Millions of Brits unaware they're financially vulnerable

Our recent research reveals that around 11 million adults in the UK who are officially classed as vulnerable, don’t see themselves this way*. That’s 40% of the 26 million people who fall under the FCA’s definition of a vulnerable customer.

Why it matters

When people experience difficult times, such as a bereavement, poor mental health, job loss, illness, or even significant life events such as a new baby, it can have a real impact on their ability to manage their finances. In fact, one in six people (16%) told us they found it harder to make financial decisions in those moments, and one in seven (14%) said it distracted them from managing their finances. 

That’s where the industry needs to step up. Consumer Duty was introduced to ensure companies deliver good outcomes for all customers, including those in vulnerable circumstances. 

But here’s the challenge. Over two-thirds (68%) of vulnerable customers haven’t disclosed their situation to their financial providers. The main reason? They believed it wouldn’t make any difference to their treatment.

Speaking up can lead to better outcomes

So why aren’t more people speaking up? Privacy concerns, stigma and embarrassment are some of the main factors holding them back. Worryingly, 13% of people who did disclose vulnerability said they were treated worse, and a quarter of those were simply ignored. That’s unacceptable. 

It’s also worth noting that older adults (55+) are the least likely group to speak up, with 80% never having told any financial provider about their situation. 

But there are encouraging signs. Of those who did tell their bank or credit provider about their situation, 52% said they received better treatment.

Vulnerability is more common than you think

Vulnerability isn’t always about long-term illness or income. It can be short-term or in response to unforeseen situations. And anyone can become vulnerable at any point in their life.

Plus, our research reveals that people in vulnerable circumstances are 47% more likely to fall victim to scams. Given these customers are at higher risk, they deserve responsive support. That’s why Smart Money People will continually hold financial services to account to raise standards across the industry.

What needs to change?

We believe financial services companies need to do more than just meet regulatory requirements. They need to create an environment where customers feel safe to speak up, are aware that support is available, and are clearly guided to the help they need through better signposting and education.

This is a topic that’s close to our hearts. Last year, our Head of Business Development Jess Trueman spearheaded Smart Money People's vulnerable customer initiatives, bringing together a 24-strong industry working group to help drive meaningful change. In collaboration with Newcastle for Intermediaries, we also released research exploring how mortgage brokers understand and disclose customer vulnerability.

Let’s raise the bar, together

At Smart Money People, we’re proud to host over 2.5 million independent customer reviews, giving people a clearer view of how financial services companies treat their customers, and giving providers the data they need to close their insight gaps.

We’re here to help shine a light on what’s working and what needs to be improved. Because when financial services truly support those who need it most, everyone benefits.

*Smart Money People commissioned One Poll to survey 2,000 UK adults between 30 May and 10 June 2025. 1000 respondents had experienced situations in the past five years which would make them vulnerable by the FCA’s definition.