Nationwide has launched a £3m fund to encourage FinTech startups and academics to develop Open Banking apps.
Nationwide Building Society’s Open Banking for Good challenge (OB4G) was announce back in July. The Government-sponsored challenge will pair established FinTechs and start-ups with debt and money charities in a bid to develop apps that help drive financial inclusion.
OB4G launches with a £3m fund from Nationwide to drive the programme and encourage participation. It is supported by the likes of Nationwide, Money Advice Trust, Accenture, Nesta and Doteveryone – the charity and independent think tank focussed on responsible technology.
As part of the Inclusive Economy Partnership – a collaboration between business, civil society and government and facilitated by Nesta, OB4G aims to bring organisations together to create scalable solutions to widespread financial capability issues using the functionality of Open Banking.
Joe Garner, Nationwide’s chief executive, says: “We believe Open Banking presents a huge opportunity to help everybody with their money – not just the affluent or technically literate. We’re looking for innovators to come forward with ideas to help people living on a financial knife edge – with little by way of savings or relying heavily on credit. If entrepreneurs, innovators, charities and financial services work together, we could make a huge positive impact – and that’s what this is all about.“
Open Banking, which launched in January 2018, was introduced to increase competition in the financial services sector, leading to better outcomes for consumers by allowing third parties to offer a myriad of services on behalf of established banks and building societies.
Motivated by Nationwide’s social purpose, the OB4G programme places a premium on innovators being challenged to use Open Banking for social good, as well as financial good, and for the benefit of everyday people, not just Nationwide members. Nationwide is mow inviting FinTechs and academics to apply for the OB4G challenge.
Oliver Dowden, Minister for Implementation, added: “The Open Banking for Good Challenge is a welcome addition to the wide range of projects emerging from the Inclusive Economy Partnership, which sits at the heart of government’s promise to create a stronger economy and a fairer society.
“The challenge is an excellent example of how the Partnership can help some of the millions of UK households who have no savings or rely heavily on credit. I look forward to seeing how we can continue to work with smaller organisations and smart tech solutions to harness the power of big ideas, for the benefit of everyone.”
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