Keep vulnerability in mind during client interactions
For vulnerable clients, there’s a lot riding on your advice. With the Covid-19 crisis and the economic shock that has followed, they might be facing financial uncertainty due to redundancy, furlough or a significant drop in the value of their assets and investments.
The widespread economic impact of Covid-19 means any of your clients are at risk of drifting into the vulnerable category. Financial vulnerability might be the most prevalent, but in times of stress like we’re currently experiencing, a client could be grappling with less apparent symptoms of vulnerability, such as caring responsibilities, on top of their money worries. What’s more, the causes of vulnerability can be as intermittent and temporary as they can be permanent, making it all the more difficult to identify.
We are all potentially vulnerable now
Combine that with the fact your client might not necessarily identify themselves as vulnerable, or might be unable or unwilling to disclose the circumstances that are making them so, and the situation becomes trickier to navigate.
That’s why it’s so important during every client interaction to keep vulnerability on the radar of your advisers and other client-facing staff. It really is the key to spotting it early and being able to respond effectively, reducing the risk of causing your client harm.
Training should cover the wide range of scenarios that could push a client into vulnerability, and the possible ways they might indicate their circumstances — think tone of voice, confusion and misunderstanding. Bear in mind your staff could just as easily be vulnerable at this time, making extra support in this area all the more important.
Once you’ve spotted a vulnerable client, your policies, processes and systems need to be flexible enough so you can best accommodate their needs. All your advisers should be able to approach a difficult conversation with a client, but with everyone working remotely for the foreseeable future, consider how this can be done where face-to-face interactions aren’t possible.
You might need to provide tailored options for these clients, such as allowing a nominated third party to call on a client’s behalf or attend review meetings, whether they be virtual or in person.
The key to success in this area is a culture that is 100 per cent focused on the client. If you foster a culture in which your advisers and wider workforce truly care and are empowered to do the right thing for clients, then in turn your clients will feel more comfortable about disclosing their circumstances.
Getting your culture right and bringing vulnerability to the fore means, even in these challenging times, you can continue providing good outcomes for your clients.
Juana Diaz-Landinez is client relationship manager at TCC
Gloss