Neurodivergent people ‘being financially harmed by banks’
The claim comes as the pressure is mounting for financial firms to better protect customers under new rules which could affect most UK adults.
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.People with neurodivergences and mental health problems are being “financially harmed” by banks and other financial services firms, experts have said.
It comes as the pressure is mounting for British financial firms to better protect customers under new rules which could affect the majority of UK adults.
Overseen by the Financial Conduct Authority (FCA), a new consumer duty will set clearer and higher standards of consumer protection across financial services, coming into force from July 31.
The rules will require banks to protect people with vulnerabilities – defined as someone who is more susceptible to harm.
Vulnerable customers are often neglected when designing mobile and website journeys, whether that’s taking out a new product or managing finances day to day
All customers are at risk of becoming vulnerable, the FCA said, and more so if they have characteristics of vulnerability, such as poor health, low financial resilience, or face life events such as grief or new caring responsibilities.
It also includes people with neurodiverse conditions such as ADHD, dyslexia, and autism, as well as mental health problems like depression and anxiety.
It means more than half of adults fall under the umbrella of having vulnerable characteristics.
Yet these customers are currently getting “worse outcomes and being financially harmed” from financial services providers, consultancy Newton Europe said.
Almost half of consumers who applied for a financial product online in the last year – such as a current account or credit card, or taking out an ISA – either did not or were not sure they got what they needed from the experience, Newton found in a survey of more than 3,000 people.
The vast majority of these customers facing poor outcomes have vulnerable characteristics.
Junaid Mujaver, partner at Newton, said firms often use complex financial terms and can end up causing alarm among consumers unnecessarily.
“Most customers, old and young, vulnerable and not, prefer digital channels when using financial services”, he said.
“Yet vulnerable customers are often neglected when designing mobile and website journeys, whether that’s taking out a new product or managing finances day to day.”
The same survey found that a 10th of people have entirely avoided buying a product they needed because of a lack of understanding or anxiety.
It damages a bank’s profit if a customer abandons a website or app after being frustrated by the process, or switches to a different provider instead.
The consultancy calculated that poor digital customer journeys cost financial providers nearly £35 million in revenue over a year, from some 1.4 million people estimated to have given up when they found the process difficult.
Mr Mujaver said it is “critical” that firms use tried-and-tested methods such as behavioural psychology to solve issues deterring millions of consumers.