Business 53 www.aftermarketonline.net JULY/AUGUST 2024 as we develop our understanding of vulnerability. And we believe the automotive industry is aware of this too. Broadly speaking, there seems to be an overall (positive) consensus that vulnerability is an ongoing process, and there is a desire to do better. As for how we achieve that though, the goal should be for automotive firms to look at the vulnerability measures that are in place so far and ask themselves how they can go one step further. Test, learn and refine For many automotive firms, providing staff with vulnerability training might seem like the most logical way forward. It’s encouraging to hear from those in the industry that training gives sales teams a confidence boost. But while training is certainly important, what’s ultimately required is a continuous process of implement, test, refine and learn. In short, we need to assess the vulnerability data gathered so far and interrogate it for ways we can improve. Data wins out Data is key. Both a firm’s internal and external data. So many firms are new to the issue of vulnerability. And for those looking to get ahead of these developments, often a third-party specialist with a technology-driven assessment tool can help to accelerate the process, removing bias and subjectivity, and ensuring consistency across an entire client base. By combining clinical expertise with hard data, a specialist will be able to reassure firms that their systems and controls are affecting the change the FCA is looking for, and that they are giving their customers the best possible experience. Ultimately, with the cost-of-living crisis squeezing people’s finances, these Consumer Duty regulations will mean that good customer outcomes will need to be an absolutely essential part of a dealer’s processes and be front of mind too. But it should be emphasised that no one should expect an overnight transformation. In all likelihood we’ll be developing our understanding of vulnerability for many years to come. Over time, and as we continue to learn, the outcomes we deliver for vulnerable customers will undoubtedly improve. The FCA defines vulnerability as: Customers who, due to their personal circumstances, are especially susceptible to harm, particularly when a firm is not acting with appropriate levels of care. Firms should think about vulnerability as a spectrum of risk. All customers are at risk of becoming vulnerable and this risk is increased by characteristics of vulnerability related to four key drivers. O Health conditions or illnesses that affect ability to carry out day-to-day tasks; O Life events such as bereavement, job loss or relationship breakdown: O Resilience — low ability to withstand financial or emotional shocks; O Capability — low knowledge of financial matters or low confidence in managing money (financial capability). Low capability in other relevant areas such as literacy, or digital skills.
RkJQdWJsaXNoZXIy MjQ0NzM=