Scottish fintech helping poorest households access thousands in unclaimed benefits
Not for profit community lender Scotcash launches new online Benefit Checker, finds nearly three-quarters of users missing over £4000 per year they could be claiming
A new, automatic online service will help some of the UK’s 8 million financially vulnerable households which currently miss out on £16 billion in benefits they are due.
Not-for-profit lender Scotcash said its new benefits calculator, provided by Inbest, an award-winning fintech, will automatically compare the actual benefits people receive with the benefits they are entitled to, based on their specific circumstances and financial situation.
The calculator is integrated within Scotcash’s online affordable loan application process and notifies customers about any unclaimed benefits before guiding their applications. It will help people in households who are unaware of their entitlement, wrongly assume they are not eligible or think an application is too complicated.
The feature is already helping loan applicants to top-up their salaries with their benefits entitlement, reduce their bills, apply for smaller amounts of credit, repay their loans more comfortably, and build savings in the future.
Sharon MacPherson, CEO of Scotcash, said:
“Financial insecurity is expected to be a bigger reality for more people as a result of the end of furlough, increased utility bills and higher national insurance contributions so it’s more important than ever people claim everything they are entitled to. We are delighted to enhance our existing customer support with this much needed new service.”
Manu Peleteiro, co-founder of Inbest, said:
“We believe that partnering with companies that offer complementary services is the most efficient way to reach people that are missing out on their benefits. We are super proud of the impact that this partnership is making on Scotcash customers, so far we’ve identified that 70% of loan applicants were missing on average £465 each month on benefits.”
The impact is even bigger for households with children, who can claim additional benefits of £565 per month they currently don’t.
“Affordable credit can be a lifeline for people who have difficulty accessing mainstream sources, such as banks and building societies,” added MacPherson, “but Scotcash has always been more than just an ethical lender and determined to help customers build their financial well-being. If they don’t access the benefits they are due, people can end up in worse financial situations. We’re thrilled to see the immediate impact this calculator is having on our customers’ lives.”
The power of FinTech responding to the world’s worst humanitarian crises
Photo: Nur Jahan* and her daughter Ismat* (names changed to protect identity) live in the world’s largest refugee camp near Cox’s Bazar, Bangladesh. DEC funds have helped provide them and thousands of other Rohingya refugees with handwashing facilities and advice on how to stay safe from Covid-19. – Credit: Fabeha Monir/Oxfam
Article written by Huw Owen, External Relations Manager, Scotland for DEC – Disasters Emergency Committee
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When large-scale disasters hit countries without the capacity to respond, the DEC brings together 14 leading UK aid charities to raise funds quickly and efficiently.
In these times of crisis, people in life-and-death situations need our help and our mission is to save, protect and rebuild lives through effective humanitarian response.
Pooling our resources to work as one, we are pivotal in co-ordinating the UK public’s response to overseas disasters. In collaboration with our Rapid Response Network of national media and corporate partners, we raise the alarm to the UK public and set up easy ways to donate.
And we have immediate impact, getting aid to people who need it, fast.
Our current Coronavirus Appeal is funding work in eight countries – Afghanistan, Bangladesh, DR Congo, India, Somalia, South Sudan, Syria and Yemen. This includes six of the world’s most fragile states, the Rohingya refugee camps in Bangladesh, and India, which was hit by the worst outbreak of Covid-19 yet seen during the pandemic in April and May 2021.
Millions of people living in fragile states have little access to medical care or clean water, making them much more vulnerable to new, more contagious variants of coronavirus.
But in many countries the economic effects of the pandemic could be even more deadly than the virus itself as millions of people are pushed towards famine due to falling incomes and rising food prices. Hunger can be particularly devastating for children, leading to malnutrition which in the worst cases can be fatal.
The DEC is focused on
- supporting fragile health systems with PPE, equipment, and isolation and medical care facilities
- helping to give vulnerable families the means to protect themselves with water, soap, handwashing stations and information
- ensuring that the Covid-19 crisis doesn’t mean people go hungry and children become malnourished.
