If I look back over my life so far, I can pinpoint moments of vulnerability. You probably can too. Life events like bereavement, divorce, serious illness, redundancy, or the challenges of running a business can knock us off course — personally and financially — and make us more reliant on those around us for support.
These are often the moments when people first seek financial advice. Research from St James’s Place last year shows that the biggest driver for people to pursue financial advice or guidance is a major life event. Sometimes these are positive and expected, like getting married or having a child. At other times, they are harder to navigate and arrive without warning.
Even in good times, talking to someone new about money can feel exposing. During tougher periods, that vulnerability increases. It’s one possible reason why 70% of women reportedly leave their financial adviser within a year of their husband’s death.
Identifying vulnerability can mean asking some difficult questions early in the relationship, and relying on honest answers
Experienced advisers know how to put clients at ease. But identifying vulnerability can mean asking some difficult questions early in the relationship, and relying on honest answers. It also requires regular revisiting of those questions over the years, to stay on top of changes in the client’s circumstances.
With the FCA increasingly focused on vulnerability, getting it right has never been more important. The regulator sees vulnerability as a key lens through which to view the Consumer Duty — and rightly so. If your service works well for clients in the most difficult situations, chances are it works well for everyone.
Technology has an important role to play. A well-designed digital vulnerability questionnaire — completed in your client portal or app ahead of a meeting — can help you assess and understand the many factors that shape a client’s vulnerability status. These include health conditions, resilience, financial capability and recent life events. The result is a more informed and comfortable conversation, with a well-prepared adviser and a client who feels seen and understood from the start.
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This kind of technology does more than streamline admin; it does the emotional heavy lifting. A psychometric approach, for example, can reveal how a client might respond to a future life shock or health issue, giving advisers deeper insight than the client may articulate directly.
Repeated use of the same questionnaire over time also allows you to track changes in vulnerability and demonstrate the impact of your advice. Over the past two years, Dynamic Planner’s Financial Wellbeing Questionnaire has helped firms identify vulnerability characteristics.
Encouragingly, the latest data shows a smaller proportion of clients presenting high levels of vulnerability in areas like resilience and financial capability over the last 12 months — suggesting that advice and support are helping to build long-term strength.
Crucially, digital tools allow advisers to monitor outcomes and document support for vulnerable clients in a way that satisfies both regulatory expectations and internal standards. Whether you’re a seasoned professional or part of a newer advice team, or you’re aiming to maintain consistency across a firm, that kind of evidence is invaluable.
As government and regulators explore ways to expand access to financial advice, advisers are also seeking ways to serve clients with smaller pots profitably
Looking ahead, this approach will become even more significant. As government and regulators explore ways to expand access to financial advice, advisers are also seeking ways to serve clients with smaller pots profitably. Research from Dynamic Planner shows these clients are more likely to be vulnerable, making scalable, tech-enabled support even more important.
We often talk about technology’s ability to drive efficiency. Its power to deepen the human relationship at the heart of financial planning is just as vital. The combination could unlock better outcomes for a wider range of people, including those who need advice the most.
Yasmina Siadatan is chief revenue officer at Dynamic Planner
