Strategy
We apply our economic and financial expertise to help firms develop and rigorously test commercial and regulatory strategies, to help them make evidence-based decisions that are grounded in robust thinking. Our insights have proven invaluable for the payments sector in particular, where complex market environments are coupled with regulatory scrutiny.
how we can help
In sectors where the economic interactions between market participants and their customers are complex and attract regulatory scrutiny, insights from economics and finance can provide a robust foundation for strategy identification and evaluation.
We follow a three-stage framework, which is designed to help firms and their decision-makers develop and rigorously test commercial and regulatory strategies, to help them make evidence-based decisions that are grounded in robust thinking.
A
We help our clients identify the range of feasible commercial alternatives and develop a set of evaluation criteria from their objectives against which potential commercial and regulatory strategies are assessed. Application of our economic and financal expertise provides a robust foundation to ensure strategies are developed and evaluated through a consistent lens.
B
We assess the merits and demerits of the feasible alternatives against the evaluation criteria. Our economic and financial expertise provides an extensive toolkit when assessing alternatives, including technical modelling of how different customer cohorts are likely to respond to each option, scenario analyses focussed on KPIs for how the different options may perform, and likely perceptions of the options by regulators.
C
We support our clients to determine the most appropriate course of action and with aspects of its implementation, such as communicating findings effectively, and in plain english, through stakeholder consultation with regulators, current and potential customers, and end users.
Our experts have extensive experience advising clients operating in the payments sector on their commercial and regulatory strategies, both in the UK and internationally, where complex economics of two-sided markets, significant disruption from within and outside the sector, and increasing regulatory and political scrutiny are commonplace.
Explore all our services
Regulatory Finance
Competition Finance
Strategy
Latest insights
A response to Ofgem’s consultation on frameworks for future systems and network regulation
We repost our response to Ofgem’s consultation on frameworks for future systems and network regulation. This response considers how changes to the regulatory framework might affect the financial environment for energy companies, their financing decisions, and the expected returns required to compensate their investors for changes to their level of risk. Read more
Trumping the US card giants: can Britcoin improve competition in retail payments?
The BoE's digital pound consultation signals a move by the BoE into retail payment systems that could put it head to head with Visa and Mastercard. Kairos Economics has responded to the consultation, highlighting the potential benefits of a digital pound for competition in payments and some key challenges for the BoE to work through, if it is to realise these benefits. Read more
Don’t throw the baby out with the (Thames) bath water
Is our model for the supply of water broken? At Kairos Economics we consider that answers to the current financing challenges lie not in the scrapping of the UK’s current regulatory framework for network financing, but in important changes to its implementation. We also highlight the benefits of mandatory public listing requirements across regulated networks, which could form part of the solution. Read more
GET IN TOUCH
If you’d like to discuss how we can support you or if you’re interested in career or collaboration opportunities, please get in touch.