The UK banking and FinTech sector has had a big impact on the success of this appeal. There are several actions that corporate partners can take in support of DEC Appeals, but probably the most powerful by far is a combination of what we call “Amplify” – getting the word out to customers, clients and the public at large; and “Experience” – creating innovative new donation channels for the appeal. This combination of Amplify X Experience has delivered incredible results by raising millions of pounds in vital humanitarian aid for the people who need it most. Here are some examples of successful partnerships in this space:
The NatWest Group introduced a notification within its banking apps, prompting users to donate to the DEC Coronavirus Appeal, with incredible results.
The notification was live between October 2020 and January 2021 in the NatWest and Royal Bank apps, and raised an incredible £356,000 for the appeal. It went live again when the DEC extended its appeal to include India as a devastating surge of coronavirus overwhelmed the country, raising an additional £225,421 for India over three months.
Revolut also featured the DEC Appeal in their app ”“ Revolut has a dedicated Donations section, where over 30,000 Revolut customers have donated £262,000 to the DEC Coronavirus Appeal for India.
The DEC’s collaboration with PayPal Giving Fund has helped raise millions of pounds to benefit our appeals: in the 2019 DEC Cyclone Idai Appeal an incredible £1,320,000 was raised for emergency response, as strong winds and widespread flooding ripped apart roads, bridges, houses, schools, and health facilities and submerged vast swathes of agricultural land. Across Mozambique, Malawi and Zimbabwe, at least 900 people were killed and around three million were left in desperate need of humanitarian assistance.
PayPal amplify DEC appeals by sending email communication out to all opted-in PayPal customers at appeal launch. PayPal helps improve supporter experience by creating dedicated fundraising pages and using their “Give at Checkout” initiative. With this simple yet incredibly effective action, almost £1,000,000 was raised to benefit the DEC Coronavirus Appeal.
You can help us to build on these partnerships, harnessing the significant outpouring of concern and generosity that the UK public shows in the face of the world’s worst humanitarian crises.
Get in touch with the team at partnerships@dec.org.uk, we’d love to hear from you and explore how your FinTech can be a part of the UK’s life-saving response to international disasters.
Discovering the Digital Technology Education Charter
The uptake of Computing Science in schools has fallen dramatically over the last decade, along with the rapid decline of Computing Science teachers numbers in Scotland and there are now too many schools in Scotland that do not offer the subject
In contrast, Scotland has an exciting digital tech sector with excellent tech courses at college and university, and an enormous amount of goodwill to help inspire the next generation into the world of tech.
To give you some context behind the motivation of the charter. In Scotland Computing Science at schools is a subject that has experienced a dramatic decline and currently had a very low uptake of pupils picking the subject, a widening gender gap and a decline in Computing Science teacher numbers. There has been a consistent downward trend over the past two decades, it is extremely alarming as the figures below go someway to illustrating;
2001 – 28,393 pupils were studying the subject at schools. As of 2020, we only have 10,228.
2001 – 9,825 females were studying the subject at schools. As of 2020, we only have 2,388.
Computing Science at schools needs immediate attention before it is too late, which I fear is a lot closer than we think.
I am hoping you can help me try to reverse this situation, help inspire the next generation and take part in our National campaign.
The Scottish Technology Ecosystem Review, authored by Mark Logan highlighted a number of challenges Scotland faces with regard to Computing Science at school and puts education at the heart of the solution. The Digital Technology Education Charter recognises that if industry and education can work more closely together and join forces we can make a real impact.
This charter is for individuals, schools, colleges, universities, and organisations of all sizes from all sectors. If you want to do more to help inspire the next generation and encourage them to choose Computing Science then join our charter. Together we can do more, we can make a difference.
Get involved here
How the Open University is supporting employers in Scotland to tackle the digital skills gap
There is a thriving Fintech sector in Scotland ”“ a lot of small to medium-sized enterprises (SMEs) are innovating and growing and doing great things. But the sector needs the right skills in order to keep innovating and growing and some of the most business critical skills are in short supply.
With so much demand on skills such as cyber security, coding, data and software development, it can sometimes take time to get the right people onboarded. The Open University’s (OU) Business Barometer 2020 found that 60% of employers are struggling to find the skills they need to fill vacant roles.
