understanding Vulnerable Customers 2024 report aims to provide platforms, asset managers, and advice firms with critical insights into the characteristics and needs of vulnerable investors. This year, the report focuses on addressing the challenges posed by the Financial Conduct Authority's (FCA) Consumer Duty requirements, helping firms better understand and serve vulnerable customers.
A Report Outline
Who is it for? The report is designed for financial service providers, including platforms, asset managers, and advice firms, who need to understand and address the needs of vulnerable customers in compliance with FCA guidelines.
What will it give you? The report offers detailed data and insights into the profiles of vulnerable investors, helping firms design products and services that meet their specific needs and improve customer outcomes.
Snippets of insights
Vulnerability
Vulnerability affects one in three investors, with low confidence being the primary driver
Mental health issues
Mental health issues are a significant source of vulnerability among fund investors, even among those who are financially engaged
Youth and women
Younger and female fund investors with lower assets are more likely to experience vulnerability
Passive vs active funds
Vulnerable customers tend to prefer passive vs. active funds
Platform satisfaction
Vulnerable platform users often report lower satisfaction with their platforms, highlighting a need for improved communication and value
Advised customers
Advised customers, despite receiving support from their adviser, still exhibit significant levels of financial vulnerability
What will the report support?
Prevalence of Vulnerability
Approximately 5.6 million UK investors exhibit at least one vulnerable characteristic, with low financial confidence being the most significant factor affecting 18% of all investors
Demographic Insights
Vulnerability is notably higher among women over 65 and individuals under 35, often with assets below £250,000
Sector-Specific Vulnerabilities
• Fund Investors: 27% are vulnerable, primarily due to mental health issues, leading to a preference for lower-risk investments and passive funds.
• Platform Users: 28% are vulnerable, with banks showing higher vulnerability rates.
• Advised Customers: 22% are vulnerable, with financial vulnerability being the most common issue.
Sources and Methods
The report is based on comprehensive surveys conducted among various investor groups, including:
• Survey of 6,486 nationally representative UK adults
• Survey of 6,058 UK fund investors
• Survey of 6,050 platform users
• Survey of 1,000 advised customers
• Survey of 523 Boring Money users
Get in touch with us to buy the report
Please contact rachel@boringmoney.co.uk for more information or to request a call with the research team.
Our top picks
Explore more of our products to gain valuable insights and learn how we can help your strategy and propositions through our services.
