The cost of missing vulnerability

When a vulnerable customer interaction is mishandled — a loan declined without appropriate care, a collections call that fails to identify distress — the cost is not just regulatory. It cascades: the complaint is filed, escalated internally, referred to the Financial Ombudsman, and potentially flagged by the FCA for Consumer Duty review.

In 2024, UK firms paid £479M in customer redress. The FCA issued £176M in fines — up 230% year-on-year. The direction of travel is clear.

The model

EchoDepth's ROI model is based on a mid-tier UK bank handling 50,000 vulnerable customer cases annually. The assumptions:

Escalation reduction25%
Vulnerability detection improvement15%
Modelled annual savings£467,000
PoC investment£50,000

What the model excludes

The 3.1× ROI calculation is conservative. It does not account for:

  • Reduced FCA scrutiny and supervision costs
  • Avoided fines (£176M issued across the industry in 2024)
  • Reputational protection and brand value preservation
  • Reduced staff turnover in complaint-handling teams
  • Improved customer satisfaction and retention

These are modelled projections, not guaranteed outcomes. Actual results depend on case volume, current escalation rates, and implementation quality. Full methodology at echodepthfintec.com/methodology.

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