FCA Reports on Vulnerable Customer Support in Payments Firms

• •Around 50% of UK adults show characteristics of vulnerability.
• •Firms must improve processes for identifying and supporting vulnerable customers.
• •The FCA emphasizes the importance of recording vulnerability information effectively.

The FCA published findings on payments firms' support for vulnerable consumers, noting that around half of UK adults exhibit vulnerability traits. The report highlights good practices in identifying and supporting these customers, while also pointing out areas needing improvement, such as inadequate recording of vulnerability information and reliance on staff judgment. Firms are encouraged to enhance their processes to ensure better outcomes for vulnerable customers. The FCA's findings are aimed at helping firms meet their obligations under the Consumer Duty, which sets high standards for consumer protection. Specific recommendations include proactive identification of vulnerable customers and improving data sharing throughout the customer journey.