Revolutionising how banks identify and support vulnerable customers

Background

Serene is a fintech company that aims to integrate advanced technology, scientific expertise, and a deep understanding of human vulnerabilities, to create a serene financial experience. They aim to revolutionise how banks identify and support their vulnerable customers through reshaping the industry and fostering long-term consumer financial wellbeing.

The company was born from CEO Savannah Price’s personal experience supporting her sister through mental health challenges where it became apparent that irregularities in financial behaviour signalled deeper issues and complexities related to mental health issues.

Savannah recognised the need for a solution that could help financial institutions identify and support customers grappling with the more “invisible” vulnerabilities like poor mental health and changes in life circumstances.

The Journey

Interface initially supported Serene with a student project with the University of Aberdeen focussing on the correlation between spending behaviour and mental health. Interface then linked them into the TSB Labs accelerator programme, this helped them refine and test their value propositions to solve strategic TSB opportunities. It gave them a chance to work with business sponsors, pitch their propositions to senior leaders, run a proof of concept and launch their proposition with TSB customers.

Interface was tasked by Serene to identify academics that could help create a first-of-its-kind Machine Learning-enabled early identification system for poor mental health & financial vulnerability. This would develop further thinking and provide evidence around the linking of poor mental and financial health through accessing and analysing synthetic, open banking and health data.

Interface linked Serene with Dr Marcel Lukas from the University of St Andrews who brought significant expertise in financial wellbeing, data analysis, and experience working with fintech start-ups to this project, especially his research into budgeting and expense prediction using open banking data. Similarly, the project analysed synthetic and real consumer transaction data provided by Smart Data Foundry and the Serene Community. The collaboration was funded by the Interface-led Inward Investment Catalyst Fund.*

* The Scottish Inward Investment Catalyst Fund launched by Interface and the Scottish Government promotes Scotland as a leading destination for inward investment and supports businesses not yet located in Scotland but seeking to establish stronger ties with academia here. As well as funding research and development it provides an opportunity for the company to establish relationships and give insight into other aspects of the Scottish landscape, such as further investment opportunities, supply chains and the skills base to strengthen the case for investing in Scotland.

The Challenge

The Financial Conduct Authority (FCA) defines a vulnerable customer to be someone who, due to their personal circumstances, is especially susceptible to harm, particularly when a firm is not acting with appropriate levels of care. According to FCA, more than half (53%) of adults in the UK display indications of potential vulnerability, yet service providers only recognise a mere 3% of these cases (FCA,2023). Since 2020, the FCA has issued circa £2 billion in fines for firms’ mistreatment of vulnerable customers that were not identified. To safeguard potentially vulnerable consumers effectively, consumer finance firms must identify such individuals and obtain a comprehensive understanding of their circumstances in real time which remains a critical challenge for financial firms that currently lack effective and inclusive tools to identify and support their vulnerable customers. This is especially pertinent with the FCA’s new consumer duty rolled out in June 2023, where financial firms face increasing regulatory pressure to do right by their vulnerable customers. Without the correct tools to do so, they are at risk of huge financial and reputational damage.

The Solution

In response to this, Serene is developing a proprietary tool to facilitate better identification of vulnerable customers through a suite of machine learning algorithms. It aims to empower financial firms to offer personalised interventions based on consumers unique needs and circumstances. Unlike existing solutions, Serene’s analytics function continuously, and in real-time – a core differentiator, as well as taking a more proactive and predictive approach. By combining financial and mental health insights, Serene will revolutionise how banks identify and support their vulnerable customers, reshaping the industry and fostering long-term consumer financial wellbeing. The project focuses on the identification of financial ‘biomarkers’ indicative of mental health vulnerabilities. In addition, the output of this project will inform the opportunities and challenges in developing financial data-driven interventions to support vulnerable consumers.

Dr Lukas and his team at St Andrews University applied theoretical frameworks from his academic research on financial behaviour analysis to develop novel approaches for vulnerability detection. His expertise in analysing open banking data patterns, developed through years of academic research, was instrumental in enabling Serene to identify key vulnerability areas under the three FCA defined categories of Health, Life Events & Financial Resilience and created a framework to understand the financial nature of each vulnerability. They went on to develop a Vulnerability Impact Analysis Framework to create a relationship model between vulnerabilities and financial behaviours, developed the Serene Score and a secure web portal to upload and analyse real financial data leading to the development of algorithms and software for analysis proving Serene’s concept and resulting in an evidence-based vulnerability identification model.

