How is Lloyd's Bank Leveraging Consumer Behaviour Insights?

Lloyds Banking Group's collaboration with behavioural health fintech Good With is shifting the skills financial services organisations need to support customer financial wellbeing.

The partnership, which has progressed from trial to full commercial experiment, demonstrates how expertise in behavioural science is becoming increasingly valuable to finance leaders.

The initiative combines traditional banking with psychological frameworks to help customers develop healthier financial behaviours.

This approach requires finance professionals to work alongside specialists in cognitive behavioural therapy and data science, highlighting how the industry's talent requirements are evolving beyond conventional financial expertise.

Understanding behavioural financial technology

Bank accounts are linked to Good With's Readiness Score. Coupled with answers from science-backed questions, the Readiness Score provides consumers with insights into their financial behaviours and patterns.

Benefits of this include the ability to track progress, build financially healthier habits and even build credit confidence.

Acting as an alternative to traditional credit scores, it also shows lenders that a consumer is ready for credit.

Lloyds is using the data from the Readiness Score to expand its lending criteria. According to the bank, Good With improves arrears predictions by 10% as the data reveals new customers.

Sam Clark, Director of Customer Affordability and Data at Lloyds, says: "We are committed to supporting the financial resilience of our customers. This trial with Good With is an exciting step forward in providing innovative, personalised tools that empower individuals to build a stronger financial future.

"We believe that proactive, educational support is key to helping people navigate their financial lives with greater confidence."

Developing cross-disciplinary expertise in banking

Good With has established itself as a fintech with evidence-based and cognitive behavioural therapy (CBT)-informed solutions. The company aims to provide personalised journeys using data to help individuals develop healthier financial habits and wellbeing.

The collaboration shows that financial institutions need to recruit or develop talent with competencies that bridge finance, data analytics and behavioural psychology.

Good With graduated from the Lloyds Launch Innovation programme in 2024, given to a select few to run a commercial experiment with Lloyds Banking Group.

Gabriela Isas, CEO & Founder at Good With, notes: "We are extremely honoured to be supported by the Lloyds customer propositions team on this project, which will see our product referred to customers who will benefit from personalised financial capability building support.

"Working collaboratively with Lloyds teams has really strengthened our proposition and we look forward to the benefits this collaboration can bring to more people."

This partnership demonstrates how traditional banking roles are evolving to incorporate new skill sets that blend financial acumen with technological innovation and psychological understanding.

Building capabilities for digital innovation

Lloyds has showcased its dedication to innovation not only through the partnership with Good With, but also with an open mind to the use of blockchain technology. The bank was first in the UK to use Tokenised Deposits to purchase a Tokenised Gilt on a public blockchain.

Surath Sengupta, Head of Transaction Banking Products at Lloyds, says: "This transaction offers a glimpse into the future of finance; faster, smarter and more efficient. Tokenisation allows us to bring real-world assets onto blockchain infrastructure, creating opportunities for businesses to transact with greater speed, transparency and flexibility."

The forward-thinking bank has demonstrated that it balances business and consumer innovation with its dedication to new approaches around how clients and consumers interact with money.

These developments show that the financial services sector is entering a new phase where technical expertise, behavioural insights and traditional banking knowledge must converge to meet customer needs effectively.