But there is the scope to change the situation. Employers recognise that the best way to address talent shortages is not just to buy in skills, but to also build up internal pipelines and so many are embarking on upskilling and reskilling initiatives.
The OU in Scotland works with 260+ local employers, helping with their upskilling and reskilling programmes. They provide high quality, targeted workforce development solutions, helping employers understand and meet their current and future talent and recruitment needs.
“We pioneered the concept of continuous, lifelong learning – an approach that is becoming increasingly popular in the workplace. Our innovative tutor-supported online delivery model works particularly well for employers, maximising the opportunity for new knowledge to be readily and directly applied in the workplace. Many of our programmes have a strong work-based element, meaning that individuals enhance their performance through value-add learning on the job’. We ensure learning is flexible and accessible to all,”
Suzanne McQuade, Business Relationships Manager (Scotland) at the OU
As a result, with over 20,000 students, the OU is the most popular university in Scotland for part-time higher education. They provide different career pathways ”“ graduate and postgraduate courses and also smaller, modular courses that enable people to do chunks of learning and build up to an overall qualification over time.
In terms of digital skills, the OU provides numerous options ”“ free resources on the OpenLearn platform, microcredentials, apprenticeships, modules and qualifications in computing and IT, cyber security and data science, postgraduate modules and qualifications in computing, cyber security and technology management.
There are various funded learning opportunities available in Scotland to support employers and individuals. The graduate apprenticeships, which are a great way for employers to recruit new employees or upskill and reskill the existing workforce, are fully funded. There’s the SAAS part time fee grant available to those with a personal income of £25,000 per annum or less and there’s the Flexible Workforce Development Fund offering SMEs funded training up to the value of £5,000.
It is widely recognised that Covid-19 has exacerbated the need for digital skills. Now is the time for employers to be investing in workforce skills, to help them recover from the pandemic and meet the challenges of the future.
To find out more about how the OU in Scotland can support your workforce development needs, visit www.open.ac.uk/business
Lithuania brings diversity, security and efficiency
Contending for the title of Europe’s Fintech hub, Lithuania has been working at improving its regulatory environment and growing a talented workforce for more than five years now. These efforts have not been in vain, as in 2020, the total number of Fintechs in the country already exceeds 230, having more than doubled since 2017. According to the Fintech Landscape Report 2020-2021, published by Invest Lithuania, there is a near 50/50 split between companies founded by Lithuanians and companies that came from elsewhere, including UK’s finest – Revolut, TransferGo, DiPocket, Curve Europe, and SumUp EU Payments. So, what is it that brings the Fintech boys (and girls) to the yard?
Licensed in Lithuania
As the Fintech sector and its adoption rate continue to grow, regulators in Europe see Fintech as a priority, not an afterthought.
“We have chosen to become a partner for the financial sector, promoting innovation and sustainable growth. One of the objectives of our Fintech policy is to strike the right balance between acknowledging and managing potential risks, while also enabling financial innovation,” says Marius Jurgilas, Board Member at the Bank of Lithuania.
In order to help international Fintechs establish themselves in Lithuania, the Bank of Lithuania changed its working language to English. In addition, a special newcomers programme was initiated to help businesses make better decisions and have a direct dialogue with the regulator before even opening a subsidiary in Lithuania. After setting up, companies get to test their solutions in a regulatory sandbox and can receive access to a proprietary blockchain platform (LBChain) and many novel RegTech solutions. Finally, there’s the Bank’s CENTROlink payments system, providing non-banking institutions direct access to around 50,000 banks and branches abroad. On average, more than 260,000 payments, the value of which exceeds 460 million EUR, are made daily through CENTROlink.
A license issued in Lithuania is passportable and opens the doors to the entire EEA. Due to a straightforward licensing process, Lithuania has become a leader in continental Europe when it comes to the number of electronic money and payment institutions issued. Over several years, the Bank of Lithuania has granted 5 special purpose bank licenses, more than 115 electronic money and payment institution licenses. 23 of “licensed in Lithuania” companies hail from the UK.
