About 35 million adults in the UK are facing financial vulnerability, according to the Financial Conduct Authority (FCA). A recent report by customer experience firm Nice reveals that 37% of these vulnerable consumers are looking for better AI-powered chatbot support for their financial issues.
This report, based on a survey by Focal Data, showed that the number of people in the UK identifying as vulnerable has increased to 19%, which is over a million more since 2024. Many people remain unaware of their potential vulnerability, with nearly two-thirds of UK adults falling into this category.
The FCA paints a clear picture: a vulnerable consumer is someone whose personal circumstances make them more prone to harm, particularly when organizations don’t show adequate care. Key factors include poor health, distressing life events like bereavement, low resilience, and limited skills—be it financial, digital, or language.
According to the Nice report, more vulnerable consumers are turning to digital channels for assistance. Over one-third prefer organizations to invest in enhanced digital services rather than stick to traditional in-person methods. This preference is even higher than that of the general public.
Richard Bassett from Nice emphasizes that these findings challenge UK organizations, especially in light of regulations like the FCA’s Consumer Duty Act. He highlights how vulnerability can stem from various pressures, making it tough for individuals to recognize their own challenges.
He explains that AI has the potential to catch subtle signals of vulnerability during customer interactions. Unlike human agents, AI can analyze service data and provide real-time guidance, ensuring no vulnerable consumer is overlooked. Digital channels offer a level of anonymity that empowers individuals to discuss sensitive issues more freely, especially when they might feel uncomfortable doing so face-to-face.
Bassett notes that while some people prefer human interaction, many feel more at ease disclosing financial worries to a chatbot than to a live customer service agent. This is particularly true for younger adults, with 31% of those under 34 identifying as vulnerable, compared to 19% overall.
Darren Rushworth from Nice points out the promising trend of younger consumers being more self-aware, which could lead to better communication. However, he raises a crucial point: not everyone recognizes their vulnerability. Those who are unaware or feel ashamed may keep silent, and even when signs of vulnerability emerge, they can easily be missed if agents lack the right tools.
The report also underscores the financial strain on UK households. With rising energy costs, around 35% of potentially vulnerable consumers plan to cut back on heating and hot water in 2025. Discussions around vulnerability often extend beyond financial issues, yet many lack the confidence to address subjects like mental health or relationship troubles with human agents.
Rushworth argues that UK organizations, especially in the energy sector, must integrate AI solutions that foster customer confidence. These automated systems should support consumers in finding essential information while ensuring agents deliver accurate, compassionate help in real time.