Financial Credibility and Credit Scoring Re-imagined
Financial Credibility and Credit Scoring Re-imagined
Financial Credibility and Credit Scoring Re-imagined
Service Design, Business Strategy
Service Design, Business Strategy
Service Design, Business Strategy
As part of my final project in the RCA Service Design course, I worked with the Future Finance Lab at RCA, on the subject of financial credibility for digital nomads with inspiration provided by UBS-Y.
As part of my final project in the RCA Service Design course, I worked with the Future Finance Lab at RCA, on the subject of financial credibility for digital nomads with inspiration provided by UBS-Y.
Team : Patch Kusonjai, Yashasri Sadagopan.
Role : Research, Service Design, Business Strategy
Timeline : April 2023- July 2023, Final Project at the Royal College of Art.
Mentor: Kam Chana
Team : Patch Kusonjai, Yashasri Sadagopan.
Role : Research, Service Design, Business Strategy
Timeline : April 2023- July 2023, Final Project at the Royal College of Art.
Mentor: Kam Chana
Team : Patch Kusonjai, Yashasri Sadagopan.
Role : Research, Service Design, Business Strategy
Timeline : April 2023- July 2023, Final Project at the Royal College of Art.
Mentor: Kam Chana
Context
Context
As a team, we were interested in exploring the future of work, its impact on work-life balance, changing values and dynamics, lifestyle and happiness. This brought us to exploring the Digital Nomad culture.
Digital Nomads are a new generation of people who travel freely and work remotely. In a post-pandemic world, with a push towards remote work, there has been a redefining of work-life balance, changing values and dynamics, lifestyle and happiness. The digital nomad demographic is a significantly growing one and it is important for organisations to understand, align and support them.They are a new generation of people who travel, work and live across countries. They have a mindset of autonomy and freedom and enjoy the independence that this lifestyle offers. A few of their values includes being flexible, tech savvy, self-disciplined and resourceful.
Designing for this demographic is important because there are currently an estimated 35 million digital nomads worldwide and the numbers are predicted to rise to 1 billion in 2035.
As a team, we were interested in exploring the future of work, its impact on work-life balance, changing values and dynamics, lifestyle and happiness. This brought us to exploring the Digital Nomad culture.
Digital Nomads are a new generation of people who travel freely and work remotely. In a post-pandemic world, with a push towards remote work, there has been a redefining of work-life balance, changing values and dynamics, lifestyle and happiness. The digital nomad demographic is a significantly growing one and it is important for organisations to understand, align and support them.They are a new generation of people who travel, work and live across countries. They have a mindset of autonomy and freedom and enjoy the independence that this lifestyle offers. A few of their values includes being flexible, tech savvy, self-disciplined and resourceful.
Designing for this demographic is important because there are currently an estimated 35 million digital nomads worldwide and the numbers are predicted to rise to 1 billion in 2035.
Research
1. Desk Research
Research
1. Desk Research
Literature Review and Web deep dive: We began our initial desk research on the culture of Digital Nomadism, future of well-being and happiness for workers, timeline of nomadism and its influence on the concept of Digital Nomads, re-evaluation of future work models by business and management magazines, market and demographic research on Digital Nomads and geographical, financial, political, regulatory implications on this lifestyle.
Industry Reports: Since this is a very sizeable portion of the workforce, we also read a lot of research articles published by business and financial organisations like the Harvard Business Review, UBS, The Economist, Forbes, Santander, and so on. This helped us in understanding and synthesising the problem landscape.
Social Media Analysis: Through desk research, we realised that this is a very closely knit online community. So we deep dived into these communities on social media like Reddit and Instagram profiles of digital nomad influencers.
Literature Review and Web deep dive: We began our initial desk research on the culture of Digital Nomadism, future of well-being and happiness for workers, timeline of nomadism and its influence on the concept of Digital Nomads, re-evaluation of future work models by business and management magazines, market and demographic research on Digital Nomads and geographical, financial, political, regulatory implications on this lifestyle.
Industry Reports: Since this is a very sizeable portion of the workforce, we also read a lot of research articles published by business and financial organisations like the Harvard Business Review, UBS, The Economist, Forbes, Santander, and so on. This helped us in understanding and synthesising the problem landscape.
