Affordable Credit Challenge
The Affordable Credit Challenge supports partnerships between UK community lenders and fintechs developing innovative technological solutions that will increase access to affordable, responsible credit. The Challenge is backed by HM Treasury and delivered by Nesta Challenges.
Most of us rely on borrowing of one form or another, whether loans, credit card debt or mortgages. But the inability to access fair and affordable credit is a challenge faced by millions of people across the UK. For instance, over 8 million people use credit to pay for everyday household expenses.
Credit unions, CDFIs and other community lenders offer an affordable alternative to high cost credit, such as payday loans. They comprise a significant market, making over £1 billion worth of loans annually and serving almost 2 million people. However, they compete with high cost credit providers with more resources and better access to technology. This means they can struggle to reach and serve all those who could benefit from their services.
Meanwhile, the UK’s world class fintech sector continues to flourish, challenging traditional business models in banking, payments, personal investing and small business lending to better serve customers.
We believe a better personal lending market is possible – with affordable credit available to more of those who need it – through combining the values and reach of the community lending sector with the insights and capabilities of fintech businesses.