Providing solutions for vulnerable people in later life has led to the launch of an initiative by Just Group and the International Longevity Centre-UK (ILC-UK).
The project, Innovating for Ageing, will focus on identifying and supporting the development of products and services to address the challenges faced by ageing consumers at risk of vulnerability due to physical disability, serious illness, dementia or financial exclusion.
It has been launched in response to the increasing regulatory scrutiny of how financial services companies are addressing vulnerability.
The FCA has argued the market “is not serving many consumers in vulnerable circumstances consistently or well” and that “customers in vulnerable circumstances are being let down".
Stephen Lowe, group communications director at Just, said research by the FCA suggests half of UK consumers – more than 25m people – currently show “one or more characteristics of potential vulnerability”, indicating the scale of the issue.
Mr Lowe also pointed to the changes the regulator wants to see; which include high quality, good value products and services that meet consumers’ needs and where the needs of vulnerable consumers are taken into account.
Mr Lowe said: “The FCA is calling on [the] industry to lead the way in delivering better products and services.
“This project will be a rallying point for those seeking to respond to the challenges set by the FCA and to address the issues vulnerable consumers face, so that they are better treated and get better outcomes when interacting with the market.”
The initiative aims to bring together innovators and designers with groups representing vulnerable consumers, promote better understanding of the issues and identify solutions to specific problems vulnerable consumers face. It also has the goal of identifying and highlighting key lessons and good practice and reporting back on public policy implications.
Mike Richards, a broker from London-based Mortgage Concepts, said one of the biggest issues for advisers is the help they need to identify who is or is not a vulnerable customer.
He said that there needs to be more joined-up thinking between local authorities and groups that deal with individuals who could be classed as vulnerable.
He added: “Vulnerability is a big topic. We are living longer and older and people are going into retirement cash poor, but asset rich.”
Ima Jackson-Obot is features writer at Financial Adviser
