In September 2022, the UK fintech industry launched a campaign to drive 10 million actions that will improve consumers’ financial resilience by 2025. The collective is called the 2025 Fintech Pledge.
Kalgera are beyond thrilled to be a part of the 2025 Fintech Pledge, an initiative, led by Zopa that is intent on setting the tone around the discourse for consumer’s financial resilience, and more importantly, improve a consumer’s financial life.
What is the aim?
Rising inflation and the subsequent price surges in everything from energy bills, petrol prices and grocery costs have exacerbated the squeeze on household finances, some of which were already under strain in the wake of the Covid-19 pandemic. Britons up and down the country are increasingly worried about the impact of this financial shock on their lives.
The financial technology industry has been built on the principle of driving positive change for customers and so we must act now.
The 2025 Fintech Pledge brings together the fintech industry and its strategic partners to help UK consumers build up their financial resilience and better protect against the rising cost of living.
The Plan
At an average of one action per person, 10 million actions represent 20% of the UK adult population taking a positive step towards better managing a financial shock.
The plan is to drive 10 million positive actions that improve consumers’ financial resilience by 2025. The collective will measure this through the number of actions consumers take each month that are proven to positively build their financial resilience.
This will stop the spread of the ‘knock on effect’ that financial distress can have on families, communities and more broadly society. When someone is unable to make a payment then it is likely that others will also suffer.
Two examples that showcase this:
A business owner owes a freelancer who has contractors working for them money, the business pays the freelancer late, the freelancer then has to find money to cover bills and to pay their contractors. If they do not have savings, or the ability to take out financing, then they are not the only one impacted. The knock on effect may not stop there either.
A second example, the breadwinner of the family loses their job, putting strain on the secondary earner of the household. With the base interest rate at 5% and rising mortgages, they are unable to keep up with the current trajectory of increases on standard bills, and become closer and closer to potentially losing their home or sacrificing heavily on necessary bills and expenditure.
Who is involved?
To-date, there are 37 signatories, including ClearScore, The Money Charity, tink, Plaid and Bud.
Why is Kalgera involved?
We have worked tirelessly for those who are financially underrepresented. We want to see financial inclusion in action, not just as a casual mention on social media and/or at events. We have seen firsthand what can happen to those who are financially vulnerable and we believe that those people deserve to get banking products that work for them and keep their unique needs in mind.
How can I get involved?
Anyone in the fintech industry can get involved. For more information you can email join@pledge2025.org to join the pledge, or to find out more about the initiative.
About 2025 Fintech Pledge
The 2025 Fintech Pledge (pledge2025.org) is a coalition of fintech firms and their industry partners that joined forces in September 2022 to tackle the UK’s cost of living crisis.
It wants to drive 10 million consumer actions by 2025 that build up the Financial Resilience of UK consumers, by connecting people to platforms that make savings work harder, improve credit scores, consolidate debt and lower utility bills.
You can email join@pledge2025.org to join the pledge, or to find out more about the initiative
About Kalgera
Kalgera, a London-based RegTech, is the first line of defence for financial institutions who want to actively support its most vulnerable customers. By helping the finance sector identify customer vulnerability through transactional data, Kalgera creates better outcomes for the customer and the financial institution itself.
We are committed to working with banks through several avenues to comply with the FCA's Consumer Duty Act. Kalgera’s state-of-the-art technology uses 11 parallel AI models to pinpoint vulnerability to financial abuse and low financial resilience with greater precision.
You can find our online training, in association with the London Institute of Banking and Finance (LIBF), here and more information over at our website.
