By Hilary Stephenson, Managing Director of Nexer Digital
The fintech sector has fundamentally transformed how people access and manage their finances, offering innovative solutions that allow for faster, more efficient ways to pay bills, transfer money, and save for the future. However, in the rush to innovate and provide convenient digital services, vulnerable customers have often been overlooked. Going forward, it’s important that all organisations make a concerted effort to ensure their services are accessible to everyone, particularly those who face barriers to financial inclusion.
The Financial Conduct Authority’s (FCA) recent report, Delivering Good Outcomes for Customers in Vulnerable Circumstances, has highlighted that many financial services, including those provided by fintechs, still fail to meet the needs of vulnerable customers.
Despite the introduction of the Consumer Duty in July 2023, which raised standards, requiring firms to act to deliver good outcomes for all customers, including those in vulnerable circumstances, the latest report outlines areas for improvement.
The FCA’s findings point to gaps in accessibility, inadequate customer support, and a lack of proactive engagement with those who may struggle to manage their financial affairs. Vulnerability is fluid, it shifts due to health issues, job loss, or crises. Fintechs must proactively identify and assist vulnerable customers rather than relying on individuals to advocate for themselves.
The impact of inaccessible services in fintech
A significant challenge in the fintech space, as pointed out by the FCA, is the inaccessibility of many digital services. The shift to online banking, mobile payments, and automated customer service has made financial management more convenient for many, but these innovations have left some vulnerable customers, especially those with disabilities, behind. Customers with hearing, visual, or cognitive impairments often struggle to access and navigate digital platforms that rely on text-based communication or complex user interfaces.
The lack of alternative communication methods is a key barrier to accessibility. For example, customers who are visually impaired may find it difficult to read text-heavy websites or use platforms that don’t support screen readers. Similarly, customers with hearing impairments may struggle to engage with services that do not offer alternatives to voice-based communication. Fintechs should actively involve vulnerable customers in the design process, ensuring that their needs, including any access needs, are built into digital experiences from the ground up. Organisations must prioritise accessibility by integrating features such as voice assistants, video calls, and other forms of communication that accommodate a wider range of needs.
Additionally, financial jargon and complex terminology present another significant barrier. Many digital financial services assume a level of financial literacy that not all customers possess. By simplifying language and offering clear, concise explanations, fintechs can make their services more inclusive and help customers make informed financial decisions. This approach builds trust, as customers are more likely to engage with services that meet their needs, and they understand.
Why vulnerability is dynamic and requires proactive support
Vulnerability is not one-size-fits-all, as it can change depending on personal circumstances such as health issues, job loss, or family crises. The FCA’s report emphasises that firms should not wait for customers to disclose their vulnerabilities but should instead develop mechanisms to identify and assist them proactively.
Fintechs can use data analytics and AI to detect early warning signs of financial vulnerability before a customer experiences a significant financial crisis. For example, research shows that a growing number of vulnerable customers have trouble navigating digital banking due to cognitive overload. Proactively simplifying interfaces based on behavioural data and customer insight should be a priority. By analysing transaction patterns, behaviour changes, or shifts in spending habits, they can identify customers who may be struggling. These insights allow organisations to step in and offer appropriate support before the customer must ask for it. For example, a customer missing payments or making unusual withdrawals could indicate financial hardship.
To effectively monitor outcomes, businesses should clearly define what a good outcome looks like for their products and services. This helps structure how they assess whether customers receive appropriate support. Collecting and using high-quality data allows fintechs to make data-informed decisions about improving customer experiences. By tracking customer interactions, support interventions, and financial patterns, they can then measure whether their services effectively aid vulnerable customers.
Beyond detection, fintechs should implement clear escalation processes to identify poor outcomes and act swiftly. Firms that do this well have strategies in place to address gaps and can demonstrate how they have responded to improve outcomes. Senior leadership engagement is also critical; ensuring that decision-makers prioritise customer outcomes creates a culture where accessibility and vulnerability support are embedded within the organisation’s approach.
