Clocktower Support has adopted the MorganAsh Resilience System (MARS) to improve support and financial inclusion among its vulnerable customers.
A financial services firm supporting foreign nationals from Asia, Surrey-based Clocktower Support specialises in short-term loans for people coming to work in the UK.
It supports clients who often lack a local support network, are without British citizenship and perhaps without strong English language skills. As a result, many struggle to find assistance from mainstream financial services firms.
CONSUMER DUTY OBLIGATIONS
The firm introduced MARS in response to the requirements of Consumer Duty and uses the platform to assess each person’s vulnerability. With the help of MARS and its objective assessment, Clocktower Support has identified that 80% of its customers are considered vulnerable – significantly higher than the 50% most firms should expect, based on the FCA’s Financial Lives survey.
Using reports from MARS, Clocktower Support is able to work with individual clients to help them deal with any issues which arise from their vulnerability characteristics. MARS data, along with other factors such as affordability and credit checks, then enables Clocktower Support to provide important services to those who otherwise would have nowhere reputable to turn.
“The assessment gives me a good idea of any vulnerabilities, based on many parameters”
The partnership comes as the FCA continues its review into how firms are responding to the needs of vulnerable customers, with its findings set to be shared in Q1 2025. In a recent speech, the FCA said all firms in the value chain ‘need to act’ on customer vulnerability, highlighting minimal identification and poor practice in the wealth management sector in particular.
HAPPY PEOPLE
Danny Thomas, director of Clocktower Support, said: “The assessment gives me a good idea of any vulnerabilities, based on many parameters. The clients see that we do it to care for them, rather than just lend and take the profit. It’s not seen as intrusive. They appreciate that we do it to look at their circumstances and make sure what we do is affordable for them and doesn’t cause financial or mental distress. Assessments are easy. People are happy to fill it in and we’ve never had anyone who has refused.
“We get to know them quite well; we can ask each person if there is anything they need, based on the data MARS provides. It’s very straightforward. Setting up a new case is very easy and it’s easy to navigate and use. It would be very difficult and time-consuming to do the same thing without MARS. The push towards supporting vulnerable customers is a good thing for the industry. In some ways we were doing it, but now we can quantify it and demonstrate it.”
“having the right technology and processes in place unlocks the data necessary to better understand customer vulnerabilities”
Andrew Gething (pictured), managing director of MorganAsh, said: “The success of Clocktower Support helps to disprove the narrative that you cannot work with vulnerable customers. As Danny and his team have shown, having the right technology and processes in place unlocks the data necessary to better understand customer vulnerabilities and deliver a far greater service – especially to those who may not be able to access support from other providers.
“With the FCA’s ongoing review of how firms approach customer vulnerability and an increasing focus on improving financial inclusion in the UK, businesses need to understand who their vulnerable customers are, what outcomes they receive and how they compare to non-vulnerable customers. With this knowledge, financial services firms can offer a service that is not just compliant, but far more personalised and inclusive, and one that fosters loyalty from grateful clients finally receiving the support they need and deserve.”
