Fintech's Lifeline: How Scottish Innovators are Combating the Cost-of-Living Crisis

The cost-of-living crisis is pushing growing numbers of people and businesses into uncertainty as they struggle to keep up with soaring bills. With everything becoming more expensive, there is an increased need for financial help. In response, Scotland's thriving fintech sector is stepping up to the plate, leveraging technology and data-driven solutions to provide a lifeline to those in need.

Empowering Individuals and Businesses Through Innovative Fintech

Unlocking Financial Assistance and Benefits

Scottish fintech companies are using data-driven solutions to identify financial vulnerability and enable early intervention. One such example is Inbest, which recently partnered with NatWest to help bank customers affected by the cost-of-living crisis access benefits they may have been unaware of or unable to claim. By leveraging technology to understand individual circumstances, Inbest has been able to uncover up to £900 per month in unclaimed funds for some customers.Another company, Lightning Reach, is working with charitable organizations and government bodies to connect individuals in financial need with available support, such as grants and local welfare funding. By providing a single portal for users to easily find and apply for assistance, Lightning Reach is streamlining the process and ensuring that vital resources are distributed effectively.

Empowering the Unbanked and Newcomers

Scottish fintech companies are also addressing the challenges faced by the unbanked and those new to the UK. MoneyMatiX, for instance, is focused on improving financial literacy within the immigrant community through innovative workshops and educational programs. By informing and empowering these individuals to make sound financial decisions, MoneyMatiX is helping to bridge the gap and provide access to vital financial services.

Supporting Businesses in Uncertain Times

The fintech sector in Scotland is not only supporting individuals but also providing crucial assistance to businesses struggling with the current economic climate. Companies like Float, a cash-flow forecasting tool provider, and Inicio.AI, an AI-driven debt support software provider, are helping to alleviate the pressure on businesses and individuals during these uncertain times.Additionally, Scottish fintech company Know-it offers a platform to simplify credit management, automating credit and debt positions and assisting business owners in collecting overdue invoices and making informed decisions when issuing credit. The company has praised the supportive ecosystem in Scotland, highlighting the vital role of organizations like Scottish Development International and the UK Department for International Trade in helping businesses thrive.

Fintech for Good: Leveraging Technology to Improve Financial Wellbeing

The fintech companies in Scotland are not just focused on providing practical solutions; they are also driven by a sense of purpose and a desire to create positive change. DirectID, for example, is using open banking technology to support the gig economy and workers with multiple income streams, enabling them to access more mainstream credit by verifying their income and expenditure.This intersection of technology, finance, and social impact is a hallmark of the Scottish fintech ecosystem. As Nicola Anderson, CEO of FinTech Scotland, explains, "Fintech can create the tools that will allow people to make good choices about how they live their financial lives. That intersection between financial policy and financial services is vital as we think about the evolving digital economy."The growth and investment in Scotland's fintech sector, with 27% of the community having an international headquarters, demonstrate the opportunities that global businesses see in establishing a presence in the country. This vibrant ecosystem, supported by organizations like FinTech Scotland and Scottish Enterprise, is fostering innovation and driving positive change in the face of the cost-of-living crisis.