The financial advice industry is facing a critical challenge: underestimating customer vulnerability. Recent research highlights a stark distinction between what advisers see and the reality of their customer base, risking substandard outcomes and non-compliance with evolving regulations like Consumer Duty. At Equity Release Supermarket, we're not just acknowledging this gap; we’ve actively closed it, ensuring our customers receive the bespoke care and protection they deserve.
The latest Adviser Pulse Survey 2025 by Schroders paints a revealing picture. It indicates that a staggering 95% of financial advisers believe less than 25% of their customer base is vulnerable. This perception stands in sharp contrast to the Financial Conduct Authority's (FCA) estimation that around 50% of UK adults possess at least one characteristic of vulnerability .
Within the equity release sector itself, the newly published Equity Release Council's (ERC) Later Life Lending and Vulnerability report reveals that 40% of customers applying for equity release in 2024 were identified as vulnerable by advisers.
At Equity Release Supermarket, our internal data tells a different story – one that aligns much closer with the broader reality and even exceeds the ERC's reported industry average. Through our diligent processes, we identify 46% of our equity release customers as vulnerable. This isn't a statistic we shy away from.
Many people don’t realise just how common it is to need a little extra support when making big financial decisions, especially later in life. In fact, new research shows that while most financial advisers think only a small number of their customers might be vulnerable, the reality is much higher. This misunderstanding can mean that people don’t always get the help or protection they deserve.
At Equity Release Supermarket, we’re working hard to change that. We believe it’s vital to spot when a customer might need more support, so we can give them advice that’s right for their situation. Our experience tells us that nearly half of the people we help could be classed as ‘vulnerable’ in some way whether that’s because of health, life changes, or simply feeling unsure about all the options available. Instead of seeing this as a problem, we see it as an important part of our job: to make sure everyone gets the care and clear information they need.
Recent surveys back this up. For example, while most advisers estimate that fewer than 1 in 4 of their clients are vulnerable, the FCA believes the real number is closer to 1 in 2. In equity release specifically, official reports show that about 40% of people applying for these products have some vulnerability. At Equity Release Supermarket, our careful approach means we identify 46% of our customers as needing a little more support.
By being thorough and thoughtful from the start, we’re able to spot when someone might need extra help and make sure we guide them in the way that suits them best. It’s all about giving you confidence and peace of mind, every step of the way.
Our Proactive Approach to Vulnerability Identification
Why such a significant difference between our figures and the broader industry's perception? It stems from our foundational belief that identifying and supporting vulnerable customers isn’t just a compliance exercise, but a core component of providing truly responsible financial advice. The ERC also emphasises that protecting vulnerable customers is a key priority for the Council and that the FCA’s Consumer Duty "firmly places the onus on firms to prioritise good customer outcomes, including for those in vulnerable circumstances".
Futureproofing Our Factfind and Advice Process
Our factfind and advice process is intentionally robust and comprehensive, designed with adaptability in mind as Consumer Duty requirements and regulations continue to evolve. We recognise the importance of taking the necessary time, particularly when evaluating the needs of vulnerable customers. This deliberate approach provides the opportunity to ensure that no needs are overlooked, and every customer receives the attention they deserve.
The factfind is fully digital and intuitive, with built-in markers triggered by various life scenarios like a recent bereavement, age, or income. Every question on our factfind must be completed as part of our comprehensive advice process, ensuring nothing is missed. The factfind and product confirmation letter are unique to Equity Release Supermarket, developed by Equitec, and form part of a broader, fully integrated advice journey that doesn’t require other technology partners.
Out identification efforts aren't limited to the initial factfind. The ERC highlights that vulnerability can be fluid and transient, requiring a "proactive and continuous approach to identifying vulnerability throughout the customer journey". We've embedded ‘smartER’ practices into our operations, ensuring that identification opportunities are ongoing throughout the customer journey. This continuous attention to detail, supported by technological innovation and broad adviser training, helps us recognise vulnerabilities and adapt our advice accordingly. Our advisers are equipped not just to spot the obvious signs, but to understand the subtle markers that indicate a customer may need additional support or a tailored approach. Often vulnerabilities are identified sooner due to the tools we have available on our website, asking customers directly and support for advisers through innovative warnings during their financial questionnaire meetings with customers. Our effective monitoring of customers has identified that half of them we see may be potentially vulnerable which flags a trigger for advisers to continue with caution during the advice process.
The Critical Impact of Early Identification
The importance of early and accurate identification of vulnerability cannot be overstated. For customers, it means receiving advice that is truly suited to their individual needs, circumstances, and capacity for understanding. It allows us to:
- Tailor communication: Ensuring information is presented in an accessible, empathetic, and understandable manner. We communicate with empathy and clarity, recognising the emotional and practical complexities of later-life borrowing.
- • Provide appropriate support: Connecting customers with third-party support services or involving trusted family members where appropriate and with consent.
- • Minimise risks: Protecting customers from making decisions they may later regret or that are not in their best long-term interest.
- • Ensure fair outcomes: Living up to the Consumer Duty principle of delivering good outcomes for all customers, particularly for customers who find themselves in a vulnerable situation.
For Equity Release Supermarket, this diligent approach reinforces our reputation as a responsible and customer-centred firm. This shows our dedication to not just meeting basic requirements but also building trust and long-lasting relationships based on genuine care. Our advice model is designed for the right audience and is continuously monitored to ensure it is personalised, empathetic, and tailored to each customer. With a strong and adaptable policy for vulnerable customers, our staff are well-equipped to identify and support those who have experienced a recent traumatic event or find themselves in a potentially vulnerable situation.
Leading the Charge for Better Customer Outcomes
At Equity Release Supermarket, our 46% vulnerability identification rate isn't a burden: it's a source of pride. It reflects our proactive stance, our robust processes and our unwavering dedication to protecting and empowering each customer. We understand the importance of providing personalised care and support to meet your unique needs.