A community that never stops growing
Despite being a challenging year, 2020 was successful for a majority of Fintechs operating in Lithuania. 87% of the companies surveyed saw their revenue increase, and over a third saw their revenue more than double. Among the businesses with the highest revenue growth were Fintechs in the Compliance, Payments and Financial Software sub-sectors.
The country also saw new international names joining its vibrant community. These include SaaS banking platform Mambu, payment account aggregator Curve, one of the largest money transfer companies in the world Ria Financial, and automated loan provider Saldo Finance.
Lithuania might not be the biggest country in Europe, but it is leading the continent by the number of new ICT jobs created by international companies. It is also considered one of the most multilingual workforces in Europe, with the average number of languages spoken being 2.7. What makes this talent pool stand out is not just the quality, but also”¦ gender equality, as women comprise nearly 50% of it. And its not just the entry-level positions were talking about! 63% of the Fintechs surveyed have at least one female executive. Having such healthy ratios is not surprising, as more than 55% of all scientists and engineers in Lithuania are women.
AML by design
Last year, more than 81 million payments were made within CENTROlink, with Fintechs generating a volume reaching almost €115.8 billion. Both numbers are double what the system saw in 2019. The number of payment service providers accessing the system has also increased from 85 in 2019 to 117 in 2020. With such impressive growth, the topic of anti-money laundering has never been more relevant.
In October of 2020, the Lithuanian government approved the establishment of a Centre of Excellence in Anti-Money Laundering, which aims to share information on money laundering and terrorist financing typologies and set up a dedicated information exchange platform, carry out studies, assessments and analyses, prepare guidelines and legislative initiatives to improve the country’s AML/CTF framework in Lithuania, assist businesses in conducting internal AML/CTF risk assessments, and more. It will officially open its doors in 2021.
Want to find out more about the vibrant Fintech landscape in Lithuania? Download our Fintech Landscape Report 2020-2021 and see what Europe’s prime Fintech hub can offer you.
How Fintech is Disrupting Customer Service
Technology has changed our way of life so rapidly that it’s hard to even call them “disruptions” any more. Indeed, today’s technological innovations are all about looking at our current way of life and seeing how else to improve it. This also means that technological innovations will play a big role in shaping our way of life post-COVID.
In particular, the World Economic Forum notes that fintech will play a key role in helping businesses recover from the effects of the pandemic. And while fintech’s role in helping businesses raise capital or invest their funds is clear, there’s also another key way that fintech can help accelerate business processes.
Fintech and customer service
Customer service is one of the biggest pillars of any business operation, and this holds especially true in today’s increasingly connected society. The average consumer is more discerning than ever, and it only takes one bad Tweet or Facebook post for word to quickly get out about your company.
As such, ramping up customer service practices will play a key role in ensuring that these goals are met. Digital adoption is already strong thanks to fintech innovations such as e-wallets and mobile investment apps, but customers still need to know how to properly manage their money. Providing accessible customer service options will therefore become a true marker for whether a bank is ready to succeed in 2021 and beyond.
How Fintech is Disrupting Customer Service in Different Industries
Banking
The Telegraph has recently called for an overhaul of the traditional banking business model in order to address rapidly shifting customer changes, particularly when it comes to value creation amongst consumers. This process can start by offering in-chat services within mobile applications; as it stands, many banking applications still rely on uploading phone numbers and emails onto their applications should customers need more assistance. Adopting in-app chats speeds this process up, but it also means that fintech companies themselves will have to adopt unified data systems that allow agents to get the information they need within a few clicks.
Supply chain
The speed information is shared is now the foundation of a successful supply chain. A post on staying productive in the new normal by Verizon Connect states that fast information sharing is a marker to customers that your business is constantly improving its services to meet their demands. The site also notes that the faster information is shared the more agile a company can be in responding to a customer’s needs. This allows companies on the supply chain to serve more customers faster. Logistics companies who rely on GPS tracking and management systems to give timely parcel updates are but one example of how this speedy information improves customer service.
