Some 35 Million Adults in the UK are Financially Vulnerable, According to FCA Criteria. And 37% of Financially Vulnerable Consures Want Greater Investment in AI-Powered Chatbots to Help Them With Financial Problems.
This is according to a recent report from Customer Experience (CX) Firm Nice, The changing face of vulnerabilityCarried Out by Focal Data, which found a risk in the number of British people who Identtify themselves as vulnerable, Hitting 19% – an increase of over one million people Since 2024, who study
But, Assessed Against Financial Conduct Authority (FCA) Criteria.
The first study was undertaken by Market Research Firm Focaldata Among 2,042 UK Adults in November 2023, then reepeated among 2,021 in November 2024.
The FCA defines a vulnerable consumer as somebody who, due to their personal circumstans, is especially suscepti to harm, particular when a company is not acting with approvers. It identifies four factors which may increase the risk of vulnerability: Poor health; Experience a distressing life event, such as a berevement; Low resilience; And low capability – Such as Financial, Digital or Language Skills, or Learning Difability.
Vulnerable consumers are Increasing on Digital Channels for Support, According to the Nice Report. Over a third (37%) said they prefer organisations to invest in better digital services like ai-Powered Chatbots Over Traditional In-Person Services Such as Real-Life Branchs, Surpassing Igital services (33%).
Richard Basset, Vice-Prescent of Digital and Analytics at Nice, SAID: “The Findings Pose a Considerable Challenge for Uk Organisations, Particularly Given Regulation like the focus Ity strategy. Vulnerability stems from an increase Range of Factors – From Financial Pressures to Personal Challenges – Making it harder to reconstruct, even for themselves.
“Subtle cues, such as men mentions of stress or relationship breakdowns, often surface during customer service interactions but are easy or affected by biased by biased by. Ai and Automation Provide a Critical Solution. By Analysing Customer Service Data, AI can detect vulnerability during every interaction and provide agents with real-time guidance-ensuring no one is overlooked.
“The anonymity offered by digital channels can be especially Empowering for vulnerable individuals who may feel uncomfortable discussing sensitive issues factor. This presents a significant options for uk organizations to levelge ai-powerful chatbots and virtual agents to help vulnerable customers resolve their issues Quickly and Cacurately.
“However, caution is essential. These solutions must be removed to detect subtle Vulnerability Cues and Responded Approve, Seamlessly Escalate to a Human Agent or the Correct workflow with full context. These insights should be used along with Data from Voice Channels to Enhance Agent Training and Support, ”He added.
It may see seem counter-enturator that ai could spot signs of vulnerability contact center is likely to miss. In a briefing with computer weekly, bassett said: “There are certain situations or circumstans where people do want the confidence of a human. If you have a bot that's diagnising you, that might be somewashing of a challenge to accept compared with a doctor.
“Having said that, if you've got financial deficulties, there's a lot of people who are embarrassed on the back of that, even ashamed of it. They haven't got the confidence to admit that to somebody in the Voice world, but on a chat, or even with a bot, they are okay to have that that those conversions. “
According to Basset, Customers, Especially Younger Ones, Feel More Comfortable Disclosing Details of Financial Worries to a Chatbot Than to a Live Human.
The study found that younger adults, especially thats under 34, are at the forefront of being self-aware, with 31% identifying as vulnerable compared to 19% Across All Age Groups. They are also more comfortable discussing mental health with customer service agents.
Darren Rushworth, President of Nice, Said: “The Increasing Self-Awareness Among Youner Consures is a promising step toward more open communication. However, Organisations cannot depend soly on self-definition, as it overlooks those who are unaware of their vulnerability or choose to hide it out of Fear, Embarrassment or Shame.
“Even when warning signs are flagged, they are often Missed if Advisers Lack the Confidence or Tools to Responded effectively. WORSE YET, even when advisers take appropriate action, these cases can still fall through
Financial Pressures, Particularly Rising Energy and Utility Costs, Continue to Weigh Heavily on Uk Househlets. Some 35% of Potentially Vulnerable Consures Anticipate Reducing or Stopping Heating and Hot Water Usage in 2025 Due to Financial Strain, According to the Study.
In addition to Financial Concerns (21%), Many Consures Feel Uncomfortable Discussing Other causes of vulnerability, such as mental health (34%) and relationship breakdowns (28%), with human consoreser sres.
Rushworth Added: “UK Organizations-Especially Energy Providers-MUST Adopt Ai-Powered Solutions that subtly Build Customer Confidence, Such as Self-SELP CONSUMERSURE ORMATION when in need.
“AI-Powered Guidance during Interactions AGENTS Provide Accure, Empathetic Support in Real Time. Automation can ensure compliance and events that include vulnerability approval