Throughout January, The Fintech Times has been exploring the theme of ‘fintech for good,’ focusing on how fintech solutions support financial inclusion. This led me to a dynamic panel discussion at the Edinburgh Futures Institute this week, which examined how fintech innovations could help bridge the financial inclusion gap in Scotland.
As part of his remit to be a global ambassador throughout the UK, the Lord Mayor of the City of London Corporation, Alistair King, joined businesses and fintechs in Scotland on Tuesday 28 January for a discussion of how Scotland’s growing fintech market can continue to support financial inclusion.
Earlier this year, the City of London Corporation signed a partnership agreement with the Scottish Government committing to prioritising actions that support those who find it difficult to access fair or affordable financial services, such as free banking and affordable credit.
Scotland’s financial and professional services sector contributes over £14billion annually to the UK economy and employs 160,000 people. Edinburgh and Glasgow are thriving hubs of innovation, driving advancements in banking, insurance, asset management and fintech.
King began the discussion by saying that in the face of current economic challenges, it is more crucial than ever to maintain these vital connections.
“The theme of my mayoralty is ‘growth unleashed’, aiming to reignite the City’s appetite for positive risk and fully leverage the white heat of new technology to fuel economic growth across the UK” he said. “For this transformation to succeed, it must be supported by our financial and professional services industries nationwide, with Scotland playing a pivotal role in driving this growth.”
Fintech for good
With the partnership in agreement to promote UK financial services, focusing on investment, green finance, AI, fintech and data, King was in Edinburgh to highlight the importance of Scottish representation in international trade delegations and the local tech-savvy workforce.
With one in five adults in Scotland not having access to a bank account and many more excluded from affordable credit and essential financial solutions, the panel went on to discuss a problem which transcends borders as over one million adults in the UK currently struggle to access mainstream financial services.
Panellist Tynah Matembe, CEO of MoneyMatix, an organisation that provides inclusive financial education, addressed how fintech is tackling financial exclusion. She shared with the room how when she moved to Scotland from Uganda it was a severe financial culture shock for her previously financially comfortable and educated family.
They quickly had to navigate the world of credit scores and card payments just to find somewhere to live. Back home, cash was king and so arriving with a large amount only saw her come under increased scrutiny from banks when she tried to open an account and prove her origin of funds.
When Matembe decided to change from her successful career in law to start MoneyMatix, many in the industry believed she was operating a non-profit, simply because she was in the business of fintech for good.
Speaking on the ‘misconceptions’ of those who are unbanked, she explained how they struggle with so-called ‘poverty premiums’ and the perception that they must be poor. Something that could be addressed by increased financial education and the need for inclusive financial services.
Using data
Kirsty McKenna, innovation programme manager at Fintech Scotland and David Tracy, head of data product at Smart Data Foundry, a not-for-profit subsidiary of the University of Edinburgh using financial data to tackle societal issues, spoke about the ways the industry is working together to tackle such problems.
McKenna shared how FinTech Scotland aims to create economic and social impact through financial inclusion initiatives. The organisation works with various partners, including the Scottish Government, UK Government and the City of London, to promote financial inclusion. She added that as part of a working group, it is currently developing a financial inclusion dashboard to track and analyse data on financial inclusion.
Meanwhile, Tracy revealed that through industry partnerships, data sharing and using research to understand financial exclusion, Smart Data Foundry is continuing in its mission to tackle poverty and inequality through financial inclusion.
It has developed dashboards and tools to help local authorities and schools, and through the use of synthetic data, he also highlighted its potential to address data security and innovation barriers.
Smart research
The company is also currently collaborating with the Financial Conduct Authority (FCA) and other financial organisations such as NatWest Group, which have led to the development of innovative financial inclusion tools and products including the Financial Data Service (FINDS) after securing £3million in funding.
This new initiative, part of the UK Research and Innovation-funded Smart Data Research UK programme, will empower researchers with secure access to de-identified financial data, unlocking insights into household financial health, economic resilience, and regional productivity. It is also now part of a national network of six data services driving the UK’s leadership in smart data research.
Indeed, Zachary Anderson, chief data and analytics officer at NatWest Group, recently asked on LinkedIn for more UK banks to take up the call and work with financial inclusion data.
He wrote: “At NatWest Group we believe in the power of responsible data sharing to help drive positive change. Through our partnership with Smart Data Foundry, we share de-identified, aggregated data that informs research and delivers insights on critical societal issues — from reducing economic inactivity to improving financial resilience.
“Access to real-world financial data through open banking helps policymakers, researchers, and charities better understand the financial realities people face and make smarter, data-driven decisions. The benefits are clear: More informed, evidence-based policies. Better support for vulnerable groups. A healthier, more resilient economy for all.
“We’re proud to be one of the first UK banks to share data in this way — but we can’t do it alone. Imagine what we could achieve if more financial institutions joined the movement. Let’s make data for good a collective effort that benefits everyone.”
Panel insights
Taking questions from the floor, the panel focused conversations on the importance of measuring outcomes, particularly after the implementation of Consumer Duty in financial services. And alongside this, a need for a common language and collaboration across sectors to include financial inclusion. What’s more, the importance of grassroots programmes and engaging with diverse communities was stressed many times, alongside the necessity to budget accordingly for their help and advice.
Participant Guy Wells, data scientist at Glasgow City Council from the Centre of Civic Innovation shared that the council had recently put such facilities in place and this approach was actively working to encourage organisations to share their inputs.
As to the question of ‘What Next?’, the Lord Mayor highlighted a predecessor’s commitment to financial education. Back in 2023, the then Lord Mayor of the City of London Corporation, Nicholas Lyons, put together a steering group, endorsed by the FCA, Aviva and voices in Government that recommended a six-point plan to address low levels of financial literacy, inclusion and numeracy across the UK.
King also believes that 2025 is the year to revisit these initial plans and gain renewed support from both the private sector and Government, harnessing fintech innovation to increase financial inclusion.
The post Fintech for Good: Scotland’s Push for Greater Financial Access appeared first on The Fintech Times.
