Seymour Financial Resilience Index

What the Index Measures

The Seymour Financial Resilience IndexTM measures a household’s ability to get through financial hardship, stressors and shocks as a result of unplanned life events.  The regression model has been created based on four-years’ of statistical analysis and modelling of consumer financial health, stress and resilience data from our independent longitudinal Financial Health Index (FHI) studies, first launched in 2017 for Canada.

While we have been working on the Index for over two years, the importance of measuring and building financial resilience is more critical than ever, with the global pandemic and economic and financial shock of Covid-19. 

The Index was created specifically for Canada, and is based on the unique characteristics and nuances of Canadian consumers, social policies, provincial differences and our financial ecosystem. Yet application for the Index can be relevant for other countries by applying the same study and Index to those areas.  

 

Index Application and Benefits 

 The Index, combined with the longitudinal Financial Health Index studies dataset, allows financial institutions, government and organizations to measure, track and understand the financial resilience of their customers, borrowers and citizens over time. Covid-19 has revealed the importance of having pre and post financial shock measurements of financial resilience, to get a more fulsome picture. It can help enable targeted support strategies and policies targeting financial resilience in advance of future financial shocks, at the individual household, segment, provincial and national levels.

Application and Benefits

Financial Institutions, Government and other organizations can apply our Index, framework and FHI data to score and measure the financial resilience of their customers, employees, citizens and communities at the individual household, segment, provincial and national levels, while helping to shape policy, strategy and interventions to build financial resilience over time.

 

    • The Index can help Government, FIs and other organizations to understand the impacts of Covid-19 and other financial stressors and shocks impacting households, and shape policy responses and strategies to help build stronger financial resilience at the individual and national level, so people can manage and weather future shocks.
    • FIs, wealth providers, insurance companies, fintechs and organizations supporting financial services can better understand the financial health needs, stressors, goals, behaviours, sentiments and pain points of target customers and measure and track their financial resilience over time – as well as their performance in customer financial wellness support.
    • Identify opportunities for nudging, targeted support, product and service financial-health re-invention, customer engagement, product or service development – including at key points of the customer journey.
    • Create enterprise-wide (or business-line or customer segment specific) financial wellness strategies, value propositions, customer experiences and programs, to help maintain or improve financial resilience and dial-up impact.  Our Seymour team has 20+ years in leading this work and helping to translate insights into strategy, and strategy into execution. We also provide end-to-end project management support through our expert team.
    • We can help create or augment proprietary financial health index models, including based  on banking or customer transactional data. These models can also be harnessed in conjunction with the Seymour Financial Resilience Index TM to understand differences between reported and actual behaviours and/or to support enhanced predictive modelling and analytics: to inform strategies, credit and risk management, CRM and portfolio management.

    The Index enables Government, Policy Makers, Employers, Businesses and other organizations to understand, measure and proactively support household financial resilience in Canada, including those who are more vulnerable and in need of support. This includes for the key resilience segments: with people moving between segments over time, and needing more support at different times in their lives – or through key touch points during their banking relationship.