Empathy and human interaction are still key as people continue to struggle to pay bills

In the past week, the Financial Conduct Authority (FCA) released the findings from its ‘Financial Lives cost of living’ survey, which tracks the number of households in financial difficulty or hardship.

It saw nearly 3,500 adults in the UK taking part during December 23 and January 24, and recorded respondent’s views on the role of the financial services sector. The survey asked a range of finance-related questions, including some around how effective they feel the industry has been in supporting people in financial difficulty, and if their standards are being met.

In summary, the FCA found mixed results. It has reported an undoubted positive improvement, with 7.4m people struggling to pay bills and credit repayments, down from 10.9m in January 23 – a 32% decrease. That is, however, still considerably higher than the 5.8m they recorded in 2020 before the cost-of-living crisis took hold.

However, a quarter of those surveyed state they are still struggling to pay bills or meet payment terms, with 11% admitting they had missed payments in the last six months of 2023. The survey found that private tenants, single parents and adults from ethnic backgrounds, are most likely to be in financial difficulty, with many admitting they have missed paying utility, credit card bills, and mortgage payments. 

So, whilst there are green shoots of positivity, there is still more to achieve. Against a tough backdrop, I do, however, feel the regulator should be praised for constantly urging those in financial difficulty to keep close to their lenders, and make the most of external support services who can give important and long-lasting advice. It’s a campaign that’s making progress.

Tough questions need greater empathy

Of course, as an outsourcer which deals with hundreds of thousands of customers on behalf of our clients every year, we always have a strong interest in FCA updates and announcements. With that in mind, for the BPO sector, the results of the FCA’s latest survey highlight just how important it is to deal with customers in debt properly – with compassion and understanding.

These are extremely difficult and personal discussions, but those people need empathy and meaningful discussions about the routes they can take, and ultimately, how to pay off their debts.

The FCA survey can be accessed and downloaded here.

It works to reach out

Another statistic which the FCA has highlighted from their recent survey was the fact that around 1.3 million people (nearly 47% of the adults who said they sought help from their lender or from a charity) have found they were in a better position as a result of that interaction or conversation.  Whilst it’s only a snapshot, that has to be hugely encouraging as it shows that when support is offered and taken, it can change people’s situation, outlook and find a way forward.

Part of that success really can be put down to human interaction, empathy and having the right people in place – trained, ready and committed to having those difficult conversations. We’re proud to be recognised for our sustained success in this area and have proven across the utilities, financial services and retail sectors, that our bespoke approach works.

Here at Sigma Connected we believe that when customers are in debt, speaking to a real human can help them find a way to pay bills and access the support available to them. We have definitely found that human-to-human conversations really are key when it comes to vulnerability. This is especially true when you look at our ground-breaking ReachOut initiative which, now soon set to mark its fifth anniversary, has seen our Pathfinders help thousands of people find a way to better manage their debts by signposting them towards free advice and support.

For us, it’s been obvious for some time that if people need a real conversation, then they need to speak to a real person, someone who will help set a path towards a solution and leave that customer feeling supported, and with more clarity around their situation.

We’d love to continue that conversation with any businesses who feel like they could be doing more to support their vulnerable customers at a time when, as the FCA findings show, millions still need more than ever.