27/09/2017
The actions that the Financial Conduct Authority and the financial services industry can take to better meet the financial needs of older people are identified in an occasional paper outlining the findings of a FCA project launched in February, 2016 to explore how older people use financial services and products.
The first in a series of papers in the FCA’s over-arching ‘Approach to Consumers’ strategy, ‘Ageing population and financial services’ is intended to
- help firms identify and understand the specific needs, characteristics and preferences of older consumers
- encourage sustainable change by helping to create an environment that delivers good outcomes for older consumers
- challenge financial exclusion
- ensure firms proactively recognise the potential vulnerabilities associated with older consumers and act with appropriate levels of care
- encourage firms to consider the issues posed by demographic change, and take steps to mitigate potential risks or harm
To achieve this, the FCA sets out ideas that firms should consider and address, in ways that fit their business models, under the following three broad headings
- Product and service design
- Customer support
- Continuously review and adapt strategiesThe paper’s conclusions comprise a complex set of issues that will require action from multiple parties to address over time. They are grouped in the following areas
- Retail Banking – where many common issues arise for older consumers
- Third Party Access – ranging from powers of attorney to sharing details like passwords
- Later Life Lending – ensuring appropriate access for older consumers
- Long Term Care – how the financial services markets responds to the challenge