Benefits of Measuring Financial Health and Resilience
Benefits and Applications for Financial Institutions, Government and other Organizations
Our Index Release report and Applications document available for download on this page highlights why we created the Index for Canada and some of its applications for Financial Institutions, policymakers, Employers, non-profit organizations and other organizations focused on the financial success, health and resilience of their target populations.
Why should Financial Institutions and Lenders use the Index?
Better prepare for cyclical downturns and support your customers facing financial vulnerability and hardship in more targeted way: through the pandemic, planned and unplanned life events and their customer relationship.
Assess loan portfolio and vulnerability more accurately: the Index provides a new lens to evaluate the quality and resilience of portfolios at any point in an economic cycle.
Refine and create more nuanced credit, marketing and origination strategies: for example by offering more favourable terms or pre-approvals for Financially Resilient customers.
Better estimate loss loan provisions: by actively managing the financial resilience distributions of your customers and portfolios, lends may improve capital coverage; enhance stress testing and credit and risk decisioning, with the financial resilience score augmenting other credit and risk decisioning models.
Enhance your analytics, predictive modelling and opportunities to better understand and help improve the financial resilience, health and stress/ wellness of your customers, integrating financial resilience scoring and other solutions within your credit and loan application, renewal and customer experience touch-points: for example through financial health checks. Financial resilience segmentation and customer understanding can also support marketing campaigns and offers for prospective and existing customers.
Gain performance tracking: on the extent to which your financial institution or company is helping to improve the financial resilience and wellness of your customers over time, and the business benefits of these investments – in terms of growing share of wallet and brand advocacy.
Strengthen your community impact: linking outcomes measurement to wider social impact outcomes, including linked to the mental, emotional and physical well-being of individual customers, employees, families, small businesses and the communities you serve. The Index can also help you target your community impact initiatives for more vulnerable populations, and also be used to measure the financial resilience of non-borrowing customers, including new immigrants and others.
Differentiate your brand: with insights on your customers’ needs and pain points highlighting opportunities to better support them, through engagement and an enhanced financial wellness-focused customer experience.
For Federal and Provincial Governments:
The Seymour Financial Resilience Index TM can be harnessed to drive positive social impact, including by Government and for non-profit and other organizations looking to support Canadians who are most financially vulnerable. It measures and tracks the financial resilience of Canadian households over time, and aspects related to the connection between financial well-being and overall personal well-being, and challenges and opportunities with relation to ways to build income equality and financial health and resilience for all.
Our data and Index brings new understanding and measurement on the extent to which Covid-19 Government supports and other programs are helping to improve the financial resilience of Canadians and key segments, while improving financial security, financial health and financial well-being. This includes for more vulnerable populations, and for people and small business owners impacted by reduced hours or job losses as a result of the pandemic impacts on households and our economy.
For Other Businesses:
Utility, telecom and other businesses can lever the Index to understand the financial resilience (and vulnerability) of their customers and communities. This can help them with their pricing strategies, new product and service development, and community impact initiatives, including for more vulnerable customers or populations.
Employers can score and understand the financial resilience of their employees, and the proportion of employees that are less engaged or productive at work, or facing mental or physical health challenges, as a result of financial stress and/or financial challenges in their household. This can help inform and complement employee financial wellness strategies and programs, including to boost productivity and engagement, knowing that financial stress has a big impact for many employees.
For Credit Counselling and Financial Help Organizations:
The Index and complementary FHI data also shines a light on how credit counselling agencies, financial help organization and other social enterprises can have increased impact with the customer or populations they serve, including for more financially vulnerable populations and those facing systemic barriers.
We are also leading many customized strategy and innovation projects to help organizations to improve the financial resilience and well-being of their customers at scale. Please contact us to schedule a consultation and tell us more about your needs.