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The Future of Financial Advice: Consumer Expectations for 2025 and Beyond

The Financial Advice Consumer Survey 2025, conducted by Scottish fintech Aveni in collaboration with YouGov, highlights key trends shaping the future of financial advice in the UK.

With rising concerns about financial security, regulatory demands for enhanced consumer protection, and the increasing role of artificial intelligence (AI) in financial services, this report highlights the areas where financial firms must innovate to stay ahead.

There full survey can be found here.

Key Findings from the Survey

Consumers Demand More Personalised and Accessible Advice

A growing number of consumers expect financial advice to be tailored to their specific needs rather than generic recommendations. According to the survey, many individuals feel underserved by traditional financial advisory models and are looking for more dynamic, AI-driven solutions that provide real-time insights.

Trust in Financial Advice is at a Crossroads

Trust remains a critical issue in financial services. While robo-advisors and digital platforms are gaining traction, many consumers still prefer human interaction for major financial decisions. (42% of respondents expressed concerns about receiving financial advice solely from AI-powered tools).

AI and Automation are Reshaping Financial Advice

AI is playing a larger role in financial planning, from analysing spending habits to recommending investment strategies. However, consumers have mixed feelings about relying solely on AI-driven solutions.

Regulation and Consumer Protection are Driving Change

As regulatory bodies push for greater consumer protection, financial firms must adapt to new compliance standards. The Consumer Duty Act, for example, is set to reshape how firms engage with customers, ensuring fairer outcomes and more transparent advice. (72% of respondents stated they want clearer explanations of financial products and risks).

Rising Financial Anxiety and the Need for Proactive Guidance

Economic uncertainty, inflation, and concerns about long-term financial stability are leading consumers to seek proactivefinancial guidance rather than reactive advice.

What Does This Mean for Financial Firms?

The findings highlight several key takeaways for financial firms and advisors:

  • Embrace AI-powered financial tools while maintaining a human-centric approach.
  • Increase transparency around fees, data usage, and product recommendations.
  • Develop digital-first advisory models that cater to on-demand financial guidance.
  • Improve consumer education to enhance engagement and financial confidence.
  • Stay ahead of regulation by prioritising customer outcomes and compliance.

Read the full report here.

Generative AI, Blockchain & Beyond: The Trends Defining Fintech’s Next Era

Block written by Kristiana Sylvester, Client Services Associate at fintech  TreasurySpring.

The fintech landscape is evolving at lightning speed, fuelled by pioneers embracing cutting-edge technologies to transform financial services. From democratising cash investments to revolutionising payments and lending, start-ups are breaking down barriers and redefining access to financial resources. Whether you’re a budding entrepreneur launching a fintech venture or an investor seeking the next big breakthrough, staying ahead in this dynamic space means staying informed, adaptable, and innovation-ready. Let’s dive into some key trends driving the fintech revolution.

Generative AI: Revolutionising Financial Services

Generative AI is reshaping industries, and fintech is no exception. By driving innovation in customer interactions, decision-making, and operational efficiencies, AI is enabling firms to outperform competitors and redefine benchmarks. Intelligent chatbots and automated decision-making are just the beginning. According to Gartner, 80% of financial firms are expected to adopt AI by 2026, with investments projected to reach $118 billion by 2032[1]. This rapid adoption is empowering institutions to deliver hyper-personalised solutions, improving both customer satisfaction and financial outcomes.

Blockchain: Disrupting Banking and Lending

Inefficiencies have long plagued core banking services such as loans, mortgages and payments. Enter blockchain, a technology streamlining operations, reducing counterparty risks, and accelerating settlement times. By enabling secure, real-time verification of KYC/AML data and financial documents, blockchain minimises operational risks and simplifies credit scoring. Furthermore, the digitisation of assets facilitates real-time collateral management and regulatory compliance. Major players like PayPal, Mastercard, and American Express are leading this disruption, proving that blockchain is more than just a buzzword—it’s a game-changer.

Democratising cash investing 

Gone are the days when premium investment opportunities were reserved for institutional players. Fintech platforms and mobile apps now empower individuals and smaller firms to invest excess cash efficiently, bypassing traditional intermediaries like brokers. With streamlined onboarding and access to niche products, users can monitor portfolios in real time, minimising risk, and maximising returns. This shift to direct control over investments is transforming cash management and enabling businesses to operate like sophisticated financial institutions.

