Nick Drainey: Scotland's 'fintech for good' sector is thriving

The ‘fintech for good’ sector is thriving, says Nick Drainey, with firms supporting people to access benefits, low-cost credit, and help charities

Fintech in Scotland is in good health – but it’s not just about companies enjoying revenue growth. Many others in society are benefiting because of the innovation and entrepreneurship in the thriving “fintech for good” sector.

Register for The Scotsman’s Fintech Festival event >>

For Andrew Duncan, founder and chief executive of digital banking software company Soar, it is simple: “If you are able to say you have helped a million people be happier in society, I think that is a much better thing than making a million pounds.”

Duncan believes it is about “identifying a part of society that is in need of help – in our case, financially vulnerable ­people – and working out what technology can be put in place to support them, in a way that is appropriate to their ability to access it.”

He recognises the pace and innovative nature of the sector as being a huge part of the fintech for good agenda, saying: “You want to instigate change as quickly as possible and the beauty is that the founders and entrepreneurs behind fintech tend to operate at a million miles an hour.”

But why do many in the fintech ­sector work towards social good objectives? Duncan says: “More and more, founders and owners of businesses are thinking about what they can give back to society and have greater impact. This can be measured in lots of ways, money being one of them, but it is not necessarily the most

effective way.”

The future will see less use of cash in our society and the take up of more money management apps, with both payments and access to money becoming much simpler.

“More than a million people are unbanked in the UK and with innovative approaches, it will be possible to allow them access to basic bank accounts,” says Duncan.

“From a financial wellbeing perspective, people will have access to more of the right tools to help them achieve their goals.”

Amiqus

Callum Murray, chief executive

What do you do?

We make trusted and secure software to help people remotely verify their identity when engaging with companies – typically when moving house, renting a flat, moving jobs or getting help from a solicitor or accountant. We operate with a profit-for-purpose business model which means we typically find interesting and purposeful partnerships and build long-term relationships.

What are your aims?

We recently began working with the Scottish Government through the Civtech programme and see huge opportunity in the public sector to enable trusted and secure access to products and services at a time organisations need to quickly adapt to new ways of working. We’re building towards proving that business can be used as a force for good. Sustainable financial performance and a clear commitment to inclusive growth sit at the core of these plans.

What are you most proud of?

We’ve built trust across sectors and now support tens of thousands of people every month. I’m most proud that Amiqus is powering the compliance aspects of Proxy Address, an initiative providing people who are at risk of homelessness with a way to access financial and social care services when they need them most.

Soar

Andrew Duncan, founder and chief executive

What do you do?

More than three million people in the UK rely on high-cost credit such as payday lenders to make ends meet. Soar is here to play a part in ending this struggle for the most vulnerable. We’re cracking down on irresponsible lending with our mobile banking app, web app and a platform hub that automates applying for loans for affordable credit providers such as Credit Unions and Community Development Financial Institutions.

What are your aims?

We work with credit unions serving more than 100,000 consumers. We’re looking to significantly grow this. Our vision is that no matter where you live, you have easy access to affordable credit from the palm of your hand. This means innovating in the way we credit score loan applications, make it easier to save and improve users’ financial well-being.

What are you most proud of?

Working at Soar has brought a lot of monumental moments. Very early on, we gained the UK’s largest credit union as a customer and this was pivotal. More recently, we won HM Treasury’s Affordable Credit Challenge with Capital Credit Union. To win and be allowed to further our work in tackling high-cost lending was one our biggest achievements to date.

GiftRound

Craig Forsythe, co-founder and chief executive

What do you do?

GiftRound is an online platform for the group collection of money for buying gifts. Our customers simply create a collection, invite people to contribute and purchase a gift. No more hassle of chasing the envelope and handling cash around the office. GiftRound is a more secure, more efficient and more inclusive solution for work teams, parents collecting for teachers, and friends buying special gifts.

What are your aims?

To become the go-to online platform for group collections for gifts in the UK, and to build technology to enable all our customers an experience that embraces the magic of gift giving. During the pandemic, we introduced a small optional fee for customers to pass on to charities Glasgow City Mission and FareShare that work with vulnerable people. We have plans to enable GiftRound to support charities in the future.

What are you most proud of?

Running our very first collection. GiftRound had been an idea for too long and it was great to see people actually using it to collect for a gift from multiple locations in a way that they couldn’t before. It’s also been great to see people use GiftRound in lockdown with teams keeping connected working from home and still showing they care.

Sustainably

Loral Quinn, co-founder and chief executive

What do you do?

Our app helps you do a daily good deed, by rounding up your spare change automatically every time you shop - simply choose a cause and connect your card in the app, and have a positive impact every day, wherever you shop. With zero fees on donations and Gift Aid, you track your impact, set your own limits and pause it anytime, with no unwanted communication.

What are your aims?

We’re building rails for sustainable and embedded giving globally, connecting individuals where they work and shop, as part of everyday life - on one platform - to do good. Our platform will enable businesses to give to causes their customers and employees care about, wherever they are, leading the transition toward connected, sustainable positive impact for people, brands and good causes.

What are you most proud of?

Supporting great causes and creating an app using innovative tech to form new frictionless giving habits. With a simple “plug and play” platform for brands, hassle-free fundraising for charities and frictionless giving for consumers, we make doing good simple for everyone. We’re proud to be creating a future where doing good is effortless, sustainable and part of everyday life.

Nbest

Manu Peleteiro, chief executive

What do you do?

We offer a benefits assessment platform to help individuals and welfare advisers understand benefits entitlement, generate benefit application forms and monitor entitlement according to changes in personal circumstances.

What are your aims?

To become the most trusted benefits calculator in Scotland.

What are you most proud of?

Collaboration with the University of Edinburgh, Scotcash and Advice Direct Scotland to help the vulnerable access affordable loans.