About the Seymour Financial Resilience IndexTM
What the Index Measures
The Seymour Financial Resilience Index TM measures a household’s ability to get through financial hardship, stressors and shocks as a result of unplanned life events. It measures household financial resilience (and vulnerability) for Canadians and bank customers at the national, provincial, segment and individual household level, across nine behavioural, sentiment and resilience indicators.
The Index also tracks the financial resilience of Canadians who have and haven’t been affected by job losses and/or reduced hours as a result of the pandemic, and who have and haven’t accepted Financial Institution [FI] loan and mortgage deferral programs as a result of facing hardship, as well as many other aspects.
Seymour Consulting launched the Index in May 2020, with the Index baseline based on February 2020 data, prior to the pandemic affecting Canada. The Index builds on four years’ of national financial health data analysis from our national independent Financial Well-Being studies dataset. The index can be used by Governments to help inform its economic and social policies, including which households and communities need more targeted support through the pandemic and beyond.
The Index also measures the financial resilience of the Big 5 bank customers (TD, BMO, HSBC, CIBC and Scotiabank) and Desjardins right down to the individual customer level, leveraging non-traditional data, and with the financial resilience score serving as an augmentation and complement to customers’ credit scores and other data.
Please contact us for more information or a consultation on how the Index, scoring and analytics can support your organization.
Application and Benefits
For more information on benefits for Financial Institutions, Governments and other organizations click here
Access the Seymour Financial Resilience Index, our benchmark data and services to support your decisioning, strategy and impact.
Financial Institutions, Government and other organizations can apply the Index and Financial Health Index studies data insights and our services to help measure, score and understand the changing financial resilience (and vulnerabilities) of their customers, portfolios, employees, citizens and communities – to inform strategies, innovation and programs at the enterprise, provincial, segment and individual household level.
Our Index data and analytics can be combined with banking and transactional data, and insights combined with strategies and tangible action plans. This helps transform the way you engage, serve and support your customers from a holistic perspective and across the spectrum of daily financial management, saving planning and investing, debt and credit management and protection/ insurance.
Financial resilience segment population size as of June 2020
Index Development Process and Model Strength
The Index was developed through an iterative process to regressing and evaluating over 30 potential indicators against self-reported “financial resilience” or “financial stress” measures using the multiple linear regression technique. In the end, nine variables were determined to account for 64 percent of the variance in the financial resilience construct. In social sciences, a R-squared of 0.64 is considered to be a strong model.
The regression model was validated against 2017, 2018 and 2019 survey data, which revealed consistency in results, represented both by a strong R-squared as well as similar weights of the independent variables as predictors of financial resilience (note: weightings for the model are based on their overall contribution to the dependent variable in the model and are not equal).
Based on 2017 and 2018 FHI data, six out of the nine index model independent variables were available, and in the 2019 FHI data 7 of the independent variables were available. All 9 variables including the composite variable are available based on the 2020 FHI data for February 2020.