The Benefits

Company Benefits

• The insights and methodologies gained from this project have equipped Serene with a solid foundation to build their models and introduce them to the market with greater confidence.
• Proved the concept for developing financial data-driven interventions to support vulnerable consumers.
• The outcomes of this project will help Serene attract and invest in top talent, unlock access to anonymised real longitudinal financial data and in turn develop a cutting-edge solution and gain a competitive edge in the market.
• Without Inward Investment Catalyst Funding Serene would not have had the resources to secure Dr Lukas’s time and leverage his extensive experience and expertise.
• The project demonstrates successful knowledge transfer from academic research to industrial application, particularly in translating theoretical understanding of financial behaviour patterns into practical vulnerability detection tools.
• Has led to Serene joining the NatWest Accelerator Programme in 2023 and securing a minority investment from Natwest. The partnership has the potential to refine the bank’s existing models, improve customer insights and financial support. Natwest’s expertise and insights have the potential to help Serene grow and scale at speed.

Academic Benefits

• The collaboration with Serene has provided valuable real-world validation of theoretical frameworks developed through academic research. Dr Lukas’s research into financial vulnerability detection has been enriched by insights from this industrial application, leading to new research directions in behavioural finance and financial technology.
• The project has also strengthened the University of St Andrews’ position as a leader in applying financial research to solve pressing societal challenges.

The Next Steps

• Serene aim to implement the results of this project by developing an Application Programming Interface (API) that will be accessible to financial institutions.
• Through this API, customer accounts at these institutions will be analysed by the Serene solution and will provide indications if any vulnerabilities are detected in the customer accounts analysed.
• Using the API, financial institutions can integrate it into their systems and proactively identify potential vulnerabilities or risks associated with their customers’ accounts. This will enable them to take appropriate actions to mitigate risks and safeguard their customers’ financial well-being.
• Explore further opportunities for collaboration with Dr Marcel Lukas
• Advance Serene’s analytics capabilities.

Background

Therme Group is an industry leader in the wellbeing sector with multiple major water-based wellbeing facilities throughout Europe with new facilities in the UK and Canada under construction.

Therme’s guiding philosophy is “Wellbeing for all” which delivers a holistic approach to wellbeing and includes a social outreach dimension to make the facilities available to all of the community in the city regions where they have sites. This holistic approach encompasses the aesthetics and design of the built environment, the impact of the water based, and other wellbeing treatments offered and extends to nutrition and the sources of food offered on site.

Therme UK has plans to open a major new £125M facility on the Clyde serving as the regional centre in Scotland to deliver Therme UK’s 90:90 UK access strategy. This seeks to position Therme facilities such that 90% of the UK population are within 90 minutes’ drive of a Therme facility.

The Challenge

Therme Group have five main guiding principles and areas of focus around which they build their business model and facilities. These are Health, Equity, Security, Learning and Environment. In each case they are interested in strategic research partners that can help Therme as a group deliver improved operational delivery, minimise environmental impact and ultimately improve customer experience.

They have developed subject specific strategic research & development (R&D) relationships with the University of Florence for the built environment and in Scotland they have supported research activity in the University of Glasgow and James Hutton Institute (Dundee) developing frameworks of wellbeing and food technology respectively.

The collaboration facilitated by Interface came about from the combination of a planned major facility in Glasgow and the recognition of the strength in the University of Glasgow in four key areas of research, Wellbeing Research, Informing Policy, Wellbeing Technology and Environmental Technology directly relevant to Therme’s long term needs. This led to a feasibility study, supported by Interface, which provided an evidence base for exploring the creation of a global Centre of Wellbeing Research Excellence (WellEX) in Glasgow.

The Solution

Interface made initial introduction and discussions between Therme Group and the University of Glasgow who successfully applied to the Inward investment Catalyst Fund to support a WellEX feasibility.

The basis of the feasibility study was to raise awareness of the opportunity and develop connections between senior management at the Therme Group responsible for Innovation and the relevant Business, Social Science, Health and Technology academics and departments within the University. In particular, the feasibility exercise and subsequent discussions identified four areas of future collaboration where Therme’s interests and the University of Glasgow’s expertise aligned.

