The summit, set to attract representatives from various financial institutions, seeks to foster collaboration in addressing the growing issue of customer vulnerability amidst rising retail prices and the enduring impacts of the pandemic.

SFE, the representative body for Scotland’s finance sector, where approximately 160,000 individuals, or around 9% of the country’s workforce, are employed, has sponsored the summit. Major findings from Standard Life’s Retirement Voice study reveal a profound sense of financial anxiety, with only 41% of respondents feeling optimistic about their finances, and nearly 59% expressing confidence in their financial decision-making.

Key leaders, customer directors, and vulnerability leads from SFE member firms are expected to attend the summit, with additional input from the Financial Conduct Authority (FCA) and debt counselling charity Step Change. Discussions will focus on the industry’s capacity to address financial vulnerability in the UK and the forthcoming Consumer Duty rules’ potential to aid firms in supporting susceptible customers.

Attendees are invited to join the SFE’s newly created Vulnerable Customer Sharing Forum and to agree to biannual meetings aimed at enhancing industry-wide strategies for vulnerable customers. The summit will culminate in a series of shared commitments to foster cooperation and standardise vulnerability principles and standards. A post-summit report will provide a thorough summary of the event’s key findings and best practices.

Riffat Tufail, head of customer vulnerability at Standard Life, said: “People in Scotland and across the UK have been hit by a multitude of financial and emotional shocks with rising prices and borrowing costs coming hot on the heels of the pandemic years, challenging the resilience of almost everybody.

“It’s alarming to see the rise in financial vulnerability at the moment, with our recent study finding less than half of people feel optimistic about their finances. Every day our customer-facing colleagues see how the knock-on impact is affecting people’s financial confidence and decision making, both in the immediate short-term and over the longer term.

“There’s a real danger that the desperation of the current situation will have severe consequences for the future financial security of many as people sacrifice saving as they cope with daily expenses.”

Mr Tufail continued: “That’s why it’s so important that we come together as a financial services industry to share experience and knowledge. We are all facing the same issues and customers deserve the very best ideas and solutions our sector has to offer when it comes to achieving the best possible outcomes for all.

“There are so many great people with great ideas across our industry, and now more than ever is the time to get them together to do the best by our customers.

“I’m hugely proud Standard Life is hosting this event, hopefully the first of many, and I look forward to securing positive outputs with peers from other SFE member firms, the FCA and Step Change.”

Sandy Begbie, chief executive of Scottish Financial Enterprise, said: “Supporting and enabling vulnerable customers is a key priority for Scotland’s financial services industry, set out in our 2021 industry strategy which aims to drive our shared objective of having a positive impact on society.

“From covid-19 to the current cost-of-living crisis, our customers have been hit by a succession of major challenges in recent years which have increased financial instability, particularly in the most vulnerable groups.

“As an industry we are determined to confront these challenges head on to ensure that every person in Scotland is equipped with products and services that increase financial stability and help them navigate external challenges with confidence.

“Cross-sector collaboration is vital to achieve this. We look forward to working with our members and partners on an ambitious plan to drive new innovation and best practice, establishing shared goals that can make a real impact.”