What is Transient Vulnerability?
Transient vulnerability is a temporary or short-term period of vulnerability for a customer, such as someone going through a divorce or the loss of a loved one. The impact of COVID-19 saw a huge increase in the number of consumers experiencing transient vulnerability through poor physical health, redundancy, or a decline in mental health.
This is a difficult area to identify as the drivers can also introduce permanent vulnerabilities to some and the transient nature makes it particularly difficult to understand which customers are vulnerable.
Transient Vulnerability in financial services
For financial services firms, transient vulnerability is easy to miss because it can arise at any point in a customer relationship. Monitoring conversations for signs of changing circumstances helps firms respond with appropriate support, in line with FCA expectations on vulnerable customers.