Our company, TreasurySpring, is a good example of this this democratisation by providing unparalleled access to highly rated cash investments called “FTFs” (Fixed-Term-Funds) via an intuitive digital platform. It unlocks access to governments, investment-grade banks, and corporations, spanning multiple currencies. TreasurySpring simplifies cash management for entities ranging from FTSE 100 firms to start-ups and enables clients to manage liquidity with the same sophistication as large institutions.

Reinvention as the Key to Longevity

The fintech space is a constant race to innovate. For companies, success hinges on reinvention—shifting from one growth curve to the next before stagnation sets in. However, only a handful of companies manage to make this leap successfully when the time comes, often because they initiate the reinvention process too late. According to Accenture, the pace of change has surged 183% since 2019, and 83% of organisations have accelerated transformation efforts in response[2]. By adopting emerging technologies and fostering a culture of adaptation, businesses can not only survive but thrive in this fast-changing environment.

[1] https://www.gartner.com/en/documents/4726631

[2]https://www.accenture.com/us-en/insights/consulting/total-enterprise-reinvention

How Financial Regulation is Evolving: Insights from the Beyond The Capital Podcast

OUT NOW: Beyond The Capital from SuperTech WM has launched a special four-part podcast series about the Financial Regulation Innovation Lab. SuperTech has partnered with Fintech Scotland for the Lab, which is an industry led collaborative research and innovation programme, helping to shape the future financial regulation in the UK.

Join presenter Hilary Smyth-Allen as speaks to a wide range of guests from across the programme exploring the impact of Consumer Duty on the financial services sector and their experiences within the FRIL programme.

First up is Lorraine Breese-Price, the Chief Customer Officer of Dudley Building Society in episode one. They discuss the challenges and opportunities that Consumer Duty poses for building societies, including: the alignment of Consumer Duty with the mutual ownership model, the challenges of legacy systems within building societies and how building societies’ focus on ethical values can attract younger customers.

Episode two sees the conversation focusing on the roles of credit unions in the context of Consumer Duty and the integration of technology to enhance services for vulnerable customers. Helen Toft, a Non-Executive Director at Advance Credit Union in Birmingham, and Elizabeth Campbell, the General Manager at Castlemilk Credit Union in Glasgow, share their experiences and insights on the challenges faced by credit unions, the importance of collaboration with FinTech’s, and the need for innovative solutions to improve customer journeys. They emphasise the intrinsic alignment of consumer duty with credit union values and the potential for technology to enhance accessibility and support vulnerable members.

In episode three we are joined by experts Ben Hampton, CEO of Wealth Wizards, and Professor John Finch of Glasgow University, where John is the lead for the Financial Regulation Innovation Lab project. They explore how the Consumer Duty aims to improve customer outcomes, the challenges faced by consumers in accessing financial advice, and the importance of engaging younger generations like Gen Z. They also discuss the potential for innovation within the regulatory framework and the impact of technology, including AI, on the future of financial services.

Concluding with episode four, Rachel McGowan, CTO of Moneyline, discusses the impact of Consumer Duty on Community Development Finance Institutions (CDFIs) – how the role of CDFIs in providing financial services to low-income households, the alignment with Consumer Duty regulations, and the importance of collaboration with FinTech’s to improve customer outcomes. Rachel shares insights on the challenges faced by financially excluded customers and the innovative solutions being developed to address their needs.

Listen to the full series here.

Accelerating Action: celebrating International Women Day

This blog was written by Lauren Cassells, Research & Innovation Programme Manager at FinTech Scotland and Charlotte Moir, Account Manager at BT Business.

Welcome to the first edition in our series of spotlights celebrating colleagues who are inspiring change and Accelerating Action across the technology sector.

Accelerating action is the theme of International Women’s Day 2025 and one which we here at FinTech Scotland and BT feel extremely passionate about.

International Women’s Day, taking place 8 March, strives to deliver collective action and shared ownership for driving gender parity. With this campaign we are making it a year-long endeavour, spotlighting and shouting loud about the fantastic colleagues we are privileged to work alongside on a daily basis.

