Nationwide Building Society has picked seven fintech startups to take part in its £3 million challenge to develop Open Banking-based apps and services that help financial vulnerable people.
The Open Banking for Good challenge aim to tap into the power of Open Banking to improve the lives of the one in four UK households who are financially squeezed - equivalent to 12.7 million people.
Nationwide says that it had more than 50 applicants for the challenge, settling on seven that fall into three categories: income and expenditure - Openwrks and Ducit.ai; income smoothing - Trezeo and Flow; and money management and help - Toucan, Squad and Tully.
The firms will work with Nationwide and several experts such as the Money Advice Trust to develop their ideas in two stages: a three month 'explore and develop' stage, followed by a six month accelerator split between a lab run with Accenture and a period scaling the solutions across Nationwide's membership.
Joe Garner, chief executive, Nationwide, says: "While others may be looking at Open Banking through a commercial lens, Open Banking for Good is driven by our social purpose. The programme will see us partner with some of the UK’s smartest fintechs, debt charities and academics to use this revolutionary new technology to support people facing financial challenges."