Janine Hirt
CEO, Innovate Finance
Today, eight out of every ten adults in the UK regularly use a fintech tool. Consumers are struggling with the increasing cost of living, and fintech can help through this challenging economic period.
Fintech has transformed the way individuals and businesses interact with financial services — driving efficiency, increasing transparency, reducing cost, expanding access and ultimately creating a more democratic and inclusive sector.
Advancing fintech tools
Many household fintech names were born after the financial crash of 2007–08, as innovators and disruptors stepped in to rebuild trust and resilience in the financial services system. The motivation and drive to put customers at the centre of the proposition have contributed to the success of the fintech sector.
Fintech tools offering support
Fintechs continue to create better solutions during the economic downturn. Solutions range from providing free budgeting opportunities to subscription management tools, credit score improvement options and beyond.
Atom Bank, for example, has started to reach out to customers to provide support options including access to an income and expenditure hub.
Starling Bank has launched an easy-to-use Budget Planner with an overview of what and where people spend that helps to identify where spending could be cut back.
The motivation and drive to put customers at the centre of the proposition have contributed to the success of the fintech sector.
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Money management app Moneyhub allows users to see all their finances in one place, track their spending and create budgeting goals.
Through partnership with PayPoint, ClearBank is facilitating a fast and accessible way for over 140,000 unbanked individuals to receive their government payouts. Using their cloud-based API, ClearBank’s real-time settlement technology means people without a bank account can receive cash payments related to 29 different benefit types (e.g. Universal Credit, Disability Living Allowance, Carer’s Allowance) instantly.
Collaborating with employers
Karma Technologies works with employers to provide ‘in-kind’ salary advances to their employees through coupons worth up to £300 that can be used at a range of retailers. The service — free of charge to the employees and employers — allows people to make necessary spending ahead of their payday without the need to take out a loan.
These are just a few examples of the many fintechs striving to make financial services more accessible and inclusive.
Growth in the UK financial services sector
It is heartening to see the UK continuing to maintain its global leadership in fintech, as outlined by our recently published 2022 Fintech Investment Landscape.
The growth and ongoing success of our UK fintech sector mean that more people across the country can benefit from these new and improved solutions and make their money work better for them.