As individuals, we can all take steps in our daily lives to positively impact everyone’s advancement. We can celebrate success, question bias, support and champion diversity, and so much more. As we launch this campaign, we will be focused on highlighting and applauding those who are striving and growing, creating the future we hope for of through action.

The campaign will comprise a series of monthly blogs, as well podcast and discussion-based activities, shining a light on relevant insights and initiatives taking place across Scotland. As we look forward to the monthly themes, we are excited to be engaging with those who inspire us both personally and professionally in accelerating action.

As we kick off the campaign, we encourage you to nominate those that inspire you on a daily basis and that you would like to see celebrated in this campaign.

To nominate a colleague, please contact us.

January Spotlights:

Navigating Regulatory Risk Trends in 2025: Key Insights from Pinsent Masons

As we step into 2025, the financial services landscape faces a year of transformation, with regulators aiming to balance economic growth with robust consumer protection. In the latest edition of Pinsent Masons’ Financial Services Regulatory Risk Trends update, our strategic partner focusses on critical regulatory developments shaping the industry.

The Financial Conduct Authority’s (FCA) recently released a five-year strategy with a clear focus on resilience—both for consumers and financial institutions. This edition of Financial Services Regulatory Risk Trends explores the key regulatory shifts that firms should be aware of, particularly in relation to consumer and operational resilience.

 

Consumer Resilience: A Stronger Framework for Protection

The UK Government’s recent Call for Input on closer collaboration between the FCA and the Financial Ombudsman Service (FOS) marks a significant development in consumer protection. This initiative comes at a time when mass redress events—such as undisclosed motor finance commissions—are drawing considerable attention from both regulators and courts.

Additionally, firms must navigate the FCA’s evolving stance on the advice/guidance boundary and targeted consumer support, especially in light of rising customer complaints and the continued embedding of the Consumer Duty framework.

Operational Resilience: Strengthening Financial Infrastructure

Beyond consumer-focused regulation, 2025 will also see increased scrutiny of ‘critical third parties’—a move that introduces further regulatory requirements for firms reliant on outsourced services. These new measures will likely reshape the contractual landscape between financial institutions and their key service providers, reinforcing the need for robust operational resilience strategies.

 

Sector-Specific Interventions: Motor Insurance and Capital Markets in Focus

The motor insurance market is set for a period of regulatory intervention, with the launch of a competition market study and the establishment of a motor insurance taskforce. These initiatives aim to address concerns surrounding fair pricing and market competition.

Meanwhile, capital markets also face transformation with the arrival of PISCES, a new trading platform set to modernise the sector and enhance market efficiency. With regulators seeking to foster competitiveness while upholding market integrity, firms should anticipate further updates in this space.

Read the full report here.

Unlocking the Potential of AI in Finance: Insights from Hays’ Latest Research

The financial services sector is going through important changes driven by the increasing adoption of Artificial Intelligence (AI). According to the latest research from Hays, this shift is reshaping the way financial institutions operate, offering opportunities for innovation and growth. The report also highlights a critical gap: the need for advanced training and skills to fully harness AI’s potential.

AI’s Transformative Role in Financial Services

AI is no longer a concept of the future—it’s here, driving real-world solutions. Financial institutions are increasingly using AI to analyse vast amounts of data, offering personalised services to customers while optimising back-office processes. Machine learning, a subset of AI, plays a pivotal role in predicting customer behaviour, identifying trends, and automating tasks that were previously time-intensive.

Moreover, the use of AI in areas such as fraud prevention and regulatory compliance is becoming a game-changer. By detecting anomalies in real-time, financial institutions can protect their customers and build trust. As the technology matures, its applications are expanding into climate finance, open banking, and beyond.

The Growing Skills Gap

While the potential of AI is undeniable, Hays’ research identifies a pressing challenge: a shortage of skills within the sector. For organisations to fully embrace AI and leverage its capabilities, there must be a concerted effort to upskill existing teams and attract new talent.

The findings emphasise the need for a workforce that understands both the technical and ethical dimensions of AI. This includes data scientists, AI engineers, and professionals equipped to interpret complex outputs. Equally important are skills related to AI governance, ensuring the technology is used responsibly and inclusively.

