The next Fintech frontier for the growing newly financially fragile class

Source
  • #AndTheIronyIs — Over the past six years, the % of the UK population that is underserved has grown and this growth is expected to continue and even to accelerate.
  • The pandemic has had a lasting effect in the economy. In the UK, 1 in 5 people joined the group of people with variable income which often means they can’t withstand an unexpected expense and are `Financially Fragile`.
  • The study claims that a £300 unplanned expense, would force 16m people to have to borrow!
  • The rising cost of living has not only forced people to adjust their budgets but has led 1 in 12 UK adults to use BNPL for basic costs in the last 6 months (as the COVID19 subsidies are terminated)
  • #AndTheIronyIs — Over the past six years, the number of UK residents with no credit history has grown 29%!
  • 11m UK residents have no credit card and don’t plan to get one.
  • #AndTheIronyIs — Rent payments are still not included in credit reports like mortgage payments, while we know `Generation Rent` is booming.
  • Gig workers and self-employed are increasing and a much larger % of these groups (58%) are financially fragile and thus underserved (compared to 37% of the overall population).
  • Financial Fragility has to be re-evaluated because it has become more complex due to the changes in job markets, monetary policies, and geopolitics.
  • Has the Financially Fragile population in the developed countries, doubled in the last 3yrs?
  • Can Fintech solutions serve this sudden spike in this uncertain macro-economic environment, or will it have to look after its own survival much like Banks had to after the 2008 crisis?

--

--

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
Efi Pylarinou

Efi Pylarinou

№1 #Finance Global Woman Influencer by Refinitiv 2020 & 2019. Top Global #Fintech Influencer, Futurist, #AI, #Blockchain +: 30yrs FINANCE — https://linktr.ee/Ef