Social Media Analysis: Through desk research, we realised that this is a very closely knit online community. So we deep dived into these communities on social media like Reddit and Instagram profiles of digital nomad influencers.
2. Primary Research
2. Primary Research
We conducted primary research with varied groups of people associated with the Digital Nomad industry namely:
Digital Nomads: Remote interviews with Digital Nomads spread across globally, such as from North America, Canada, Latin America, the United Kingdom, Europe, India and South East Asia to understand their motivation to pursue this lifestyle, needs, expectations and pain points. Conversations with Digital Nomad online communities.
Leaders in Public Policy with the Government: To understand how policies for Digital Nomads are implemented at a policy level and what could be improved.
Pioneers and Entrepreneurs in the Digital Nomad Industry: To understand services catering to Digital Nomads and opportunity areas to explore.
Through our research, we realised that a majority of problems faced by Digital Nomads were financial. So, to explore the financial angle we conducted primary research with experts in:
Embedded Finance - Natwest Boxed
To understand how services catering to Digital Nomads can have a financial element supporting them.
Behavioural Design for Finance - Mike Coulter (BJ Fogg)
To understand what motivates people to make better financial decisions.
Insurance for Digital Nomads - SafetyWing and Plumia
To understand financial needs of Digital Nomads.
Banking and Financial Services Institutions - Temenos
To understand policies and products created by large banks and neo-banks to support the community.
We conducted primary research with varied groups of people associated with the Digital Nomad industry namely:
Digital Nomads: Remote interviews with Digital Nomads spread across globally, such as from North America, Canada, Latin America, the United Kingdom, Europe, India and South East Asia to understand their motivation to pursue this lifestyle, needs, expectations and pain points. Conversations with Digital Nomad online communities.
Leaders in Public Policy with the Government: To understand how policies for Digital Nomads are implemented at a policy level and what could be improved.
Pioneers and Entrepreneurs in the Digital Nomad Industry: To understand services catering to Digital Nomads and opportunity areas to explore.
Through our research, we realised that a majority of problems faced by Digital Nomads were financial. So, to explore the financial angle we conducted primary research with experts in:
Embedded Finance - Natwest Boxed
To understand how services catering to Digital Nomads can have a financial element supporting them.
Behavioural Design for Finance - Mike Coulter (BJ Fogg)
To understand what motivates people to make better financial decisions.
Insurance for Digital Nomads - SafetyWing and Plumia
To understand financial needs of Digital Nomads.
Banking and Financial Services Institutions - Temenos
To understand policies and products created by large banks and neo-banks to support the community.
User Persona
Meet Jack - our Digital Nomad!
User Persona
Meet Jack - our Digital Nomad!
Now let's look at the life and problems of digital nomads.
We want to introduce you to Jack, a digital nomad from the United States travelling to the UK.
He needs to perform financial transactions without friction, manage money in the short and long term and feel welcome in the country he is nomading in.
But as he moves forward he’s so frustrated! He’s unable to rent or access services, he can't open bank accounts due to failed credit checks and he finds it hard to navigate financial planning like pension and tax as a digital nomad.
Thus we realised that this lifestyle is not a privilege, but it is a lifestyle that comes with several frictions and doesn’t get supported.
Now let's look at the life and problems of digital nomads.
We want to introduce you to Jack, a digital nomad from the United States travelling to the UK.
He needs to perform financial transactions without friction, manage money in the short and long term and feel welcome in the country he is nomading in.
But as he moves forward he’s so frustrated! He’s unable to rent or access services, he can't open bank accounts due to failed credit checks and he finds it hard to navigate financial planning like pension and tax as a digital nomad.
Thus we realised that this lifestyle is not a privilege, but it is a lifestyle that comes with several frictions and doesn’t get supported.
Problem Landscape Synthesis
Problem Landscape Synthesis
Then, we drew insights after understanding the problem. While they do face issues with rigid bureaucratic procedures and hustle culture, the biggest problem underpinning them is the Outdated Credit Score system - which restricts them from their desired life because their reputation and credibility are not transferred as they move from country to country. The system is unfit for the new age lifestyle.
