Only 4 in 10 vulnerable customers have disclosed their needs to their financial services provider, according to new FCA-commissioned research.

However, those who do share their circumstances tend to have better experiences. Among vulnerable customers who informed their financial provider, 74% said staff asked the right questions to understand their situation, 57% felt their firm genuinely cared, and 58% reported that their provider took action to support them.

Vulnerability can arise from various factors, including health issues, major life events, financial instability, emotional distress, or limited financial and digital literacy.

The research highlights that vulnerable customers are more likely to have negative experiences with financial service providers, such as banks and insurers, compared to non-vulnerable customers.

To address this, the FCA issued guidance in 2021 to help firms better support consumers in vulnerable circumstances. In 2023, it introduced the Consumer Duty, requiring firms to ensure positive outcomes for all customers, including those facing vulnerabilities.

On 7 March 2025, the FCA published a review featuring examples of good and poor practices to further guide firms in delivering care that aligns with the Consumer Duty.

Sarah Pritchard, Executive Director of Competition, Markets, and International at the FCA, stated:

“It can be difficult to share personal challenges with your bank or insurer, but those who do often feel more supported. While we’ve seen positive examples of firms making a real difference, vulnerable customers still report more negative experiences than others.”

“We encourage firms to build on the good practices identified, helping customers feel comfortable opening up and ensuring they receive the support they need.”