Collaboration is key

The solution lies in collaboration. Businesses, academia, and policymakers must work together to bridge the skills gap. Initiatives such as targeted training programmes, partnerships with educational institutions, and support for lifelong learning are essential.

Scotland, a recognised leader in financial innovation, is well-positioned to take the lead. With a thriving cluster of fintech firms, universities excelling in AI research, and a supportive regulatory environment, the country is already a hub for fintech advancement.

Financial Regulation Innovation Lab – Exploring the intersection of quantum computing and the finance sector

As part of the 4th FRIL theme focusing on innovation to address financial crime, the FRIL team  along with Alliance for Research Challenge in Quantum Technologies (Quantum ARC) and Technology Scotland hosted a roundtable to explore and catalyse the opportunities present now and in the near-future between quantum computing and the finance sector.

The discussion spanned a broad range of topics at the intersection of quantum and finance, with various opportunities and risks highlighted. Within these opportunities and risks, the discussion emphasised the critical need in thinking in relation to economic crime and fraud, which we look forward to progressing through the 4th FRIL programme currently live focusing on ‘innovation to address financial crime’.

What is Quantum Technology and the risks it presents?

McKinsey states quantum technology could create value worth trillions of dollars within the next decade with the finance sector identified as a sector that could see the earliest impact, however the concept remains relatively unknown to most. The term quantum technology broadly relates to science that applies quantum mechanics to a given field of technology, and refers to a subset of fields such as quantum computing, quantum sensing, quantum imaging, or quantum communications.

For the purposes of this blog, we will be focusing on quantum computing, which utilises qubits, concisely summarised by the World Economic Forum as –

Quibits are the equivalent of a classical bit, and the most fundamental unit for encoding information. Where a bit can be in a state of either on or off (0 or 1), a qubit can be in either 0 or 1 – or a combination of both. This is because of a superposition effect in quantum theory, which means that particles can exist simultaneously in multiple states. 

In practice, this means not only can quantum computing provide a significant performance boost in processing, but it also has the potential to solve complex problems much faster than even the most powerful supercomputers today.

Whilst this kind of revolutionary power could deliver numerous opportunities for the finance sector, the risk rapidly materialises when considering public-key cryptography (PKC), which the security of nearly all Internet communications today is based on. The underpinning security of PKC relies on the difficulty of the mathematical problems and the challenge in which classical computers have in solving them. However, solving these mathematical problems with a general purpose quantum computer is considered easy, with Shor’s algorithm demonstrating this capability back in 1994, the challenge being that the power capabilities of a quantum computer to run the algorithm do not yet exist.

As highlighted by the NCSC, although advances in quantum computing technology continue to be made, quantum computers today are still limited, and suffer from relatively high error rates in each operation they perform. For organisations, however, this risk remains a priority for the thinking of today as bad actors are adopting a ‘harvest now, decrypt later’ approach to collect valuable, sensitive data in anticipation of power capabilities being on the horizon.

What is the current regulatory landscape at the intersection of quantum computing and the finance sector?

Regulatory agencies worldwide are battling with the balance between technology readiness levels and appropriate regulation or standard setting in relation to developments.

In October 2024, the UK Govt agreed with recommendations made by the Regulatory Horizons Committee (RHC – commissioned by DSIT to review the future needs of quantum technologies regulation to support innovation and growth) ‘that it is too early to establish regulatory requirements and legislation for quantum technologies at this stage given the nascency of the sector, but sustained action is required now to increase regulatory capability and enable a sector- and application-specific approach to regulating quantum technologies in the future’. When considering the finance sector specifically, the UK’s Financial Conduct Authority has demonstrated its position as a leading voice in the quantum security domain through collaborative initiatives with the World Economic Forum, where research was published offering guidance for businesses and regulators to ensure a collaborative and globally harmonised approach to quantum security.

Looking further afield at the international landscape, momentum continues to evolve at pace, and earlier this year we also saw the US agency National Institute of Standards & Technology (NIST) finalised several post quantum encryption standards. With these standards, NIST encouraged large organisations, including those across the finance sector, to begin transitioning to the new standards as soon as possible. Regulatory authorities in Singapore have also recently launched a ‘Quantum Track’ within their Financial Sector Technology & Innovation Scheme (FSTI 3.0), with an additional S$100 million earmarked to support innovation in quantum and AI.

