Two British fintech companies partnered to provide public sector and National Health Service (NHS) workers in the UK access to low-cost credit and social benefits. The award-winning partnership is an example of work done on financial inclusion and comes under the social area of
ESG (Environmental, Social and Governance).
It is often difficult for these workers to secure low-cost credit due to limited credit history or lack of awareness about various social welfare schemes. In need, they often turn to high-interest debt and end up paying heavy processing fees, forcing them into more financial uncertainty and debt.
This innovative partnership solves the problem by tackling its two aspects collectively.
The first partner, the loan provider, makes funds from £500 up to £1,000 available to its customers and helps them identify various government schemes & benefits available to them.
The second partner works on open banking infrastructure. Its API (Application Programming Interface) enables the first partner to extract financial information directly from applicants’ bank accounts in order to create a true picture of their financial situation in real-time.
Customers receive funds that match their financial status and affordability.
During the pandemic, the partnership processed over 2000 applications within 2 months, providing NHS employees access to affordable credit of over £600,000 (15th July 2020).
The partnership has helped identify unclaimed potential benefits of around £979,000, informed over 26,000 applicants of benefit eligibility, and lent over £20 million to over 19,000 individuals (2nd September 2022).
It won the prestigious FinTech for Good award at FinTech Awards London in 2022.
