“`html
Times are tough for many residents of Scotland. A new look at our economic wellbeing is required. Smart Data Foundry launches the Economic Wellbeing Explorer.
This innovative platform offers an unprecedented view of financial difficulties in Scotland using near real-time data from 5.3 million bank accounts. Thanks to NatWest Group, the Explorer analyzes economic resilience and wellbeing at different levels, including age groups and income brackets. The latest data reveals that nearly 16% of adults in Scotland rely on their overdrafts each month, a figure that rises to 24% among those aged 18 to 39. Additionally, almost one in seven Scots spends at least 20% more than their income, and over a third see their bank balance drop below £100 multiple times each month.
Smart Data Foundry revolutionizes economic resilience analysis in Scotland
In Scotland, Smart Data Foundry is innovating with its new tool, the Economic Wellbeing Explorer. This platform offers an unprecedented view of the economic resilience and financial wellbeing of Scots based on banking data from nearly 5.3 million accounts, with the support of NatWest Group. By leveraging near real-time data, Smart Data Foundry enables in-depth analyses at various levels: national, regional, and local, as well as by age groups and income brackets.
The initial results reveal concerning trends: around 16% of adults rely on their overdrafts each month, with this figure reaching 24% among those aged 18 to 39. Furthermore, nearly one in seven spends at least 20% more than their income, and over a third have their bank balance fall below £100 more than once a month. These statistics underscore the crucial importance of monitoring and improving economic resilience in the region.
How the Economic Wellbeing Explorer facilitates decision-making
The Economic Wellbeing Explorer is designed to be a valuable tool for public bodies, NGOs, researchers, economists, analysts, and journalists. By allowing access to secure and anonymized financial data, the platform facilitates informed decision-making based on concrete evidence. This is particularly relevant in the current context of heightened financial pressures, as exemplified by “Awful April,” a period marked by increases in costs such as municipal tax, energy bills, road tax, and TV license fees.
According to Dougie Robb, CEO of Smart Data Foundry, “The Economic Wellbeing Explorer is a whole new way of securely accessing in-depth financial information, providing a genuine understanding of the nation’s economic wellbeing.” This approach not only allows for more effective targeting of interventions but also helps uncover previously invisible pockets of deprivation.
What are the impacts of the Economic Wellbeing Explorer on Scottish society
Since its launch, the Economic Wellbeing Explorer has already demonstrated its usefulness during the pilot with East Renfrewshire Council. By integrating financial data with other public data, such as financial support applications and DWP data on children living in poverty, the Council has been able to better understand the impact of the cost of living crisis. This integration has allowed for more precise targeting of interventions, revealing areas of deprivation that were previously unknown.
By providing detailed insights into economic resilience, the platform helps guide public policies and social initiatives. This contributes to a more effective allocation of resources, ensuring that support truly reaches those who need it most.
Data security: a major issue for Smart Data Foundry
Handling sensitive financial data requires exemplary diligence in terms of data security. Smart Data Foundry is committed to maintaining high standards of information governance, ensuring the security, confidentiality, and adherence to ethical norms. All data is de-identified at the source, thus minimizing the risks related to confidentiality.
To learn more about the challenges of data security in the financial sector, check out this article here. This diligence is essential to building trust among users and partners, as Smart Data Foundry emphasizes in its initiatives.
The strategic partnerships of Smart Data Foundry
Since its founding in 2022, Smart Data Foundry has established key partnerships with leading financial institutions, including NatWest, Virgin Money, Sage, and Moneyhub. These collaborations provide access to unparalleled de-identified financial data, essential for powering the Economic Wellbeing Explorer. By working with these partners, the foundation can develop relevant insights and innovative solutions to tackle issues such as poverty and inequality.
These partnerships reflect Smart Data Foundry’s commitment to a data-driven approach for the public good, supporting the data-for-good movement that aims to use data to create a positive impact on society, the economy, and the environment.
