It’s a Brave New World: Harnessing the Power of Consumer Data to Improve Financial Health

It’s a Brave New World: Harnessing the Power of Consumer Data to Improve Financial Health

As part of their “Taking the Financial Pulse of America” blog series, the Financial Health Network (a Flourish portfolio company) released their latest article on Medium titled, “It’s a Brave New World: Harnessing the Power of Consumer Data to Improve Financial Health.” The entry focuses on the important role that data plays in improving consumers’ lives.

“While there are some risks to sharing data online, with the right safeguards in place, consumer data can provide powerful insights into people’s financial lives that financial service providers can use to develop products, programs, and solutions to improve their customers’ lives,” it notes.

They plan to use this important consumer data to:

Develop a measurement framework that companies can use to assess their customers’ financial health using their own transactional and account data. Companies can leverage this framework alongside the FinHealth Score™ to gain nuanced, granular insights about their customers’ financial health and how it’s changing over time. Providers can also leverage this framework to analyze whether a new product or service is making a meaningful difference in their customers’ financial lives.

Release ongoing, nationally representative insights about financial health in America. Together with insights from annual benchmarking surveys, we will analyze these data to better understand how people are spending, saving, borrowing, and planning. Eventually, these data may also help us understand how certain events (such as a natural disaster) impact the financial health of the people affected. Financial service providers can use the measurement framework to assess their own customers’ financial health against these national and regional benchmarks.

The U.S. Financial Health Pulse is made possible through a founding partnership with Flourish, a venture of The Omidyar Group. Additional support is provided by MetLife Foundation, founding sponsor of the Financial Health Network’s financial health work, and AARP. The University of Southern California Dornsife Center for Economic and Social Research is fielding the study to their online panel, the Understanding America Study.

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