Consumers at the Heart of Innovation: Financial Health Evaluation in the UK Regulatory Landscape

This whitepaper examines the evolving landscape of financial services in the UK, with a focus on consumer-centric innovation and the regulatory framework supporting financial health. Against a backdrop of rising household debt and consumer vulnerabilities, we explore how innovative fintech solutions, enabled by emerging technologies, are reshaping the evaluation of financial health beyond traditional credit scoring methods.

The paper provides an in-depth analysis of the current regulatory environment, including the Financial Conduct Authority’s (FCA) Consumer Duty and other initiatives aimed at enhancing financial wellbeing. A case study demonstrates an AI-driven framework for intelligent credit scoring, illustrating the potential for more holistic financial health assessments.

We discuss the critical role of Open Banking and Open Finance as enabling infrastructures for innovation, while emphasising the importance of data protection and digital ethics. The paper also outlines key directions for fintech innovation that prioritise consumer needs.

Looking to the future, we examine emerging trends in consumer innovation, potential regulatory developments, and the long-term impact on the financial services industry. The paper concludes that by placing consumers at the heart of innovation, the UK financial sector can build a more resilient, inclusive, and sustainable future, setting a global benchmark for fostering financial health in an era of rapid technological change.

About FRIL

FRIL is part of the larger Glasgow City Region Innovation Accelerator programme with Glasgow, one of three pilot regions’ – including West Midlands – sharing a £100m investment aimed at transforming R&D within the UK. Led by Innovate UK, and delivered by Fintech Scotland in partnership with the University of Strathclyde and the University of Glasgow, this programme supports the UK Government’s levelling-up agenda by empowering local regions to drive economic growth through innovation. This approach not only supports regional development but also positions the UK as a leader in the global innovation landscape.

Read more