Retail
Our previous post entitled ‘Card Issuing and Management: Staying Relevant Facing Ever Faster Changing Customer Expectations‘ shows that fintech companies have a huge role to play in paving the way for a stronger retail industry in the aftermath of Covid-19. Card issuing solutions are in line with the rise of alternative payments, whether through digital platforms or via online currencies. These developments prove that access to varied payment channels plays a big role in improving a business’ overall customer service.
Fintech disruptions are part and parcel of our new normal. Indeed, the impact of fintech on customer service across several industries proves just how pivotal these disruptions are when it comes to streamlining business operations while still keeping customers in the loop. Businesses are now looking to plan for post-pandemic business growth, and it looks like fintech solutions will be an essential tool to meet these goals.
New firm bringing fintech to pubs
Edinburgh start-up pour launched with venues across Scotland in August, their aim; to simplify the cluttered order and pay market that Covid-19 helped create.
Amidst the rapid technology adoption in the hospitality industry, consumer’s needs are being ignored. Patrons are expected to download venue specific apps and create accounts for every place that they visit, something they will not tolerate in the long run.
What is Pour?
Founded by Scottish entrepreneurs Ian Martin and Paul Kirkland, Pour is an online app platform that enables venues to upload and edit their menus, and share them directly with their customers across social media, their website, offline channels, and on pour.
Customers can order and pay through one web app, for table service or takeaway collection in any participating venue. No app download, no account required, just the food and drinks they came for.
Says Ian Martin, Co-Founder of pour:
“We started pour to simplify the consumer’s experience with online order & pay, bringing table & takeaway ordering together on to one platform that businesses of all sizes can afford to join. The platform makes the ordering process contact free, but it’s the reduction in administration time, increase in rate of sale, and access to a broad marketing platform where the true value of pour lies.”
Find out More
Find out more about the platform by visiting https://www.pourit.co.uk or drop the team an email hello@pourit.co.uk
Why fintech Hubb Insure chose Glasgow
When we set about building our business one of the first questions we look at was the location, what was important to us?
Hubb firstly was a challenger to the commercial insurance space, built on modern management structures and a technology stack, built around flexibility and efficiency, our objectives where simple, cheaper more efficient solutions for our clients, happier more focused staff.
Homeworking was always going to be a major part of the mix, but we still needed a base for a head office and training, so we landed on London, Manchester or Glasgow.
London- The heart of the global insurance market, great public transport and connections all over the city, very expensive everything!
Manchester- Cheaper than London, two hours on the train from London, local public transport not so great.
Glasgow- Great flight links to London, good public transport, Scottish Enterprise are great to deal with.
When we had these discussions, it became clear that Glasgow was the perfect home for Hubb over and above the obvious, we have sourced local partners and found that the skill sets in sales, marketing and flexible office space in Glasgow a real positive.
How a fintech is helping people to receive affordable loans
The University of Edinburgh and Scottish fintech Inbest are collaborating on a research project that aims to address the challenge of accessing income benefits and affordable finance swiftly for those individuals who have suddenly been made financially vulnerable as a result of the current COVID-19 pandemic. The project has been awarded a Data-Driven Innovation Grant Innovation and also has the support of Scotcash and Advice Direct Scotland.
The project will propose a new credit assessment method that takes into account the amount of benefits that the applicant is entitled to receive and will suggest a repayment schedule based on the applicant’s timeframe of receiving the benefits and their expense behaviour. This method will help affordable lenders to make better short-term lending decisions for individuals who otherwise may fail to meet the standard credit risk models. The project will leverage on Inbest Benefits calculator and its banking analytics platform to calculate individuals’ benefits entitlement and financial situation.
The project came to light as a response to the priorities underlined by the Scottish Fintech Consumer Panel – an industry group set up by Fintech Scotland that aims to support inclusive fintech business development by connecting citizen advocate groups into the fintech ecosystem. The consumer panel played a fundamental part in the project proposal by defining the project scope and connecting the participants.
