People with neurodivergences and mental health problems are being “financially harmed” by banks and other financial services firms, experts have said.
It comes as the pressure is mounting for British financial firms to better protect customers under new rules which could affect the majority of UK adults.
Overseen by the Financial Conduct Authority (FCA), a new consumer duty will set clearer and higher standards of consumer protection across financial services, coming into force from July 31.
The rules will require banks to protect people with vulnerabilities – defined as someone who is more susceptible to harm.
Vulnerable customers are often neglected when designing mobile and website journeys, whether that’s taking out a new product or managing finances day to day— Junaid Mujaver, partner at consultancy Newton Europe
All customers are at risk of becoming vulnerable, the FCA said, and more so if they have characteristics of vulnerability, such as poor health, low financial resilience, or face life events such as grief or new caring responsibilities.
It also includes people with neurodiverse conditions such as ADHD, dyslexia, and autism, as well as mental health problems like depression and anxiety.
It means more than half of adults fall under the umbrella of having vulnerable characteristics.
Yet these customers are currently getting “worse outcomes and being financially harmed” from financial services providers, consultancy Newton Europe said.
Almost half of consumers who applied for a financial product online in the last year – such as a current account or credit card, or taking out an ISA – either did not or were not sure they got what they needed from the experience, Newton found in a survey of more than 3,000 people.
The vast majority of these customers facing poor outcomes have vulnerable characteristics.
Junaid Mujaver, partner at Newton, said firms often use complex financial terms and can end up causing alarm among consumers unnecessarily.
“Most customers, old and young, vulnerable and not, prefer digital channels when using financial services”, he said.
“Yet vulnerable customers are often neglected when designing mobile and website journeys, whether that’s taking out a new product or managing finances day to day.”
The same survey found that a 10th of people have entirely avoided buying a product they needed because of a lack of understanding or anxiety.
It damages a bank’s profit if a customer abandons a website or app after being frustrated by the process, or switches to a different provider instead.
The consultancy calculated that poor digital customer journeys cost financial providers nearly £35 million in revenue over a year, from some 1.4 million people estimated to have given up when they found the process difficult.
Mr Mujaver said it is “critical” that firms use tried-and-tested methods such as behavioural psychology to solve issues deterring millions of consumers.
