Vulnerability is not binary, and why this matters

Vulnerability is not binary, and why this matters

This paper looks at why vulnerability is not a binary issue, and what firms can do to more adequately meet the needs of the FCA’s Consumer Duty regulations, provide their business with the right management information – and serve their customers in the most ethical way.

As firms have begun to get to grips with dealing with vulnerable customers, their systems have needed to follow suit. It’s not uncommon for forms to have added a ‘flag’ to their consumer database, with a yes/no for ‘vulnerable’ or ‘not vulnerable’. The reality is that vulnerability is not binary – which means that this is a wholly inadequate way of meeting the requirements of Consumer Duty regulations and nor will it provide the business with the information it needs to properly support its customers.

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