About Us
The goal of the Lab is to develop quantitative finance and data analytics solutions that will enable Canadian households to enhance their financial resilience. Combining state-of-the-art actuarial and financial models and comprehensive proprietary datasets provided by our corporate partners, the partnership will provide insights and solutions for Canadians to help facilitate data-driven financial decision-making. Our industrial partners are committed to making these insights and solutions broadly available at the workplace or in the home.
Mandate
The goal of this partnership is to develop quantitative finance and data analytics solutions that will enable Canadian households to enhance their financial resilience. Financial wellness and resiliency are complex topics that have been studied by a number of disciplines. In addition to the mix between subjective and objective variables, research has been hampered to date by data inaccessibility. This is a result of proprietary data in this arena often analyzed within a particular agenda. Our Lab solves for these issues as it encompasses a plethora of granular data sourced historically and, moving forward, in real time. With the assistance of machine learning, we will be able to examine these data sources and look for subtle relationships and trends that have not been previously studied.
A financially resilient individual is able to withstand financial setbacks such as sudden loss of income or unanticipated expenses. Low levels of financial resilience are a strong predictor of financial stress and financial stress can lead to more serious health problems. Financial stress is alarmingly widespread among the Canadian population. If a large fraction of Canadian households is financially fragile, Canadian Society is less able to withstand unexpected shocks.
The events of 2020 and the economic impact of COVID-19 give increased urgency to the topic of financial resilience. The financial cost on all levels of government for financial countermeasures to COVID-19 are becoming apparent. A better understanding of the prevalence and type of financial fragility in Canadian households may allow more targeted policy interventions. In an update to the CPA research noted above, the number of Canadians falling into the financially stressed category doubled over the first 6 months of 2020. There is clear value in helping financially stressed individuals understand the root of their financial challenges. This includes providing them with advice (tailored to their specific circumstances) on the steps they may be able to take to change their situation and alleviate their financial stress.
Relevance to Canada
Main Contacts
Matt Davison
Principal Investigator
Matt is the Director of the Financial Wellness Lab of Canada and a Professor in the Departments of Mathematics and of Statistical & Actuarial Sciences at Western University, where he also serves as Dean of Science. He has authored more than 70 peer-reviewed academic articles and a textbook on quantitative finance.
Chuck Grace
Program Director
Chuck teaches courses on institutional investing, personal wealth management and Fintech at the Ivey Business School and serves as the Program Director for the Financial Wellness Lab. He has a particular interest in the area of financial advice and the impact of emerging technologies. Prior to pursuing his passion for teaching Chuck held a progression of senior management positions with one of Canada’s largest insurance and wealth management companies.