These included:

Wellbeing innovations: Therme Group is primarily interested in understanding how wellbeing improvement can be brought about for individuals and populations, and the broader benefits of wellbeing on society, the economy, and the environment through evidence-based research.

Informing policy: Through close collaboration with the local government and communities, the research conducted by WellEX is expected to support the work of the University of Glasgow to explore, validate, and inform wellbeing strategies and policies at the local and national levels, working to understand the complexity of policy intervention.

Wellbeing technology: To explore, develop and test “wellbeing technology” focused on improving the effects of wellbeing innovations and users’ experience within and outside Therme Group sites.

Sustainability practices: To explore and validate sustainability practices for Therme wellbeing activities and facilities to leverage renewable energy sources and reduce carbon emissions.

The feasibility study validated the concept of a Global Centre of Excellence, providing an evidence base for a Business, Energy and Industrial Strategy (BEIS) funding application in 2022 and ongoing funding applications.

The findings showed that the University of Glasgow was well placed to both anchor and act as an international R&D hub for Therme’s aspirations to develop a world-class centre of excellence in wellbeing. The planned development of a major new facility in Glasgow, serving the Scottish population catchment area, offers a unique opportunity to create such a WellEX and capture the significant research, societal and economic benefits this would bring to Scotland.

The University of Glasgow are commited to developing this proposition further and presenting a full business case for consideration by Therme Group, the University, and strategic partners such as Glasgow City Council and Scottish Government agencies, including Scottish Funding Council (SFC), Scottish Development International (SDI), and Scottish Enterprise (SE).

The Benefits

• Validated the concept of a Global Centre of Excellence to be based in Glasgow, providing an evidence base for a BEIS funding application in 2022 and ongoing funding applications.
• Development of a much deeper relationship with Therme Group as partners on wellbeing which can be developed further as the new Glasgow facility is built.
• Development of a cross disciplinary working group in Glasgow in response to Therme’s interest and catalyzed by the Interface report. This cross disciplinary group is currently developing funding applications around the theme of healthy ageing.
• Potential to generate a strategic new initiative at the institutional level by encouraging the University of Glasgow for the first time to carry out a strategic review of all its wellbeing research strengths across all disciplines for Therme Group as a serious industrial partner.
• The WellEX initiative has the potential to generate significant new jobs and economic activity in Glasgow, provisionally estimated between 10-20 net additional FTEs.
• This collaborative research also aligns well with the developing Wellbeing Economy policy of the Scottish Government.

This project benefitted from the Scottish Inward Investment Catalyst Fund. The Scottish Inward Investment Catalyst Fund launched by Interface and the Scottish Government promotes Scotland as a leading destination for inward investment and supports businesses not yet located in Scotland but seeking to establish stronger ties with academia here. As well as funding research and development it provides an opportunity for the company to establish relationships and give insight into other aspects of the Scottish landscape, such as further investment opportunities, supply chains and the skills base to strengthen the case for investing in Scotland.

Background

Smartify is a tech company originally based out of London.  It has developed an online platform serving the arts, culture and heritage sector, connecting destinations with their visitors. It provides cultural institutions with cutting-edge digital capabilities to manage the visitor experience; and at the same time, it acts as a platform to help them reach a broader audience. Smartify currently has a reach of over 4 million users as of June 2023.

The Challenge

Smartify was looking to develop its XR (Extended Reality) infrastructure to allow the company to develop experiences which could be easily scaled in a cost-effective manner and across multiple platforms (iOS, Android and Web).  Smartify were needing to develop a novel XR platform to be integrated within the Smartify app. They were looking for academic expertise in AR/VR/XR but also an understanding of the tourism and heritage sector.

The Solution

Smartify were already an active member of the Travel Tech for Scotland (TTfS) community with a strong customer base including Scottish National Galleries, Kelvingrove, National Museums of Scotland, Blair Castle, Highlife Highland, and National Trust for Scotland. 

Lesley Judge of TTfS referred Smartify to Interface who made them aware of the *Inward Investment Catalyst Fund. Through Interface’s search and matchmaking services, Smartify were introduced to Dr Marco Gilardi from the Division of Computing at the University of the West of Scotland, who has a wealth of experience in AR/VR/XR and has been part of an academic group providing knowledge exchange on this subject for the tourism and heritage sector. 

