The findings of a recent study on the financial services market offer a grim outlook for consumers. While only 17% of them believe that they receive the necessary guidance and resources to make sound financial decisions when they are deemed vulnerable, a worrying third of them admitted to making multiple poor decisions in the last two years.
This is prompting advisors to reconsider their stance on vulnerability and take proactive steps towards bettering the situation. Nearly two in five (39%) now believe that their ability to competently serve the most vulnerable person should be backed by expertise and knowledge.
However, there is still a lot of work to do when it comes to building trust within the marketplace. As many as 68% of customers believe they would receive more helpful advice from independent advisers, which suggest the current focus on protecting vulnerable customers isn’t widespread enough.
This also explains why only a little more than a quarter (27%) of people are confident about the finances of the future. Nearly five out of ten (46%) respondents believe their financial situation could worsen in 2021, which is to be expected considering the current economic and political climate.
Overall, this research is deeply concerning since it shows that customers may not be getting the help they need when it comes to managing their finances. Advisers need to do more to prevent vulnerable customers from making costly mistakes, and that will only happen when the issue is given proper attention and the right tools.
Understanding the risks posed to vulnerable individuals within the financial services market is key, as it could have serious implications for the future. While a minority of customers do have faith in the sector, the majority are skeptical and feel like they need more support when it comes to their financial decisions. Therefore, more must be done to protect them and give them the confidence they need to navigate the market.