Target Group comments on FCA vulnerability review findings

07 March 2025

Melanie Spencer, sales and growth lead at Target Group, said:

“Despite the renewed focus given by Consumer Duty, the FCA’s findings once again flag real struggles among firms to properly support vulnerable customers – particularly around monitoring and taking action on outcomes among this cohort.

“One of the biggest stumbling blocks that the FCA continues to identify is a lack of good quality data among firms. Without this critical step, it becomes much harder for firms to understand who their vulnerable customers are, let alone what outcomes they are receiving and how best to provide support. Making those necessary changes to internal systems and processes or the investment in both in-house technology and vulnerability training can also be a real challenge for firms so focused on meeting their core responsibilities.

“It’s no surprise to see a growing number of firms looking to outsource to established and experienced partners to help relieve that burden faced by internal teams and bridge those knowledge and training gaps the FCA has identified. The regulator wants to see a proactive approach among firms – one that is aware of customer needs and can adapt to provide the right support throughout their journey. This is not an easy feat, but with the right technology, training and partners, there is an opportunity to truly know our customers, improve and tailor the service they receive and monitor outcomes effectively – all while building the necessary intelligence to meet the requirements of the regulator.”