The future impact of the Economic Wellbeing Explorer in the UK
While the Economic Wellbeing Explorer is currently being deployed in Scotland, Smart Data Foundry plans to expand this initiative to the rest of Great Britain in the near future. This expansion will allow for the addition of more indicators and offer users the possibility to explore data with increased granularity. The goal is to create a comprehensive platform that can serve as a reference for economic analysis and wellbeing on a national scale.
This extension could also address aspects such as financing for fintech startups, a growing sector that often faces challenges regarding preparedness and data security. To learn more about the obstacles faced by fintech startups in obtaining funding, check out this article Fintech Connect Report.
How Smart Data Foundry contributes to the data-for-good movement
Smart Data Foundry is part of the data-for-good movement, using data to solve major societal issues such as poverty and inequality. By providing insights based on robust financial data, the foundation enables public and private actors to make informed decisions and develop effective strategies to improve the economic wellbeing of citizens.
This approach aligns with current trends in the fintech sector, where socially responsible investment (SRI) plays an increasingly important role. To gain a deeper understanding of SRI and its impact on investments, check out this article Understanding Socially Responsible Investment (SRI).
The challenges and opportunities for the future of fintech in Scotland
The fintech landscape in Scotland, like elsewhere, is constantly evolving. Concerns regarding data security sometimes hinder the growth of financial services companies, as highlighted in this article here. However, with initiatives like the Economic Wellbeing Explorer, Smart Data Foundry plays a key role in creating a secure and conducive environment for innovation.
Moreover, the lack of regulatory preparedness remains a barrier for some fintechs, as indicated in this article Fintech Regulation Group. Smart Data Foundry, by closely collaborating with authorities and financial partners, contributes to bridging these gaps and promoting sustainable growth in the sector.
Furthermore, the Fintech Connect report highlights that despite the obstacles to capital procurement, a majority of fintech startups remain in search of funding. The Economic Wellbeing Explorer could potentially attract investors by demonstrating the tangible impact of financial data on improving economic wellbeing, thereby strengthening confidence in the fintech sector.
Innovation prospects with Smart Data Foundry
With a forward-looking vision, Smart Data Foundry plans to enrich the Economic Wellbeing Explorer with new indicators and enhanced analytical features. This evolution will provide even more precise answers to the needs of users, whether they are public decision-makers, researchers, or journalists. By integrating advanced technologies such as artificial intelligence and machine learning, the platform could offer more accurate predictions and personalized recommendations to improve economic resilience.
Continuous innovation is also essential to adapt to the rapid changes in the financial sector. By closely monitoring trends and adjusting its tools accordingly, Smart Data Foundry remains at the forefront of digital transformation in economic analysis and financial wellbeing.
The importance of financial data in the fight against poverty
Financial data plays a crucial role in understanding and combating poverty. By identifying spending trends, consumption habits, and sources of income, the Economic Wellbeing Explorer provides valuable insights for developing effective policies. As Dougie Robb, CEO of Smart Data Foundry, explains, “Data is not just information – it is extremely valuable for creating meaningful change.”
Through detailed analysis of banking data, it becomes possible to precisely target the areas most affected by precarity and implement appropriate measures to address them. This not only provides immediate support but also helps develop long-term strategies to strengthen the economic resilience of vulnerable populations.
The next steps for Smart Data Foundry
As Smart Data Foundry continues to develop, the focus will be on expanding the Economic Wellbeing Explorer to other regions of the UK. This expansion aims to offer even more detailed analysis and to include a broader range of economic and social indicators. In collaboration with academic institutions and financial sector partners, Smart Data Foundry strives to create a platform that is globally applicable and highly relevant.
Additionally, the integration of new technologies and the continuous improvement of analytical methods will ensure the platform remains at the forefront of innovation. By facilitating access to quality data and promoting a data-driven approach, Smart Data Foundry is actively contributing to the improvement of economic wellbeing and the reduction of inequalities in Scotland and beyond.
#>
