Research from the MorganAsh Resilience System (MARS) found that firms that used the platform, spanning those in the advice, credit, debt and insurance sectors, reported high consumer response rates to vulnerability questionnaires.
It found that when assessed online, 95% of people under the age of 80 complete the questionnaire when it is integrated into an existing engagement process. The remaining 5% are guided by an agent or adviser.
For consumers older than 80, 71% complete the questionnaires online themselves, while the remainder have assistance.
Across all ages, MorganAsh found that most people engaged with vulnerability assessments online when they were part of an existing engagement process. Some firms that use the MARS platform also complete the assessment on the client’s behalf, either over the phone or in person.
On average, 84% of consumers complete a MARS assessment in eight minutes or fewer, and 55% finish it in five minutes or fewer.
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MorganAsh said this addressed concerns in the market that vulnerability assessments would make fact finds or the sales process longer.
Andrew Gething, managing director of MorganAsh, said: “The MARS data is really encouraging as it demonstrates how willing consumers are to cooperate with vulnerability assessments – something that many firms have long been sceptical about. It also shows that this doesn’t have to be a laborious process – there are high levels of completions and most completed in good time too. In truth, there’s no reason why firms should not integrate vulnerability assessments into their processes – to really understand their customers, the outcomes they receive – and to have sufficient data to improve service and meet the requirements of Consumer Duty.
“Being able to quickly understand consumer characteristics and circumstances is equally applicable to targeted support, as proposed by the recent FCA’s Advice Guidance Boundary Review. Once you understand your customers’ circumstances, it becomes far more appropriate to provide targeted support – while the opportunity to provide this using automation becomes far more realistic.”
Gething said: “We continue to strengthen MARS and its customer vulnerability assessment – to offer firms much greater personalisation and configurability. This means they can choose the length and breadth of the assessment, based on their use case and appetite for risk. There’s also the opportunity to modify the follow-up – plus different tools to suit the customer journey.
“We support this work with our own consumer-facing portal that helps to educate consumers on the importance and value of engaging on questions around health and lifestyle characteristics and potential vulnerabilities.”