Despite this progress, participants in the discussion broadly agreed there is still a long way to go when assessing the regulatory and standard setting landscape of quantum.

How can we collectively progress successful collaboration around the exploration of quantum technologies?

The consensus of the discussion emphasised that the fundamental principles for continued collaboration span across the triple helix of engagement from industry, academia and regulatory colleagues, mirroring the principles that underpin the Financial Regulation Innovation Lab. Here at FRIL we will continue to actively convene stakeholders across these groups on topics that present both opportunities and risks in financial regulation, exploring how innovative propositions and ways of working can be progressed across the ecosystem.

Across the FinTech Scotland cluster there are various collaborative projects exploring the beneficial and responsible exploration of quantum technologies. One of which, highlighted by roundtable attendees, is the BT Quantum Key Distribution project. The NCSC outlines that Quantum Key Distribution (QKD) mitigates the quantum threat to key agreement using properties of quantum mechanics, rather than hard mathematical problems, to provide security. We look forward to continuing to engage with our partners in the BT team on their learnings throughout this programme and sharing insights across the cluster.

Challenges were highlighted around accessing and sharing data, which continues to be a barrier for innovators and researchers in this area. Discussion touched on the potential of synthetic data in aiding progress for development activities, and reference to the success of regulatory initiatives such as the FCA Digital Sandbox in already going some of the way to knock down these barriers. Risks were also highlighted around the danger that advancements in quantum could be dominated by existing major players in the market, further emphasising the importance of initiatives that support democratising the playing field for innovators in this space to enable competition and avoid monopolisation.

What’s next in the intersection of quantum and finance? 

Reflections were made on the rapid evolution of AI, and the opportunities to respond differently as we look forward to the evolving risks and opportunities that quantum presents. These lessons range from the debate around explainability, and the potential opportunities quantum presents in this field, through to the pace at which regulation and standard setting is struggling to keep up with the technology.

There was a broad agreement across attendees that priority use cases for the finance sector in regards to quantum computing need refinement, with possibilities spanning from the use of quantum technologies by bad actors through to organisational adoption of quantum technologies. Attendees also highlighted the opportunities that can be explored with quantum technology as we look to areas such as open finance and the value that can be derived from this data to create beneficial and responsible innovation.

The FRIL Innovation to Address Financial Crime programme lays the foundations to begin testing some of this thinking, as evidenced through the roundtable and also the broader innovation call series, and we will continue to engage with experts across the ecosystem in the long term roadmap of FRIL focus areas. We are looking forward to engaging with innovators across the industry led use cases in this programme, exploring where potential quantum computing advancements may provide opportunities to more effectively tackle financial crime risks.

Interested in exploring more? The key contacts across the Financial Regulation Innovation Lab on this topic are:

Autumn Budget 2024: Will the government’s Corporate Tax Roadmap drive business investment in the UK?

Accompanying the Autumn Budget 2024, the government released their Corporate Tax Roadmap to outline plans for Corporation Tax (CT) over the next five years.

While the plans detail some commitments, they also outline a framework for where the government is looking to explore making changes in the future. The aim is to provide a ‘stable and predictable tax environment for businesses’, many of whom are still reeling from raises in employer contributions to National Insurance – including many FinTech innovators across Scotland.

The publication is a first step, which is to be followed by the release of an Industrial Strategy, the conclusion of the Spending Review, and plans for meeting our net-zero targets.

In this article, we explore the Corporate Tax Roadmap to highlight where the government has made firm commitments and where they have suggested potential changes that may affect innovative businesses, including to R&D Tax Credits, Patent Box (and other intangible assets), Capital Allowances and Land Remediation Relief.

What is the purpose of the Corporate Tax Roadmap? 

The Corporate Tax Roadmap is the government’s way of giving UK businesses confidence, providing them with as much advance notice as possible to encourage ‘investment, innovation, and growth over the long-term’. More importantly, it contains promises on what won’t be changing, which is why the headline announcement is the capping of CT at 25% for the whole of this Parliament.