Raffaella Calabrese, Associate Professor at University of Edinburgh Business School, said:
“We are delighted to work on such a pressing issue for Scottish citizens as, in the last month, Scotland has seen 130,000 new applications for Universal Credit, compared with 20,000 the same time last year. Our objective is helping financially vulnerable customers to access cheaper sources of financing and improve their resilience to financial shocks. Customers’ credit capacity will be further enhanced as the lending assessment will also include the potential impact of financial recommendations such as their benefits entitlement”.
Manu Peleteiro, CEO of Inbest, said:
“This project is another great example of how Scottish institutions and companies are collaborating to develop data-driven solutions to improve financial inclusion. We are looking forward to sharing the lessons learned from this project on the Fintech Consumer Panel, raise awareness of financial vulnerability and drive new initiatives to improve design access and management of benefits and affordable loans”.
Nicola Anderson, Strategic Development Director at FinTech Scotland welcomed the initiative.
“This initiative demonstrates the real value of bringing citizen and consumer needs to the forefront of FinTech development. Using focused research and data analytics, the collaboration between Inbest, the consumer groups and the University of Edinburgh’s has helped develop an enterprise that can help people at a time of crisis and real need. It’s another great example of how inclusive innovation in financial services can deliver good outcomes for people and society”.
Upskill in the New Year with CodeClan’s Short Courses
Photo by Startup Stock Photos from Pexels
Whether you’re interested in adding to your skillset, or developing your team, short courses are an ideal way to quickly upskill and achieve your career goals.
At CodeClan, we offer two to four-day short courses at our campuses in Edinburgh, Glasgow and Inverness. The subjects carefully chosen by our industry partners, students and alumni and developed by our instructors and other experts as sought-after skills required across industries.
Agile for Effective Teams is a two-day course on new strategies for implementing Agile ways of working across your team. Business and technical leaders will gain insight into the Agile mindset and Scrum (the main Agile framework) and how this can benefit business and projects. Product managers and decision makers will learn how adopting an Agile approach can increase flexibility and increased responsiveness to better meet the needs of your customers and business. Small and large development teams will learn how to work more efficiently as a team and to execute your development projects in an Agile way for greater innovation, flexibility and business satisfaction.
Edinburgh | 30 January
£1,000
If you or your team want to understand development teams and their practices, Understanding Software Development is a three-day course which will help people who interact and work with development teams to understand the development lifecycle and how best to work with a developer’s mindset.
From wireframing tools to APIs and applications, you learn how the internet works and what software developers do and be taken through the stages of a software project to understand how developers work and the tools they use.
By the end of this course you will be able to write a brief that developers will understand and you will have a better chance of accurate planning. Through easier and more productive communication, you’ll create stronger, more collaborative teams.
Edinburgh | 3 February, 28 April
Glasgow | 24 February, 17 March
£1,000
Python is quickly coming one of the most sought-after languages. Whether you want to use it for data or development, Python is used in Fintech, business, finance, R&D, IoT and commerce. CodeClan’s four-day course, Python for Developers covers Python fundamentals, file handling, web programming and frameworks. Students will be able to build a simple web MVC app and understand Python 3.0 syntax. This course is tailored for programmers who already have experience with another language, ideally a scripting language and experience with object-oriented programming.
Edinburgh | 20 April
Glasgow | 3 February, 9 March
£1,900
Get to grips with UX design concepts and methods ”“ from web accessibility and interface design to user testing and more on the three-day course UX Design Fundamentals. You’ll be introduced to UX design concepts and methods, including web accessibility, interface design and user testing. Whether a technical or non-technical professional, you’ll benefit from this opportunity to work through hands-on, practical examples and learn how to build solutions based on customer’s needs.
Edinburgh | 10 February
Glasgow | 17 February
£1,000
Following on from UX Design Fundamentals, UX Advanced is a two-day course explores methods of information architecture (IA) design and testing. Based on practical application, the course requires basic understanding of UX design principles. Join us to learn methods of information architecture (IA) design and testing, explore methods such as Jobs To Be Done in order to run successful requirement gathering sessions with your business stakeholders. Discover tips and tricks that will help you and your team communicate complex requirements.
Edinburgh | 16 March
£1,000
All CodeClan courses can be found here.