Consumers are far more willing to complete vulnerability assessments than many financial services firms anticipate, according to new data from MorganAsh.
The findings, drawn from users of the firm’s MorganAsh Resilience System (MARS), challenge longstanding assumptions within the industry that vulnerability assessments deter engagement or prolong onboarding processes.
Firms using the MARS platform – which spans the advice, credit, debt and insurance sectors – report consistently high consumer response rates to the assessments, particularly when embedded in existing engagement processes.
The data shows that 95% of people under the age of 80 complete the vulnerability questionnaire when offered online at the point of sale, with the remainder completing the process with help from an agent or adviser.
Among consumers aged 80 and above, the completion rate remains strong at 71%, with nearly 20% assisted directly by firms.
The results appear to counter fears among financial institutions that vulnerability assessments might act as a barrier to conversion. MorganAsh reported that 84% of respondents completed their assessments in eight minutes or less, and more than half did so in under five minutes.
Manual methods remain in use, particularly for older or less digitally confident clients. By offering telephone or in-person assessments, some firms achieve 100% completion rates, according to the data.
Andrew Gething, managing director of MorganAsh, said the figures demonstrate that industry scepticism over customer participation in vulnerability assessments is largely unfounded.
“The MARS data is really encouraging as it demonstrates how willing consumers are to cooperate with vulnerability assessments – something that many firms have long been sceptical about,” he said.
“It also shows that this doesn’t have to be a laborious process – there are high levels of completions and most completed in good time too.”
Gething added that adopting such assessments not only supports compliance with Consumer Duty, but also improves firms’ understanding of customer circumstances and enables more tailored support. “Once you understand your customers’ circumstances, it becomes far more appropriate to provide targeted support – while the opportunity to provide this using automation becomes far more realistic,” he said.
On average, the MARS data indicates that consumers exhibit 2.3 vulnerability characteristics per person, a figure aligned with the Financial Conduct Authority’s (FCA) recent Financial Lives survey. That survey estimated that 26 million UK adults – around 49% – live with one or more characteristic of vulnerability.
While MARS users typically report vulnerable customer rates that match the regulator’s expectations, many other firms continue to report implausibly low figures, sometimes in single digits or even zero, according to the FCA’s own research.
MorganAsh continues to invest in enhancing the MARS platform, offering firms more personalisation and flexibility in designing assessments that suit their risk appetite and customer journey. The platform can generate a consistent and objective Resilience Rating – similar in concept to a credit score – to help firms monitor vulnerability over time and ensure delivery of good outcomes under Consumer Duty.
The company also operates a consumer-facing portal designed to educate individuals on the importance of health, lifestyle and vulnerability factors in financial services, reinforcing engagement with the process.