The project aimed to support the company in developing XR applications using web technologies and, in the process, help them develop their market presence in Scotland. The objective of the project was to develop proof of concepts and test them with the market which was achieved successfully with a commercial project delivered as result. 

*The Inward Investment Catalyst Fund has been set up by Interface and the Scottish Government to attract and support businesses, not yet located in Scotland to collaborate with academic institutions on their research and development activity to strengthen the case for developing a base in Scotland. 

The Benefits

For the Company

• Development of prototype IP leading to continued building of tech infrastructure and creative pipeline
• Helped Smartify create a clear tech capabilities roadmap and strategy through a better understanding of the existing technology landscape, capabilities, limitations and opportunities
• Enabled a pipeline of projects and helped secure a further contract with major Scottish National cultural institutions.

For the University

• Established a sustained and strategic partnership with an innovative tech company 
• Supported a PhD student to gain hands-on industry experience 
• Has led to further knowledge transfer activity namely an Accelerated Knowledge Transfer to Innovate Project and a further Knowledge Transfer Partnership 

For Scotland

• Smartify have set up a Scottish division, creating two new jobs and they have projected that this will double annually over the next three years

Background 

Ecomar Propulsion Ltd is based in Fareham on the South Coast of the UK and was first registered in 2019.  Ecomar Propulsion Ltd is involved in the research, development and production of high performance electric and hybrid hydrogen marine propulsion systems. 

Their team of highly skilled engineers and technical experts are working to reduce global emissions by creating high efficiency, high output marine engines and energy storage solutions. The company only works with fully clean electric systems to allow current vessel owners the opportunity to seamlessly transfer to clean marine or new build yards to offer electric vessel options. 

Ecomar Propulsion produces two products for clean marine vessels; outboard systems and inboard systems powered by battery and hydrogen with a company aspiration of removing 10 million tonnes of toxic exhaust fumes from the marine environment within 10 years. 

In 2021 the company increased its workforce to 8 staff and then to 12 by Jan 2023, with further expected growth.  The company has been recognized with several awards from the Maritime UK (Solent) Clean Marine Innovator and Maritime UK Diversity Champion Finalist 2022 through to SETSquared University Network Award for Environmental Impact 2022. 

The Challenge 

The business challenge for Ecomar Propulsion arose when their manufacturer of hydraulic rams in the Far East ceased supply of their products. This left a significant challenge for Ecomar Propulsion but also an opportunity for the company to look at developing their supply chain within the UK.  Another requirement was to ensure the materials being used are as environmentally sustainable as possible from a circular economy perspective. 

The Solution 

Scottish Enterprise introduced Ecomar Propulsion to NMIS, and as a result of their interest in developing a Scottish supply chain and bringing production to Scotland to overcome a global supply chain issue of electric outboard motors, they were eligible to apply for the Inward Investment Catalyst Fund to support activity.  The Inward Investment Catalyst Fund supports businesses not yet located in Scotland but seeking to establish stronger ties with academia here.  As well as funding the research and development it provides an opportunity for the company to establish relationships and give insight into other aspects of the Scottish landscape, such as further investment opportunities, supply chains and the skills base to strengthen the case for investing in Scotland. 

The teams at NMIS and University of Strathclyde developed their understanding of the design and manufacturing parameters to find replacement components that would be robust enough for the extreme demands of the marine environment.   Research and outreach were carried out with companies specializing in hydraulic production in Scotland.  Further discussions with selected companies are taking place to develop future alternatives to current suppliers in order to close the gap in the market and provide consistency of supply. 

The Next Steps 

This project has allowed Ecomar Propulsion to better understand the work of NMIS and the University of Strathclyde and how the skills of the teams can allow Ecomar to plan further growth in Scotland and engage with the wider available supply chain.  

Whilst an immediate supplier for marine hydraulic rams was not found, the team have introduced Ecomar Propulsion to several companies which they would not have met had they not taken part in this project. Through meeting senior members of the academic community, potential further opportunities have been identified to explore additional supply chain introductions and manufacturing routes in Scotland for Ecomar Propulsion’s full product range.  

