How to have those difficult conversations with clients who are vulnerable

Beth, our clinical lead, explains how to speak about financial vulnerability in a way that puts clients at ease.

It’s been well over a year since Consumer Duty was implemented, and let’s face it, financial vulnerability is still a hot topic. Indeed, the FCA have it covered twice in their focus for 2025.

Advisers know they should be talking about it with their clients, but it’s not easy. Most clients don’t see themselves as vulnerable, and those who do often prefer to keep it under wraps, using clever ways to mask their struggles. Even trained professionals can find it tough to spot someone at risk.

The reality is, there’s a lot of stigma around the word ‘vulnerable.’ Just saying it can make conversations feel heavy and negative. But these discussions are crucial. The FCA insists that clients at risk of vulnerability should receive the same positive outcomes as anyone else, so we need to bring it up.

So, how can mortgage advisors or brokers approach this topic in a way that feels comfortable for clients? How can we discuss vulnerability without using the word ‘vulnerable’?

Understanding Vulnerability

First off, let’s clarify what we mean by vulnerability. It’s got two sides: the clinical definition and how people actually perceive it. Clinically, being “vulnerable” means being at risk or exposed to harm. It’s not about personal weakness; it’s about external factors that don’t provide enough safety. The focus should be on what’s happening around the individual and how advisors can help them move forward.

On paper, this sounds great, but language shapes how we see things. Being labelled as vulnerable can feel like a personal flaw, leading to feelings of powerlessness or inadequacy. This gap between the clinical definition and real-world perception can create shame or embarrassment, making it hard for people to seek help. They might hesitate to share their situation for fear of being judged, which can make opening up to a financial advisor feel daunting.

Reframing Vulnerability

As a starter, let’s shift the conversation from financial vulnerability to financial wellbeing. This means taking a more holistic approach, focusing on a person’s strengths rather than just their challenges. Instead of asking what’s missing, let’s ask how we can build on the resilience that’s already there.

When talking to clients, consider discussing financial stresses or challenges instead of labelling them as vulnerabilities. The aim is to normalize these discussions, making them feel less stigmatized and more relatable. We all face ups and downs in life, and we can all feel vulnerable at different times.

This is all about the human experience. In the advisor-client relationship, we’re just recognising these challenges in a financial context.

Don’t Assume

It can be tricky to gauge a client’s state of mind, so advisors often look for certain keywords. But it’s important to avoid jumping to conclusions. If you hear terms like divorce or bereavement, it’s easy to assume you know what the client is going through. However, there might be more to their story that you’re missing.

Active listening is key here. For instance, a recent divorcee might have escaped an abusive situation, showing incredible strength and resilience. They could even feel relieved or financially liberated. If we focus too much on assumptions, we might rush to solutions that don’t fit their unique situation. Every client is different, and it’s essential to truly hear what they’re saying.

Encouraging Conversations

If a client is hesitant to share their circumstances, goal-setting can be a great way to explore their challenges. Ask them what their end goal looks like, then work backward to identify the steps needed to get there. This approach can help uncover what they’re dealing with and highlight any significant life events or issues.

Be mindful of the language you use. Terms related to specific conditions or life events can carry weight. For example, neurodiversity is a normal human condition, but some advisors might mistakenly label it as a vulnerability, which can harm the advisor-client relationship.

Keep your questions open-ended to encourage discussion without pressuring clients to share details they might not be ready to disclose. Work at their pace and respond with empathy. For example, you might say, “It sounds like you have a lot on your mind. Can you share more about what,’ worrying you?”

It’s great for advisors to start incorporating these ideas into their conversations. If you’re feeling unsure or struggling to engage, don’t worry—you’re not alone. There are resources and tools available to help you along the way.