Channel Strategy for Vulnerable and Underserved Populations: Beyond Digital Inclusion

As banks accelerate their digital transformation journeys, the promise of seamless, omnichannel experiences has become a central tenet of modern financial services. Yet, for millions of vulnerable and underserved individuals—such as the elderly, those with limited digital access, or people with specific accessibility needs—this digital-first approach can inadvertently widen the gap in financial inclusion. To truly serve all customers, banks must move beyond the notion of digital inclusion as a box-ticking exercise and embrace a channel-conscious strategy that recognizes the unique needs, preferences, and circumstances of these populations.

The Imperative: Regulatory and Social Responsibility

Regulatory frameworks, such as the UK’s Consumer Duty, have raised the bar for customer-centricity in banking. These regulations require banks to put customers’ interests at the heart of their practices, with a particular focus on fair treatment and accessibility for vulnerable groups. Compliance is not just about avoiding penalties; it’s about building trust and ensuring that no customer is left behind as the industry evolves.

Channel Consciousness: Moving Beyond Omnichannel

Traditional omnichannel strategies often treat all channels as interchangeable, aiming for consistency across digital, branch, phone, and other touchpoints. However, this approach can overlook the reality that different channels serve different purposes for different people. For example, while many customers enjoy the convenience of mobile apps, a substantial proportion—especially older adults—still rely on branches or phone support for critical transactions and advice.

Channel consciousness means understanding and respecting these differences. It requires banks to:

Segmentation Best Practices: Seeing the Whole Customer

Effective channel strategy for vulnerable populations starts with robust segmentation. Traditional demographic or income-based segmentation is no longer sufficient. Banks must incorporate:

Advanced segmentation techniques, such as 3D mapping, allow banks to visualize and address the complex interplay of these factors. This enables more targeted interventions—such as proactively offering in-branch appointments to those who struggle with digital onboarding, or providing accessible formats for communications.

Practical Approaches: Ensuring No One Is Left Behind

  1. Channel Matching and Personalization
    • Use data-driven insights to match customers with the channels that best suit their needs. For example, identify customers who are branch-dependent and ensure they have access to enhanced in-person support, while also offering gentle digital education where appropriate.
    • Personalize communications and offers based on channel preference, ensuring that vulnerable customers receive information in formats they can access and understand.
  2. Hybrid Channel Models
    • Recognize that many customers—especially those with complex needs—benefit from a hybrid approach. For instance, a customer may initiate a transaction online but require human assistance to complete it. Banks should design journeys that allow for smooth transitions between digital and human channels, with unified customer data to avoid repetitive explanations or lost context.
  3. Accessible and Inclusive Design
    • Ensure that digital channels meet accessibility standards, but also maintain and enhance non-digital options. This includes providing large-print statements, telephone banking with trained staff, and physical branches with accessible facilities.
    • Invest in staff training to recognize and support vulnerable customers, both in-person and remotely.
  4. Continuous Feedback and Iteration
    • Regularly gather feedback from vulnerable and underserved customers to identify pain points and evolving needs. Use this input to refine channel strategies and ensure ongoing relevance.
    • Validate segmentation models with real-world data, adjusting approaches as customer behaviors and preferences change.

The Business Case: Value for Customers and Banks

A channel-conscious approach is not just a regulatory or ethical imperative—it also makes business sense. Research shows that hybrid channel engagement delivers superior economics compared to digital-only or traditional-only models. By serving vulnerable populations effectively, banks can:

Getting Started: A Roadmap for Action

  1. Identify and prioritize key customer journeys where vulnerable populations are most at risk of exclusion or friction.
  2. Shape data and experience capabilities to enable more conscious, personalized interactions across channels.
  3. Build and scale solutions incrementally, starting with the most critical journeys and ensuring that all elements—digital and human—are connected and mutually reinforcing.

Conclusion

As banks optimize their channel mix for the future, the needs of vulnerable and underserved populations must remain front and center. By moving beyond digital inclusion to a truly channel-conscious strategy, financial institutions can ensure that every customer—regardless of age, ability, or circumstance—has equitable access to the services and support they need. This is not only a regulatory requirement, but a vital step toward a more inclusive, resilient, and customer-centric banking sector.