Frequently Asked Questions

Non-compliant financial institutions face regulatory intervention from the FCA, including substantial fines, the withdrawal of permissions to operate, and mandatory requirements to pay redress to affected customers. Beyond these legal penalties, firms risk severe reputational damage and a loss of market trust that can undermine their long-term commercial viability.

Moneyhub aids financial institutions with their Consumer Duty compliance by providing the data insights and technical stack required to fully understand customers. We enable you to granularly zoom into customers on a personal level in order to segment accurately, send timely nudges and make the right product offers. 

The Consumer Duty is built on four key outcomes that firms must deliver: Products and Services, Price and Value, Consumer Understanding, and Consumer Support. These outcomes ensure that financial products are fit for purpose, offer fair value for the cost, provide clear information for informed decisions, and offer accessible support throughout the customer journey.

If a user of a savings app turns off marketing preferences, does that halt nudges around what's 'safe to save'? It's mostly based on the content of the nudge. It can be a service communication aligned with Consumer Duty, or it can be marketing: where users can choose to opt out.

Optimisation is achieved by determining purchase likelihood scores, and prioritising high-profit opportunities. Instead of a broad ‘spray and pray’ campaign, your budget is focused exclusively on the top 10% of customers that the data proves are in an active intent window, significantly increasing engagement and reducing wasted spend.

Product Marketers, Proposition Managers, Data Engineers, and the end customers all benefit from the transition from guesswork to high-fidelity insights. Marketers achieve higher conversion rates and lower acquisition costs, while customers receive a more empathetic, financial coach experience that feels like a partnership towards better financial outcomes rather than a series of cold pitches.

The most effective strategy is to use transaction history to identify high-affinity product pairings. By analyzing market baskets, such as the correlation between premium gym spends and private health insurance, you can ensure your offers reach customers with a verified behavioral predisposition to buy.

The 25% rule of thumb limits the cost of new products to no more than a quarter than the current price they pay. This targets the customer’s psychology, ensuring that they are more likely to accept the offer.

One use case that we enjoy implementing at Moneyhub is giving banks and lenders the power to pre-approve loans using microsegmentation with a high degree of certainty. This enables institutions to meet their Consumer Duty requirements around suitability while also opening up new segments to their lending products.

Implement event-driven triggers (also known as nudges) by defining a precise data threshold, based on categorisation and enrichment outcomes, that automatically activates an offer sequence. This system ensures your product recommendation is delivered at the exact moment a customer's behaviour signals a high propensity to buy.

Leverage AI by using machine learning models to analyse historical and real-time transaction data to calculate a customer's propensity score for a specific product. This allows you to predict their future needs, ensuring the offer is timely and highly relevant.

Implementation requires establishing three core capabilities: 

1. the ability to ingest transaction streams instantly

2. a system to analyse these tranasctions for potential fraud

3. a mechanism to monitor and act on the analysis in real-time

Financial institutions must either undergo a resource-intensive internal improvement cycle or outsource this engine to a specialist.