Then, we drew insights after understanding the problem. While they do face issues with rigid bureaucratic procedures and hustle culture, the biggest problem underpinning them is the Outdated Credit Score system - which restricts them from their desired life because their reputation and credibility are not transferred as they move from country to country. The system is unfit for the new age lifestyle.
Vision
Vision
This brings us to our big vision, a speculative idea of reinventing the credit score system, allowing people to benefit from it as life enablers and have it as a global reputational marker instead of being a life restriction.
However, we believe that the road to that vision requires us to step towards how we enable our target audience, digital nomads to build and maintain their financial credibility in navigating their nomadic lifestyle.
This brings us to our big vision, a speculative idea of reinventing the credit score system, allowing people to benefit from it as life enablers and have it as a global reputational marker instead of being a life restriction.
However, we believe that the road to that vision requires us to step towards how we enable our target audience, digital nomads to build and maintain their financial credibility in navigating their nomadic lifestyle.
Inspiration
UBS Y - Museum of Future Archaelogy
Inspiration
UBS Y - Museum of Future Archaelogy
In this project we got materials for inspiration from the UBS-Y think tank’s Museum of Future Archeology, where we analysed and curated artefacts that suit our vision.
The item that we picked is “Reputy Butterfly” - An artefact that collects your quantifiable data and interactions like sticky pollen on a butterfly, his becomes the person’s one of the most valuable life assets.
We did a Reverse Speculation and backcast it to our context. Starting with a question:
“Could the Reputy Butterfly become a metaphorical representation of a Digital Nomad’s financial credibility?"
..by augmenting a new data stream of their interactions into the traditional Credit Score system.
In this project we got materials for inspiration from the UBS-Y think tank’s Museum of Future Archeology, where we analysed and curated artefacts that suit our vision.
The item that we picked is “Reputy Butterfly” - An artefact that collects your quantifiable data and interactions like sticky pollen on a butterfly, his becomes the person’s one of the most valuable life assets.
We did a Reverse Speculation and backcast it to our context. Starting with a question:
“Could the Reputy Butterfly become a metaphorical representation of a Digital Nomad’s financial credibility?"
..by augmenting a new data stream of their interactions into the traditional Credit Score system.
Concept Testing and Validation
Royal College of Art - Graduate Public Show
Concept Testing and Validation
Royal College of Art - Graduate Public Show
We tested our initial concept at the RCA public show with experts from the financial services industry and public audience, and we ideated creatively on the functions of the butterfly - Consolidating on what makes a person credible? Engaging different daily elements like subscriptions, carbon emission score and social credits and so on.
Our concept was validated and we got valuable feedback from industry experts working in Temenos, Rise-Barclays, FutureState&Co, British Red Cross, Aegon, Untied.
We tested our initial concept at the RCA public show with experts from the financial services industry and public audience, and we ideated creatively on the functions of the butterfly - Consolidating on what makes a person credible? Engaging different daily elements like subscriptions, carbon emission score and social credits and so on.
Our concept was validated and we got valuable feedback from industry experts working in Temenos, Rise-Barclays, FutureState&Co, British Red Cross, Aegon, Untied.
Our Concept
NomadCRED
Our Concept
NomadCRED
From our research we found that Digital Nomads are a new dynamic and from a global talented workforce. There is so much potential they could bring, anywhere.
Introducing NomadCRED, a service offered to Digital Nomads through the recruitment industry, which use their talent to build their financial credibility and reputation.
From our research we found that Digital Nomads are a new dynamic and from a global talented workforce. There is so much potential they could bring, anywhere.
Introducing NomadCRED, a service offered to Digital Nomads through the recruitment industry, which use their talent to build their financial credibility and reputation.
Stakeholders
Stakeholders
Firstly, lets look at the stakeholders involved.
We have banks providing an embedded banking service where they provide financial data with NomadCRED.
This is provided to global talent acquisition platforms who have employment data.
They have a partnership with local service providers.
And finally this service is used by Digital Nomads.
Firstly, lets look at the stakeholders involved.
We have banks providing an embedded banking service where they provide financial data with NomadCRED.
This is provided to global talent acquisition platforms who have employment data.
They have a partnership with local service providers.
