Nearly half of equity release customers could be considered vulnerable according to research conducted by the Equity Release Group (ERG), who are calling on the market to better identify and support vulnerable customers at an earlier stage.
ERG say vulnerable customers are treated as the exception, rather than being a ‘core component; of customer experience after their own experiences of dealing with equity release customers found 46% could be considered vulnerable. The research chimes with concerns raised by the Financial Conduct Authority (FCA) who earlier this year reported on 40% of vulnerable customers, the who may be facing emotional, financial, health-related or other concerning challenges, disclose their personal circumstances to their financial adviser, and even fewer are encouraged to share them.
Is therefore, asks ERG, the financial advice industry is doing enough to support vulnerable customers?
“Our latest data is a statistic we don’t shy away from, but rather one we need to be incredibly mindful of, and support through systematic change. With the implementation of robust and comprehensive systems, industry wide, we’re confident that this will result in heightened protection for vulnerable customers, as well as empowering every customer along the way. We need this consistency across the industry so that the customer remains front and centre of all we do.”
said Mark Gregory, Founder and CEO of Equity Release Group
The findings are from Factfind, an integrated equity release advisory service firm part of Equity Release Supermarket which has tracked data over the last 12 months since launch.
“We want to encourage open, honest and proactive discussions around this, to ensure that our customer journey isn’t merely an exercise but a core component of providing responsible financial advice throughout.”
added Gregory who pointed to their partnership with debt charity, StepChange, as evidence of a commitment to customer well-being and supporting those in a financially vulnerable situation
“Both our fully integrated digital Factfind and Product Confirmation Letter (PCL) are built using robust technology, providing enhanced usability and functionality, as well as heightened regulatory factors to take compliance and consumer duty beyond the required guidelines, significantly assisting a potential vulnerable customer.”
“Our aim is always to push for greater accessibility and make it easier for people to explore and access all later life lending solutions. Delivering a good customer outcome for all, including those who find themselves in a vulnerable situation has taken us time to craft, but we are relentless in our commitment to customer welfare, which goes beyond the realms of Consumer Duty.”
concluded Gregory.
