Addressing Financial Distress Through Digital Engagement and Collaborative Solutions: Insights from Citizens Advice CEO

Alison Dunn, CEO of Citizens Advice Gateshead, discusses the structure and scope of Citizens Advice and the challenges they face in managing a wide range of services.

Alison highlights the misconceptions about Citizens Advice being a homogenous group and explains that each local charity within the network is independent and can look and feel different.

Alison also emphasises the importance of out-of-hours support and the barriers people face in seeking help and making contact. She shares insights into the complex issues clients bring, the need for empathy and understanding, and the impact of rising costs on household income, including the poverty premium.

The conversation explores the factors that contribute to higher expenses for individuals living in poverty, such as insurance costs, limited access to affordable credit, and the inability to afford basic necessities. It also highlights the importance of accessible advice and information for low-income individuals and the challenges faced by advice agencies in providing support.

The hosts and guest also look into the impact of debt on mental health and the need for creditors to adopt trauma-informed approaches. Additionally, the role of technology in improving financial services is discussed, with a focus on the potential of AI and automation to enhance customer experiences and support agents.

Takeaways

Out-of-hours support is crucial in providing assistance to individuals who may not be available during traditional working hours.

Barriers to seeking help and making contact include embarrassment, feeling overwhelmed, vulnerability, and having multiple challenges.

Digital channels can serve as a door opener, allowing individuals to engage and eventually transition to more meaningful conversations.

Rising costs, such as mortgage payments and utilities, have led to an increase in middle-income earners seeking assistance from Citizens Advice.

The poverty premium imposes additional costs on low-income households, exacerbating the difficulties of managing on a limited budget. Geographical and demographic factors can lead to higher expenses for individuals living in poverty, including increased insurance costs and limited access to affordable credit.

Low-income individuals often struggle to afford basic necessities and may face additional challenges such as higher transportation costs and limited access to supermarkets.

Accessible advice and information are crucial for individuals facing financial difficulties, and collaboration between creditors and advice agencies can help ensure support is available.

Debt can have a significant impact on mental health, and creditors should adopt trauma-informed approaches to engage with individuals in financial distress.

Technology, including AI and automation, has the potential to improve financial services by enhancing customer experiences and providing personalized support.

Chapters

00:00 Introduction and Overview

00:52 Structure and Scope of Citizens Advice

03:29 Services Offered by Citizens Advice

04:49 Challenges of Managing a Wide Range of Services

05:44 Importance of Out-of-Hours Support

08:01 Barriers to Seeking Help and Making Contact

09:12 Uncovering Multiple Issues and Root Causes

11:46 Digital Channels as a Door Opener

12:53 Protecting Face-to-Face Services

14:11 Middle-Income Earners Seeking Assistance

21:14 Impact of Rising Costs on Household Income

23:39 The Poverty Premium

27:11 Factors Contributing to Higher Expenses

29:07 Cost of Living for Low-Income Individuals

33:37 Importance of Accessible Advice and Information

36:20 Impact of Debt on Mental Health

37:54 Challenges Faced by Advice Agencies

43:28 Role of Technology in Financial Services