And finally this service is used by Digital Nomads.
Value Exchange Map
MVP: Digital Nomads seeking accommodation in the UK
Value Exchange Map
MVP: Digital Nomads seeking accommodation in the UK
Value Exchange Map
MVP: Digital Nomads seeking accommodation in the UK
Now lets look at how the model functions.
Our use case is solving the problem of getting accommodation in the UK for digital nomads.
We have a B2B2C business model.
Here, we have Natwest Boxed, a Banking as a Service platform which provides NomadCred to global talent acquisition. It provides financial data about digital nomads through embedded banking service.
This data goes to deel. which is a global talent acquisition platform. deel. now has a partnership with local service providers, in this context, it is a local renting platform such as Rightmove.
Rightmove will provide user data and pay a Referral fee to deel. for increased market share of digital nomads.
Now digital nomads will access Rightmove and pay a service fee for this.
They will also directly engage with deel. and pay a subscription fee for the same, which is a B2C model.
Now lets look at how the model functions.
Our use case is solving the problem of getting accommodation in the UK for digital nomads.
We have a B2B2C business model.
Here, we have Natwest Boxed, a Banking as a Service platform which provides NomadCred to global talent acquisition. It provides financial data about digital nomads through embedded banking service.
This data goes to deel. which is a global talent acquisition platform. deel. now has a partnership with local service providers, in this context, it is a local renting platform such as Rightmove.
Rightmove will provide user data and pay a Referral fee to deel. for increased market share of digital nomads.
Now digital nomads will access Rightmove and pay a service fee for this.
They will also directly engage with deel. and pay a subscription fee for the same, which is a B2C model.
MVP and Future Targets
MVP and Future Targets
For our current MVP, we are looking at the accommodation market in the UK.
In the future, we want to target local service providers that need credible data so that they can add digital nomads to their user base. This includes opening bank accounts, getting credit cards, utility services, car leasing, other means of accommodation, insurance, taxation, investment and wealth management.
We would also like to see if this data can serve as a credible source for nations providing digital nomad visas.
For our current MVP, we are looking at the accommodation market in the UK.
In the future, we want to target local service providers that need credible data so that they can add digital nomads to their user base. This includes opening bank accounts, getting credit cards, utility services, car leasing, other means of accommodation, insurance, taxation, investment and wealth management.
We would also like to see if this data can serve as a credible source for nations providing digital nomad visas.
Re-imagining the Credit Score System
How can the Reputy Butterfly calculate financial credibility?
Re-imagining the Credit Score System
How can the Reputy Butterfly calculate financial credibility?
Re-imagining the Credit Score System
How can the Reputy Butterfly calculate financial credibility?
Our aim here is to shift from a traditional system which uses quantitative measure to a mix of quantitative and qualitative.
The Qualitative bit focuses on using behavioural science to encourage the digital nomad to build his credibility continuously.
The Quantitative bit is more for the business partners so that they have quantified data about the person’s credibility.
The check is based on 3 elements - finance, employment and activity. The digital nomad is supposed to have at least 2 out of 3 quality checks, with finance being a non-negotiable.
A minimum of 3 months would allow them to see a significant change in their reputy butterfly and amount of available services they could unlock.
After 6 months of being actively involved, the nomad goes to Level 3 where their credibility is complete.
Our aim here is to shift from a traditional system which uses quantitative measure to a mix of quantitative and qualitative.
The Qualitative bit focuses on using behavioural science to encourage the digital nomad to build his credibility continuously.
The Quantitative bit is more for the business partners so that they have quantified data about the person’s credibility.
The check is based on 3 elements - finance, employment and activity. The digital nomad is supposed to have at least 2 out of 3 quality checks, with finance being a non-negotiable.
A minimum of 3 months would allow them to see a significant change in their reputy butterfly and amount of available services they could unlock.
After 6 months of being actively involved, the nomad goes to Level 3 where their credibility is complete.
Service Journey
Current As-is Journey of Jack
Service Journey
Current As-is Journey of Jack
To-be Journey of Jack
To-be Journey of Jack
With NomadCRED, we offer Jack a new journey of onboarding his nomadic life.
