Financial Inclusion through Fintech: Bridging the Gap
This latest edition of our student blog series comes from Dharini Mohan, who is currently pursuing an MSc in Financial Technology (FinTech) at UWE Bristol. She is also a part-time Service Associate at Hargreaves Lansdown.
Wondering what is ‘financial inclusion’? Deloitte UK defines it as making financial products and services accessible and affordable for everyone, especially those in vulnerable circumstances. As the year wraps up, let's explore how the UK fintech industry advocated for financial inclusion in 2023.
Digital Wallet for All
Monzo, goes beyond mere convenience, addressing the risks associated with gambling-related issues. Through a strategic partnership with GamCare, Monzo has implemented 87% of GamCare's recommendations aimed at supporting customers susceptible to gambling harm. The bank, anticipating such challenges, has proactively taken measures to empower customers with increased control and flexibility. This initiative allows Monzo users to exert more authority over blocking gambling spending from their accounts. The introduction of these features is accessible to everyone, in line with supporting all their customers and being inclusive.
Remittances and Cross-Border Transactions
Wise, renowned for its "no hidden fees" approach to international money transfers across 160 countries and supporting 40 currencies, has a dominant force in foreign transfers. With over 16 million customers in 2023, Wise demonstrates its commitment to simplifying cross-border transactions for a diverse range of users. An exemplary illustration is how Wise facilitates affordable remittances for migrant workers, international students, or anyone living abroad, showcasing its dedication to financial inclusivity. Beyond just transfers, Wise has diversified its services, offering a multi-currency account and tailored solutions for businesses. It's more than a money transfer service; it's a financial ally on a global scale.
Accessible Credit Scoring
BuildMyCreditScore, the UK’s first credit builder debit card, won a £200,000 grant from Innovate UK, for its mission of reshaping financial inclusivity through open banking. Functioning as a Mastercard debit card, it empowers users to elevate their credit scores without altering their spending habits or taking on additional credit lines. Tailored for everyday expenses like coffee, train fares, and monthly subscription payments for Netflix and Spotify, this debit card ingeniously turns routine purchases into impactful credit score enhancements. The genius lies in its ability to open doors to credit for individuals with limited credit histories, marking a significant stride in financial accessibility.
Financial Literacy Initiatives
Zopa has unveiled the ambitious 2025 Fintech Pledge – an initiative involving a collaboration with The Money Charity to launch a financial education program tailored for those most affected by the escalating cost-of-living crisis. Kicked off in late February 2023, this impactful initiative is scheduled to continue its efforts until December 2025. As part of this program, The Money Charity aims to engage with a broad audience, reaching thousands through a comprehensive free Massive Open Online Course (MOOC) on financial well-being as well as interactive workshops for smaller community groups. The bank's commitment to this substantial project demonstrates its dedication to fostering financial literacy and aiding those navigating economic challenges.
Financial inclusion, a cornerstone of societal progress, ensures access to essential services for everyone. In embracing this principle by fostering knowledge, breaking barriers, and leveraging technology, societies pave the way for economic empowerment and equality, promoting a more inclusive and resilient global economy.