Mission Possible: The role of challenge prizes in a revitalised UK Innovation Strategy
Smart Data for Consumers Prize A £5m prize for digital products that use smart data to achieve significant reductions in loyalty penalties paid by vulnerable consumers Why a prize? Challenge prizes deployed alongside regulatory change have been used to successfully kickstart open banking innovation in the UK. The Smart Data for Consumers
Technology leadership for the UK The UK has world-class digital, design, data and fintech sectors, and has been a pioneer in open banking. Fintech has demonstrated the benefits for consumers of shaking up key markets. These leading edge sectors are well placed to take advantage of smart data rollout and to create a new generation of services that change how consumers engage with a range of essential markets.
Prize would challenge the UK’s thriving digital, data and design sectors to create services that help consumers to get the best deals in banking, energy, pensions, insurance and other markets, building on Government’s plans for smart data rollout.
Alignment with the seven technology families of UK strength and opportunity Advanced Materials and Manufacturing AI, Digital and Advanced Computing Bioinformatics and Genomics Engineering Biology Electronics, Photonics and Quantum Energy and Environment Technologies Robotics and Smart Machines
The problem Before COVID, Citizens Advice identified a £4 billion ‘loyalty penalty’ paid by customers in essential consumer markets including mobile, broadband, home insurance, cash savings and mortgages, with low income and vulnerable customers often on the worst deals. The COVID-19 crisis makes tackling this problem all the more urgent: of the 20 per cent of the population on the lowest incomes, 42 per cent saw their household income fall last year. In longer term UK workers need to save more to enjoy the retirements they hope for. They face a complex pensions market with opaque pricing, leading to underinvestment and overpaying. Government’s smart data agenda to expand the open banking model to other markets can unlock a wave of
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innovation and competition benefiting consumers. The Smart Data for Consumers prize would run in parallel with this expansion, kickstarting innovation focused on services that result in meaningful savings and better options for lower income and vulnerable consumers.
The impact Enabled through smart data, AI, and compelling design, the next generation of digital products can enable meaningful financial behaviour change leading to greater short and longer term financial resilience for consumers.
The mission The Smart Data for Consumers Prize would be part of a mission to build back better post-COVID.