# Disconnected customers are one of the biggest problems facing financial companies Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2023-04-03 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: Unlocking Millions: Fintech solution for missing customer Meta Description: Discover how Gretel's free online hub connects consumers with financial services providers, repatriating lost and dormant accounts worth millions in value. URL: https://financedigest.com/disconnected-customers-are-one-of-the-biggest-problems-facing-financial-companieshtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/disconnected-customers-are-one-of-the-biggest-problems-facing-financial-companies-1736814206098-compressed.jpg) **Fintech solving the long standing issue of missing customer and dormant assets in financial services** **Duncan Stevens, CEO, Gretel** Gretel, (www.gretel.co.uk)  the free online hub which reconnects consumers with financial services providers and enables the repatriation of lost and dormant accounts, has announced two new partnerships as it continues to unlock millions of pounds in value for the UK public. The latest partnerships are with Forester Financial, a leading provider of UK Child Trust Funds, and ClearScore, the leading [credit score](https://www.financedigest.com/1-in-5-uk-adults-have-no-idea-what-a-credit-score-is.html "1 in 5 UK adults have no idea what a credit score is") app and marketplace. Both partnerships have been extremely impactful in a short space of time: Gretel has matched almost £4 [million in Foresters assets to its members](https://www.financedigest.com/millions-of-uk-linkedin-members-eligible-for-the-opportunity-of-a-lifetime.html "Millions of UK LinkedIn members eligible for the opportunity of a lifetime") in just a few weeks. With the commencement of the ClearScore partnership at the end of February, its 13 [million UK users now also have access](https://www.financedigest.com/700000-employees-across-the-uk-have-access-to-fair-finance-will-reach-one-million-employees-in-2017.html "700,000 Employees Across The UK Have Access to Fair Finance, Will Reach One Million Employees in 2017") to Gretel to help track down lost savings and investments, with users finding over £2,200 in lost assets, on average. But how have so many dormant accounts become lost or forgotten?  This situation presents a [considerable problem for both the industry](https://www.financedigest.com/ma-in-the-healthcare-industry-trends-opportunities-and-regulatory-considerations.html "M&A in the Healthcare Industry: Trends, Opportunities, and Regulatory Considerations") and the UK government, as it limits the efficient allocation of resources and has numerous consequences for society at large. It is estimated that [around £50bn is currently lying in dormant and unclaimed accounts](https://www.financedigest.com/5-common-mistakes-around-accounts-payable-automation.html "5 Common Mistakes Around Accounts Payable Automation"), with many consumers becoming disconnected from their money and unable to track it down to reclaim it. Gretel estimates that 20.8 million [people in the UK have become disconnected from financial products they own and there is as much as £78 billion collectively sat languishing in dormant or unclaimed savings and investments](https://www.financedigest.com/anyone-can-write-assignment-need-people-able-apply-new-skills-workplace-says-top-investment-management-company.html "“Anyone can write an assignment, but we need people to be able to apply their new skills to the workplace,” says top investment management company"). By far the biggest pot of unclaimed assets is the £27bn† – £65bn  in lost pensions belonging to over 2.8 million† people according to industry [data](https://www.financedigest.com/exclusive-binance-moved-346-million-for-seized-crypto-exchange-bitzlato-data-show.html "Exclusive-Binance moved 6 million for seized crypto exchange Bitzlato, data show"). Dormant assets can have a [significant social impact](https://www.financedigest.com/squirro-research-reveals-banks-believe-artificial-intelligence-can-have-a-significant-and-positive-impact-on-their-business.html "Squirro research reveals banks believe artificial intelligence can have a significant and positive impact on their business"). The assets are often linked to [individuals](https://www.financedigest.com/uks-cineworld-to-not-sell-assets-individually-denies-talks-with-amc.html "UK’s Cineworld to not sell assets individually, denies talks with AMC") who have lost touch with their financial providers or forgotten about the existence of the asset. In many cases, these individuals or their families may be in [need of the funds](https://www.financedigest.com/fintechs-and-funding-who-needs-who.html "FinTechs and Funding: Who Needs Who?"), whether to cover living expenses, healthcare costs, or to invest in education. The inability to access these [assets can exacerbate financial](https://www.financedigest.com/how-modern-digital-asset-management-technology-can-help-improve-digital-marketing-in-financial-services.html "How modern Digital Asset Management technology can help improve digital marketing in Financial Services") hardship and inequality. The presence of dormant [assets can also pose regulatory and reputational risks](https://www.financedigest.com/analysis-watch-out-risk-assets-the-rout-in-bonds-is-coming-your-way.html "Analysis-Watch out risk assets, the rout in bonds is coming your way") for financial institutions. In recent years, [regulators have been more proactive in identifying and addressing the issue of dormant assets](https://www.financedigest.com/bahamas-regulator-holds-ftx-assets-pending-delivery-to-customers-creditors.html "Bahamas regulator holds FTX assets pending delivery to customers, creditors"). Financial institutions that fail to adequately [address this problem may face](https://www.financedigest.com/infosecurity-europe-agenda-spotlights-innovation-as-security-leaders-address-cybersecurity-spend-in-the-face-of-economic-headwinds.html "Infosecurity Europe agenda spotlights innovation as security leaders address cybersecurity spend in the face of economic headwinds") fines, sanctions, or damage to their reputation. The [industry must take action to minimize these risks and demonstrate its commitment to consumer protection and social responsibility](https://www.financedigest.com/corporate-social-responsibility-within-the-festival-industry.html "Corporate Social Responsibility Within The Festival Industry"). So what is the solution?  