There are a few reasons why the government is trying to tread carefully here. The last time Labour delivered a budget was in 2010 and, like any new party in office, they are keen to win the trust of the business community.

Raising private investment and boosting economic growth are seen as vital measures of success, but low growth and falling global economic competitiveness have been problems for the UK since the financial crisis of 2007-09.

Just recently, both ‘low investment’ and ‘policy uncertainty’ were identified as primary causes for low growth in a research paper written for Members of Parliament after the 2024 general election. By providing certainty, the government is hoping to finally unlock investment to get the economy growing again.

Of course, that doesn’t mean that nothing is set to change. As part of driving growth, the government wants to improve the efficiency of the tax system, making it more customer-friendly while improving the accessibility and targeting of key relief schemes. Another goal is to reduce fraud and error. As such, these are the areas that the Corporate Tax Roadmap focuses on when proposing potential changes.

What does the Corporate Tax Roadmap say about R&D Tax Credits?

R&D Tax Credits are key to driving innovation as they incentivise private investment for developing new and improved products and services. The Corporate Tax Roadmap makes a series of clear commitments on R&D reliefs, including:

  • Keeping the current rates for the merged RDEC scheme and the Enhanced Support for R&D Intensive SMEs.
  • Establishing an R&D expert advisory panel to improve signposting and guidance on R&D reliefs.
  • Launching an R&D disclosure facility by the end of 2024, which will have powers to tackle agents who breach the set standards.
  • A consultation in spring 2025 on widening the use of advance clearances in R&D relief.
  • Periodically reviewing the evidence on R&D reliefs to ensure they’re effective.
  • Improving R&D claim administration and customer service after concerns were raised about the recent level of HMRC scrutiny.
  • Continuing to tackle error and fraud while making the claims process as simple as possible.

The roadmap also makes some overarching observations about R&D Tax Credits, including:

  • Every eligible business conducting research and development will receive between £15 to £27 for every £100 of qualifying R&D expenditure.
  • The UK’s merged RDEC rate of 20% is the joint highest uncapped headline rate of R&D relief in the G7 for large companies.
  • R&D Tax Credits are expected to drive £56 billion of business R&D spend a year by 2029-30 (as a reference point, 2022-23 saw an estimated £46.7 billion of R&D spend).
  • HMRC believes they have reduced error and fraud by almost 10% between 2021-22 and 2023-24.

What does the Corporate Tax Roadmap say about Patent Box and intangible fixed assets? When the treasury previously tried to estimate the knowledge economy’s worth, they came up with a value of between £100bn and £150bn for assets in the UK public sector – but they felt this number was conservative, as more and more companies shift from physical assets to intangible ones.

Regardless, it’s clear that the knowledge economy is vital for economic growth. As such, the Corporate Tax Roadmap commits to keeping the current tax benefits for patents (via Patent Box) and other intangible fixed assets like trademarks, designs, intellectual property rights, etc.

What does the Corporate Tax Roadmap say about Capital Allowances? 

The government has committed to keeping the full-expensing Capital Allowance, the £1 Annual Investment Allowance (AIA), the current structure of writing down allowances, and the Structures and Buildings Allowance.

The Corporate Tax Roadmap does however refer to several potential changes, including simplifying the schemes, exploring how to provide greater clarity of qualifying expenses, and opening the full expensing regime to cover assets bought for leasing or hiring. Separately, there will be a consultation on the tax treatment of predevelopment costs, which will take place later in 2024.

It also suggests that further changes to Capital Allowances would be considered if they help to promote investment and economic growth, give the UK a competitive edge, reduce fraud & error risks, or provide new flexibility for businesses to choose which Capital Allowances to claim.

What does the Corporate Tax Roadmap say about Land Remediation Relief? 

While no immediate changes have been announced to Land Remediation Relief, the government has said that they plan to hold a consultation in Spring 2025 to review the scheme’s effectiveness.

The Corporate Tax Roadmap acknowledges that in the past Land Remediation has helped with cleaning up contaminated or derelict land, but as there haven’t been many changes to the scheme since its inception in 2001, the time has come to review whether it’s still helping to increase investments in developing on brownfield land in a cost-effective way.