By identifying these patterns early, firms can intervene early by offering support such as flexible payment plans, financial counselling, or access to alternative support services.
The FCA also stresses the importance of staff training to ensure frontline employees can recognise signs of vulnerability and respond appropriately. Customers who face challenges may not always articulate their needs clearly, so staff should be equipped with the knowledge and empathy required to offer practical solutions.
The role of accessible design
Accessible design is essential for creating inclusive digital financial services. For fintechs, this means ensuring that every aspect of their platforms, from the website to the mobile app, is designed to accommodate the needs of all users, including those with disabilities. Accessible design should be embedded from the outset, rather than treated as an afterthought. Through incremental usability testing, organisations can identify improvements early on, even before a service is live, ensuring that all users have a seamless experience.
Key accessibility features include screen reader compatibility for visually impaired users, adjustable font sizes, high-contrast colour schemes, and intuitive navigation. For customers with hearing impairments, alternative communication channels, such as text chat or video calls with sign language interpreters, in addition to traditional phone support, can be beneficial.
Fintechs must also consider the diversity of their customer base when designing products. For example, users with cognitive disabilities or those who are less familiar with digital banking may require simplified user interfaces and clearer instructions. That’s why it’s important to test with real users with lived experience and continue to iterate on this basis. Designing services that are simple, intuitive, and easy to navigate helps ensure that all customers can confidently manage their finances.
The human touch remains crucial. While automation and online platforms can improve efficiency, they can also create barriers for customers who require additional assistance, so they should be complemented by alternative support options for those who need human interaction. Offering phone lines, live chat, or in-person assistance can make a significant difference for vulnerable customers who require guidance. It can be the difference between vulnerable customers receiving help when they need it most or being left without support.
How to tailor services for vulnerable customers
Personalisation is key to meeting the needs of vulnerable customers. Businesses should offer flexible service models that allow customers to tailor their banking experience based on their individual circumstances. For example, some customers may require more time to review their financial decisions, while others may benefit from frequent communication and reminders. Fintechs can offer customisable features such as extended deadlines for payments, automatic reminders for important financial tasks, or tailored notifications based on the user’s preferences and financial behaviour. Additionally, fintechs should allow customers to opt into services that provide enhanced protections, such as spending limits or budgeting tools tailored to their needs.
Frontline staff play a crucial role in this personalised approach. They are the ones who often interact directly with customers, and as such, they must be trained to recognise signs of vulnerability and respond with empathy and understanding. Staff should be equipped with the knowledge and tools to offer appropriate solutions, whether that means explaining complex financial concepts, providing flexible repayment options, or connecting customers with the right resources for financial assistance.
Best practices for supporting vulnerable customers
Some fintech companies are already setting a strong example when it comes to providing inclusive and accessible services. There are companies using AI to identify when customers are likely to experience vulnerability, offering timely and personalised support. Others are introducing easy-read materials, flexible customer service scripts, and alternative communication methods like video calls with sign language interpreters. In addition, certain home insurance providers now proactively call vulnerable customers before significant weather events, offering reassurance and assistance.
Another best practice is integrating accessible design into fintech products from the outset, rather than attempting to retrofit solutions later. Through thorough research and user testing, organisations can identify essential features early on, ensuring that all users have a seamless experience with the service.
Building trust through inclusive services
As fintechs continue to grow and innovate, it is crucial that they do so with inclusivity and accessibility at the forefront. Vulnerable customers, whether due to disability, financial distress, or personal hardship, should not be left behind as digital financial services become increasingly prevalent. By adopting proactive support strategies, designing accessible services, and tailoring their offerings to meet the needs of vulnerable customers, fintechs can ensure that no one is excluded.
Beyond compliance, prioritising accessibility drives customer loyalty, improves retention, and enhances reputation – proving that inclusive services benefit both customers and businesses. Organisations that prioritise inclusivity and take a proactive approach will not only meet regulatory expectations but will lead the way in creating a fairer and accessible financial system for all.
