“Notwithstanding, most advisers would rightly be concerned that ‘interrogating’ clients about known or likely ‘addictions’ would do little to build rapport.”
Nevertheless, data and analytics are increasingly playing a big part in identifying customer vulnerabilities, such as analytics that identify key words or behavioural patterns, says Richard Barnwell, a financial services advisory partner at BDO, an accountancy and business advisory firm.
“However, there is no one-size-fits-all,” Barnwell adds. “Each firm has to look at its customer base, products and services to assess the best ways to identify and support vulnerable customers.
“A bank may be more able to analyse a customer’s spending patterns to spot gambling than other types of firms, such as Sipp providers. We anticipate this is a subject the Financial Conduct Authority will look at in more depth this year.”
Chloe Cheung is a senior features writer at FT Adviser
