Our aim: A £5m prize for digital products that use smart data to achieve significant reductions in loyalty penalties paid by vulnerable consumers
Pre-COVID-19, Citizens’ Advice identified a £4 billion ‘loyalty penalty’ paid by consumers across a range of essential markets, from broadband to home insurance, with financially vulnerable consumers often on the worst deals.
In the wake of COVID-19, of the 20% of the population on the lowest incomes, 42% saw their household income fall last year.
To combat this, The Smart Data for Consumers Prize would use smart data to incentivise innovators to create digital products that aid vulnerable consumers to have meaningful savings and significantly reduce loyalty penalties.
The UK is at the forefront of developing digital tools and fintech solutions and has been a pioneer in open banking.
These sectors can be instrumental in creating the next generation of digital innovations that can enable meaningful financial behaviour change and long term financial resilience for vulnerable consumers.
Government’s smart data agenda to expand the open banking model can unlock a wave of innovation and competition benefiting consumers. The Smart Data for Consumers Prize would run parallel to this agenda, helping us build back better post-COVID-19.
Get in touch if you are interested in collaborating on this future prize.
This prize idea is designed to be a conversation starter, so tell us what you think!
The best prize ideas are developed through extensive research and engagement with experts, stakeholders and people with lived experience of the problems they are focused on. We start with a first draft like the one above – then work to improve, refine and validate our thinking.
We’re particularly keen to have conversations about this idea with potential funders and organisations working in the field. Get in touch if you’re interested – or if you think you have a better idea – and we’ll schedule a call.
Challenge Works has put together a report shedding light on the role of challenge prizes in revitalising the UK Innovation Strategy.
Challenge prizes can complement grants, reduce risk in portfolios of government innovation investments, and can be particularly effective at stimulating near-market innovation targeting specific outcomes and private R&D investment.
