AI in Fintech

FinTech Scotland

National Outcome: We have a globally competitive, entrepreneurial, inclusive and sustainable economy

The use of AI in finance technology (FinTech) across Scotland is helping people to manage their money. It generates insights and analysis that bring issues, options and opportunities into sharper focus and in doing so improve customer experiences and reduce risk in financial services.

AI combined with Open Banking is a powerful enabler and companies are using it to improve financial inclusion. Open Banking has created a regulated framework that allows a third party consented access to an individual’s current account information and provide a wide range of services to help people maximise their income and better understand their spending behaviour. Crucially, it provides affordable lending to people who have previously been excluded from mainstream credit options.

AI in FinTech is generating the insights and intelligence needed to develop trusted new solutions and companies in Scotland are playing a part. In the lending market, DirectID is applying AI and Open Banking to determine if an individual can afford a loan and calculate the likelihood that they will default on the repayments. This helps the lender assess its potential risk and opens the door to new lending options for people with little or no credit history who may have resorted to higher interest loan providers in the past.

Understanding spending behaviour is also becoming easier through the use of AI. For example, Money Dashboard categorises transactional information and tells users what they’re spending each month and how this compares to others in their peer group.

InBest.ai encourages people to maximise their income by helping them understand the benefits and grants that are available. This application addresses the fact that many people don’t claim the benefits they may be entitled to and instead resort to credit and debt to supplement their income. many people don’t claim the benefits they may be entitled to and instead resort to credit and debt to supplement their income.