This article was originally published by Leyton UK. Leyton UK are a member of HMRC’s consultative committee and are therefore well placed to guide you through the recent changes, and help you compliantly maximise your R&D Tax Reliefclaims.

Good tech is the answer to the vulnerable customer challenge

In February 2021, the Financial Conduct Authority (FCA) introduced comprehensive guidance aimed at ‘ensuring the fair treatment of customers in vulnerable circumstances. This was driven by the recognition that vulnerable people, because of circumstances such as poor health, financial instability, or negative life events, are particularly susceptible to harm if not “treated fairly”. The FCA’s guidance outlines actions firms should take to understand and address the needs of these customers, ensuring they receive “outcomes which are as good as other customers’”. The goal is to create a financial services environment where all customers, regardless of their circumstances, are treated fairly and with respect.

This requires firms to:

  1. Understand everyone’s characteristics and to mitigate any potential harms.
  2. Monitor the consumer through the lifetime of the product/service.
  3. Report on outcomes of vulnerable cohorts, compared to the resilient, for Consumer Duty reporting.
  4. Assess and report on the fair value received by vulnerable cohorts, compared to the resilient.
  5. Maintain evidence of the above.

None of this is easy. The first challenge is how to identify those customers who are vulnerable. Firms are attempting to do this in several ways, dividing them into indirect, or reactive, methods – essentially assessing current data sources – and direct, or proactive, methods – engaging directly with the consumer.

While it’s true that there is a lot of financial data available which can infer financial vulnerability, this is only part of the picture – there is minimal information available on health and lifestyle. Focusing on only financial data provides a woefully incomplete picture. Indirect approaches are largely limited to financial characteristics; the only practical way to obtain health and lifestyle information is to engage directly with consumers.  This is very successful. Firms can obtain good information, directly from consumers, using voice analytics, face-to-face meetings or calls, voice calls, questionnaires and similar approaches.

AI is heralded as a silver bullet – but in the absence of a library of vulnerability data on which to train the AI model, this is currently little more than wishful thinking.

We know that around 50% of people are vulnerable at any one time. The only way to identify that 50% is to assess everyone. Far too many firms began by using reactive methods – waiting for customers to inform them of their vulnerabilities or waiting for vulnerabilities to be identified at points of interaction. These approaches are seldom adequate – identifying few people – so most firms are looking to be both more proactive and thorough in their assessment methodologies.

Once we identify vulnerabilities, the next challenge is how to classify and store the data – with around 100 characteristic data points, each having a range of severities, there is a lot of data on which to base an assessment. If undertaken manually, understanding (and therefore assessment) is subjective – and many early approaches used text descriptions. These are inconsistent and difficult (if not impossible) to use structurally for assessment, management and reporting. Proprietary lexicons of vulnerability bring an objective assessment methodology which delivers consistent data. One such system is the MorganAsh Resilience System (MARS).

After identification and classification, there is the thorny challenge of GDPR. We need to restrict data to only those who need it, while communicating vulnerabilities across firms so that mitigation strategies can be used. Many firms have yet to resolve this. The solution is to code, classify and communicate characteristics – and mitigating strategies – so that an individual’s personal data is not openly passed around.

The next challenge is how to mitigate customers’ vulnerabilities. Many solutions are obvious, and, with flexibility, these can be implemented by front-line staff. However, this approach is too limited to be successful. There is a vast number of mitigations strategies that might be appropriate, vast numbers of consumer groups to signpost to – and firms may have different appetites for customer service for different groups. It’s unrealistic to expect busy staff to be experts in all vulnerabilities and mitigation paths. Again, systems are required to deliver consistency and scalability.

A further development is how vulnerability data is shared between firms. In an intermediated market – which is most of the financial services industry – manufacturers’ products are sold via intermediaries. Typically, intermediaries have contact and relationships with consumers, while the manufacturer maintains the product – often over multiple years. To meet the monitoring obligation, either the intermediary and the manufacturer undertake separate vulnerability assessments, or they collaborate and share information. The industry has been slow on this, with minimal discussions between groups.

While customer vulnerability is a very human issue, for it to be managed it needs data – and systems to support this data. The good news is that this is already happening. Vulnerability tech systems are already in place and working well – and pioneering the new discipline of vulnerability management.