The problem of disconnected [customers and the consequential issue of dormant assets within the UK financial](https://www.financedigest.com/financial-companies-delivering-better-value-for-customers-in-loyalty-programmes-compared-to-other-sectors.html "Financial companies delivering better value for customers in loyalty programmes compared to other sectors") services industry is significant and complex. It presents numerous challenges for [financial institutions](https://www.financedigest.com/the-future-of-financial-institutions-in-2023.html "The Future of Financial Institutions in 2023"), the government, and society at large, from the loss of value and misallocation of resources to the social impact and  regulatory risks, including an organisations ability to comply with the FCA’s new Consumer Duty. To effectively [address this issue](https://www.financedigest.com/havensrock-thrive-app-launched-by-punter-southall-health-and-protection-to-address-workplace-mental-health-issues.html "Havensrock Thrive App launched by Punter Southall Health and Protection to address workplace mental health issues"), a multifaceted approach is required: Firstly there needs to be collaboration between the government, [financial institutions](https://www.financedigest.com/what-the-future-holds-for-financial-institutions-in-2023.html "What the Future Holds For Financial Institutions in 2023"), and consumers.  The UK government and [financial services industry should work together to develop and implement a comprehensive national strategy which aligns with the Consumer](https://www.financedigest.com/50-of-consumers-wont-spend-more-than-20-minutes-applying-for-financial-products-online.html "50% of consumers won’t spend more than 20 minutes applying for financial products online") Duty requirements and appropriately addresses the issue of disconnected customers and dormant assets. This strategy should include standardized [procedures for customer](https://www.financedigest.com/customs-expert-british-firms-must-consider-transitional-simplified-procedures-brexit.html "Customs expert: British firms must consider Transitional Simplified Procedures for Brexit") reconnection and in turn, identifying, managing, and reclaiming dormant assets. Clearly, the Holy Grail would be a [centralized database to facilitate consumer access to information about their unclaimed assets](https://www.financedigest.com/u-s-to-move-3-5-billion-in-afghan-central-bank-assets-to-swiss-based-trust.html "U.S. to move .5 billion in Afghan central bank assets to Swiss-based trust").  The Pensions Dashboard would have gone some [way to starting this process](https://www.financedigest.com/three-ways-that-female-entrepreneurs-can-supercharge-their-hiring-process.html "Three ways that female entrepreneurs can supercharge their hiring process"), however it has been beset by problems, which is where fintechs can provide the answer. By leveraging innovative fintechs, the financial [services industry should simplify the process of reconnecting lost customers](https://www.financedigest.com/revolutionising-customer-service-three-sectors-that-are-leading-the-way.html "Revolutionising Customer Service: Three sectors that are leading the way…") and identifying and reclaiming dormant assets. Implementing digital platforms such as Gretel for managing and tracking unclaimed assets, using [artificial intelligence](https://www.financedigest.com/how-artificial-intelligence-is-simplifying-sanctions-screening-for-insurers.html "How Artificial Intelligence is Simplifying Sanctions Screening for Insurers") to improve data management, or developing mobile apps that make it easier for consumers to monitor and manage their financial assets are all potential opportunities which could radically transform customer engagement. Finally, it is essential for the [financial services](https://www.financedigest.com/the-future-of-financial-services-tech-evolution-not-revolution.html "The future of financial services: Tech evolution not revolution ") industry to work together to address the issue of disconnected customers and dormant assets. This includes sharing best practices, pooling resources, and [collaborating on initiatives aimed at identifying and reclaiming these assets](https://www.financedigest.com/bitfinex-and-connamara-collaborate-to-release-fix-digital-asset-gateway.html "Bitfinex and Connamara Collaborate to Release FIX Digital Asset Gateway"). By working together, the industry can develop more effective [solutions and ensure](https://www.financedigest.com/vias-cloud-based-solutions-ensure-painless-office-move-for-insurance-body.html "VIA’S CLOUD-BASED SOLUTIONS ENSURE PAINLESS OFFICE MOVE FOR INSURANCE BODY") that dormant assets are put to productive use. --- This blog is powered by Superblog. 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