The Financial Conduct Authority (FCA) has highlighted that banks and building societies can improve how they treat customers affected by bereavement or registering a power of attorney.
Since the introduction of the Consumer Duty, some firms are making a real difference with clear policies and procedures and actively using data to better identify needs and support their customers. However, some firms’ staff are unclear on the actions they need to take and how quickly.
In some cases, this meant some individuals and their representatives were unable to access funds to pay essential bills. There were examples of customers who struggled to get support during an emergency, such as a mental health crisis, adding to their distress.
The regulator has published good and poor practice to help firms provide the right support by being adaptable and putting consumers’ needs at the forefront of everything they do, which is consistent with the Consumer Duty.
This multi-firm review fed into the wider work on how financial services firms are treating vulnerable consumers but also has specific findings that are relevant for banks and building societies. Emad Aladhal, Director of Retail Banking, FCA said:
“Dealing with a bereavement or setting up a power of attorney can often be stressful and emotional.
When banks and building societies get it right for their customers they can make a real difference at a difficult time. But when they fail to recognise and respond to customers who need more help, it adds to the stress. All firms should consider where they can make improvements.
Our message to consumers is this – if you need to notify your banking provider about a bereavement or a power of attorney, speak to them about how they can support you and meet your needs.”
The FCA issued guidance to help financial services firms support consumers in vulnerable circumstances in 2021 and introduced the Consumer Duty in 2023, which requires firms to deliver good outcomes for all customers, including those in vulnerable circumstances.
As part of its 5-year strategy, the FCA will focus on helping consumers navigate their financial lives and make better informed financial decisions, and the Consumer Duty will be integral to how firms treat their customers.
