Financial Vulnerability Assessments
The Financial Conduct Authority defines vulnerability in terms of financial vulnerability, life events, health and competence. How do regulated firms’ embed vulnerability assessments into their operational processes that are proportionate and pragmatic? The PrinSIX platform enables clients to achieve both.
Financial vulnerability assessments have four steps
If there are no risk indicators, don’t put customers through an unnecessary or inappropriate assessment
Understand the root cause of potential vulnerability
While the symptoms may be visible in customers’ financial circumstances, the root cause won’t be. Is a recent drop in income short term as the customer changes jobs, or longer term due to illness? That needs engagement with the customer.
Understand at risk customer’s financial symptoms in more depth
Credit bureau and Open Banking data are the richest sources of insight.
Mitigate identified vulnerabilities
Ddeliver the right solutions appropriate to each customer. Forbearance, payment holidays, product changes, signposting are just some examples of mitigations – but each firm will have different ways to protect their customers.
The PrinSIX solution
PrinSIX Orchestrates vulnerability journeys that meet the needs of every customer, through every channel.
PrinSiX’s customer risk assessment model combines Credit report and Open Banking to get the deepest insight into customers’ financial circumstances highlighting vulnerabilities.
Provide digital journeys to further investigate these vulnerabilities and provide support.
Capture behavioural information throughout the journey which may highlight issues in customers capacity and understanding.
Allow customers to self-declare vulnerabilities in the journey and then provide them options for support which are relevant to them
PrinSIX helps our clients maximise understanding of customers’ financial position, while minimising customer friction.
Collaborating with PrinSIX to develop the UK’s first digital validation for our social tariff, which was deployed within a matter of weeks, has resulted in a 141% uplift in our social tariff take up – meaning more residents of Hull & East Yorkshire can manage their monthly bills during the cost-of-living crisis.
Our clients understand their customers. The PrinSIX team understand digital orchestration. Our collaborative approach combines both to realise the true digital potential that exists in our clients’ businesses.