Want to read the full report? Visit https://www.elephantsdontforget.com/resources/customer-vulnerability-your-questions-answered-2/

H2C.org Launches the World’s First Global Market for Green Hydrogen Certificates

H2C.org is launching the first global market and registry for the international trade in green hydrogen certificates. Following in the footsteps of renewable energy and sustainable aviation fuel registries, H2C.org enables the green premiums and carbon removal rights of green hydrogen to be sold discretely from each ton of fuel. H2C.org is set to catalyse international markets for green Hydrogen with nearly 2,000 production projects currently under development globally.

By uncoupling Green Premium Certificates from green hydrogen fuels, H2C.org enables a global market of beneficiaries to decarbonise their Scope1, 2 & 3 emissions and supply chains directly. Meanwhile producers can strike off-take agreements at prices closely aligned to cheaper production methods. H2C.org provides the missing link to create viable international markets for green hydrogen and financing green premiums.

First Carbon Investments founded the H2C.org initiative. Their CEO, Peter Ellen, notes, “Launching H2C.org is a pivotal moment for the emergence of global hydrogen markets. Green Hydrogen is primed to transform sectors, including heavy industry, transport, and agriculture, for a low-carbon future. Developing large export markets is a critical step in developing interoperable and resilient demand and supply.”

The Green Hydrogen industry has been constrained by significant cost premiums associated with producing hydrogen from renewable energy sources. Ellen notes, “There is huge momentum for Green Hydrogen, but bulk international off-takers operate in low margin, high volume industries, where increases in fuel costs are hard to support. Deploying green hydrogen eliminates emissions from global supply chains, benefiting Scope 1,2 and 3 carbon accounts across many value-added goods and services. H2C.org enables all those beneficiaries to remove emissions from their supply chains by buying Green Premium Certificates.”

Scope 1 beneficiaries include heavy industry, transport, shipping, and agriculture, with Scope 3 covering most value-added manufacturing and services, from automobiles to technology and consumer goods. H2C.org provides a direct and cost-effective way for organisations to remove carbon emissions from supply chains while reducing dependency on third-party off-setting.

Today, the largest and most significant green hydrogen production projects are on the cusp of delivering portable energy to some of the world’s highest emitting sectors, often referred to as hard-to-decarbonise industries. Green hydrogen offers a viable replacement for fossil fuels because it delivers renewable energy in a portable, energy-intense, liquid form that can leverage existing infrastructure. In the near term, it will allow organisations and countries to meet corporate and national commitments.

“We see export-focused projects harnessing 4GW+ of dedicated renewable energy to electrolyse seawater for the annual production of 1mn+ metric tons of green hydrogen and ammonia. These projects will drive global transformations and develop resilient markets, and H2C.org enables off-takers to buy at a viable cost.”

H2C.org is now inviting key players to join as development partners. This pragmatic initiative allows partners to be at the forefront of the global hydrogen economy. Ellen notes, “Supply and demand signals are significant, and H2C.org already counts over 100GW of partners with a particularly strong MENA representation. We believe those projects alone represent a 0.7% reduction in global emissions. Together with partners, we are on a mission to make a
giga-ton impact.”

About H2C
H2C, founded by First Carbon Investments, is a groundbreaking initiative designed to accelerate the adoption of low-carbon hydrogen and its derivatives through Green Premium Certificates. They aim to facilitate the development of $trillion global markets for clean technologies. With multiple standards emerging to validate the provenance of green
hydrogen, H2C.org provides an interoperable registry and market to enable global trade.

About First Carbon Investments
First Carbon Investments is dedicated to accelerating the transition to clean technologies globally across the energy, transport, and heavy industry sectors. Leveraging expertise in catalytic finance and provenance management, they invest in and support the development of low-carbon fuels, helping to reduce the world's carbon footprint effectively and sustainably. Founded by industry visionaries with extensive experience in high-growth and global finance, FCI combines strategic insight with practical solutions to meet the demands of the evolving low-carbon economy. Through its comprehensive platform, FCI offers catalytic finance, provenance management, and management consulting services, fostering partnerships that enable the effective implementation of transformative environmental solutions.

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To join our network of partners, visit Development Partner Signup or contact us at info@h2c.org or go to h2c.org for more information.