It starts when he signs a contract role with a company using deel. - it offers him a competitive benefits package within the platform where he could choose NomadCRED, a credit building service for digital nomad.
Then it will redirect him to the NomadCRED site where his profile is transferred an his credibility is calculated.
With NomadCRED, we offer Jack a new journey of onboarding his nomadic life.
It starts when he signs a contract role with a company using deel. - it offers him a competitive benefits package within the platform where he could choose NomadCRED, a credit building service for digital nomad.
Then it will redirect him to the NomadCRED site where his profile is transferred an his credibility is calculated.
Within the NomadCRED platform, they could browse available services from local providers based on their choice of destination.
When they are redirected to the service provider’s site, NomadCRED will act as a plug-in to allow their data to be transferred and support their activity. All these little moves they make will be collected and grow their reputy butterfly which benefits their future actions.
Within the NomadCRED platform, they could browse available services from local providers based on their choice of destination.
When they are redirected to the service provider’s site, NomadCRED will act as a plug-in to allow their data to be transferred and support their activity. All these little moves they make will be collected and grow their reputy butterfly which benefits their future actions.
Value Proposition
Value Proposition
Business Case
1. Market Sizing
Business Case
1. Market Sizing
2.Go-to-Market Strategy
2.Go-to-Market Strategy
3.Key Performance Indicators
3.Key Performance Indicators
Future Scope
Future Scope
We hope to create a Butterfly Effect with our concept, Begin as a financial reputation marker and eventually become a global life reputation marker..
Looking at the future segments..
We spoke to a social worker from British Red Cross in our show who said that this could be immensely beneficial to refugees as they face very similar financial problems and British Red Cross is itself looking for ways to mitigate this.
We also got evidence about how this could support the healthcare industry as well.
With overwhelming statistics like half of the US workforce is expected to become freelancers by 2025 and the gig economy seeing a tremendous boom, we do see this being applied to such segments.
We hope to create a Butterfly Effect with our concept, Begin as a financial reputation marker and eventually become a global life reputation marker..
Looking at the future segments..
We spoke to a social worker from British Red Cross in our show who said that this could be immensely beneficial to refugees as they face very similar financial problems and British Red Cross is itself looking for ways to mitigate this.
We also got evidence about how this could support the healthcare industry as well.
With overwhelming statistics like half of the US workforce is expected to become freelancers by 2025 and the gig economy seeing a tremendous boom, we do see this being applied to such segments.
Feedback
Feedback
Next Steps
Next Steps
We were selected to be the top 3 finalists in Santander's Omnichannel in Banking: Enhanced Customer Experience Across All Channels competition.
We are also in talks with some banks who offer embedded finance ability and are looking for partners who can help us realise this idea.
Currently, we are testing our concept with industry experts, stakeholders and digital nomads.
We were selected to be the top 3 finalists in Santander's Omnichannel in Banking: Enhanced Customer Experience Across All Channels competition.
We are also in talks with some banks who offer embedded finance ability and are looking for partners who can help us realise this idea.
Currently, we are testing our concept with industry experts, stakeholders and digital nomads.
Learnings and Reflections
Learnings and Reflections
This was our final project in the MA Service Design program at the RCA and I am really happy about creatively ideating how future artefacts can be leveraged and building a metaphorical representation of the same. This has built my confidence to creatively design out-of-the-box solutions which are viable and feasible.
We are truly thankful to our tutor, Kam Chana for her continued support as well as the industry experts who provided us with their invaluable expertise to help us achieve this successful outcome.
This was our final project in the MA Service Design program at the RCA and I am really happy about creatively ideating how future artefacts can be leveraged and building a metaphorical representation of the same. This has built my confidence to creatively design out-of-the-box solutions which are viable and feasible.
Along with creatively ideating on a concept that aims to redesign the credit score system, we were also able to create a strong value proposition for our stakeholders, design a solid business model and establish business and financial viability for the project.
In the Future Finance Lab, I was able to learn so much about creating value for stakeholders, business viability, relevant topics in Finance/Go-to-Market Strategy and position myself at the intersection of Service and Business Design.
We are truly thankful to our tutor, Kam Chana for her continued support as well as the industry experts who provided us with their invaluable expertise to help us achieve this successful outcome.