Continued collaboration will be facilitated with the Head of Electrification Manufacturing Programmes at NMIS, and allow Ecomar Propulsion and NMIS to engage with Scottish Government and Scottish Enterprise in relation to future facility planning and supply chain partnerships. Additionally, opportunities will be aligned with the University of Strathclyde’s strategic direction in electrification manufacturing, notably in PEMD (power electronics, machines and drives) through DER-IC Scotland (Driving the Electric Revolution Industrialisation Centre), ensuring that expansion of capabilities is informed and driven by industry requirements. 

This project benefitted from the Scottish Inward Investment Catalyst Fund.  The Scottish Inward Investment Catalyst Fund launched by Interface and the Scottish Government promotes Scotland as a leading destination for inward investment and supports businesses not yet located in Scotland but seeking to establish stronger ties with academia here.  As well as funding research and development it provides an opportunity for the company to establish relationships and give insight into other aspects of the Scottish landscape, such as further investment opportunities, supply chains and the skills base to strengthen the case for investing in Scotland.

Evolve™ green energy technology is the first hydrogen electrolysis solution that can extract hydrogen from any natural water source including groundwater, tap water, and seawater, without desalination. 

Background 

Evolve Hydrogen Ltd wants to develop novel Proton Exchange Membrane (PEM) electrolyser technology to produce “green” hydrogen for use in industrial processes. This innovation unlike the traditional flat-stack designs of common PEM and alkaline electrolysers is designed in a honeycomb configuration with reactive parts placed in a concentric layout. The reactive parts are fabricated via injection moulding of a custom polymer which allow this technology to utilise impure water sources. 

The Challenge 

In developing their technology Evolve Hydrogen Ltd required a bespoke polymer material that enabled direct electrolysis of impure water sources, for example, seawater without the need for desalination. Optimisation of this material required a thorough understanding of its electrochemical performance and transport mechanism in various electrolysis environments. To improve the efficiencies of their prototypes this project required electrochemical engineering expertise to give a full characterisation of the polymer raw material and to recommend improvements in composition to advance Evolve™ technology. 

The Solution 

Evolve Hydrogen Ltd sought the expertise of the University of Strathclyde to perform this project based on recommendations by their technical advisors, two of whom were alumni of Strathclyde University.  Funding provided by Interface’s Inward Investment Catalyst Fund permitted the material characterization of the original polymer and suggestions for efficiency improvements to be carried out by the University of Strathclyde. 

Evolve Hydrogen Ltd provided samples and previous technical data to the University’s research staff, who performed the physical and electrochemical characterisation required as part of Evolve’s aim to achieve TRL 4 (Technology Readiness Level) status. Dr Edward Brightman and his team of electrochemical engineers used their expertise to create a specialised test cell. They also demonstrated the knowledge and the flexibility to adjust the research scope to address new questions of the materials being analysed.   

The work performed by the team of electrochemical engineers successfully characterised the original polymer material and suggested material and dimensional changes to improve the efficiencies of Evolve Hydrogen’s technology. 

The Future 

Evolve Hydrogen Ltd is committed to working with the University of Strathclyde because of their demonstrated level of professionalism, knowledge, creative thought, and the working relationship that has been established.  The University, the Power Networks Demonstration Centre (PNDC), and their industrial partners plan to collaborate for the testing of future prototypes and the fabrication of Minimal Viable Products for Evolve Hydrogen’s demonstrations.  They are seeking joint funding together to support an R&D pathway towards commercialisation in Scotland. 

The Benefits 

• The benefit of this project is to further the development of a novel green hydrogen production technology and to commercialise the technology in Scotland.  

• Decarbonization of transportation and many industrial processes with the integration of Evolve’s technology throughout Scotland.   

• Development of future strategic partnerships with key industry players in manufacturing, polymer production, and hydrogen end users such as offshore wind farms, utilities, and the transportation sector. 

• With the global demand for electrolysers far exceeding the supply Evolve see a tremendous growth in exports of their technology for Scotland starting in 2024. 

This project benefitted from the Scottish Inward Investment Catalyst Fund.  The Scottish Inward Investment Catalyst Fund launched by Interface and the Scottish Government promotes Scotland as a leading destination for inward investment and supports businesses not yet located in Scotland but seeking to establish stronger ties with academia here.  As well as funding research and development it provides an opportunity for the company to establish relationships and give insight into other aspects of the Scottish landscape, such as further investment opportunities, supply chains and the skills base to strengthen the case for investing in Scotland.