By Gareth Richardson, CEO, Finova
For too many people, meaningful access to financial services still feels out of reach. FCA data shows that close to one million people in the UK remain unbanked, and even among those who do have accounts, products are not always affordable, accessible or aligned to how they actually manage their money.
The UK government has acknowledged this challenge through its latest financial inclusion strategy, which places digital inclusion front and centre. As essential services increasingly move online – from bill payments to credit applications – digital access and financial access have become inseparable. Yet progress in digital banking has not automatically translated into inclusion. Many consumers continue to be priced out, overlooked, or forced to navigate products that were never designed with them in mind.
This raises an important question: in an era of real-time payments and AI-powered apps, why do so many people still struggle to access basic financial products? The answer lies less in ambition and more in outdated models. With the right technology, these rigid approaches can be replaced by services that flex around customers rather than excluding them.
Why traditional pricing still leaves people behind
At the heart of the problem is legacy thinking. Many pricing structures are rooted in how banks historically organised themselves – by product, department and balance sheet – rather than by customer need. Decisions are driven by siloed data, static risk models and narrow definitions of affordability.
The result is an incomplete view of the customer. Instead of recognising individuals as people with complex and evolving financial lives, systems often reduce them to snapshots: a single income figure, a credit score, or a moment in time.
Modern technology offers a way out of this constraint. Cloud-native core platforms, open banking and advanced decisioning tools allow lenders to assess customers more holistically. Income patterns, spending behaviour, savings habits and longer-term trends can all be factored into fairer outcomes.
Take seasonal workers as an example. Under traditional assessments, income volatility during quieter months can count against them. A more sophisticated approach can look across an entire year, recognising stability over time rather than penalising short-term fluctuations.
There is also growing potential in products that respond dynamically to behaviour. Rates and terms could evolve based on day-to-day financial decisions, allowing people with limited credit history to build trust gradually and improve access as their circumstances change.
Building fairer pricing through better data
Many pricing decisions today are still made using a narrow slice of data, often limited to what one institution or product line can see. But most people manage their finances across multiple providers. They save in one place, borrow in another and budget elsewhere entirely.
Smarter pricing models can bring these fragmented views together. Open banking data, behavioural insights and emerging digital identity frameworks enable lenders to build a richer and more accurate picture of a customer’s financial life.
Looking ahead, digital identity and federated data models could give individuals far greater control. Securely sharing verified data across providers means financial history doesn’t disappear every time someone switches bank. Instead of starting from scratch, customers carry continuity with them – shifting the balance away from exclusion and towards empowerment.
Why speed matters for inclusion
Inclusion isn’t only about fairness; it’s also about responsiveness. When product development cycles stretch over months or years, lenders struggle to adapt to changing customer needs – particularly for those in vulnerable or non-standard circumstances.
Cloud technology changes this dynamic. New propositions can be launched faster, tested in real-world settings and refined based on feedback. Static, one-size-fits-all products can give way to offerings that evolve over time, rewarding positive behaviour and supporting customers as their situations change.
Technologies shaping a more inclusive future
A range of emerging technologies will play a role in making financial services more accessible. While industry initiatives have made progress on financial education, products themselves often remain complex and intimidating.
AI has the potential to help here. Intelligent assistants can guide customers through decisions in plain language, helping first-time borrowers or savers compare options without feeling overwhelmed.
Digital identity and data portability are equally important. For people with irregular incomes, limited credit history or who are new to the UK, being able to carry verified financial information securely can remove significant barriers to entry.
Underpinning all of this are modern core banking architectures. By moving away from rigid, predefined products, lenders can design services that reflect real life – from flexible repayment plans to savings tools that adapt to behaviour.
Towards a system that works for everyone
Technology alone won’t solve financial inclusion, but it is a powerful enabler. Used responsibly, it can help create services that are easier to access, easier to understand and better aligned with how people actually live.
The opportunity is clear: build a financial system that adapts to individuals, not the other way around. One where outdated systems and incomplete data no longer determine who is included and who is left behind. With the right choices, technology – and AI in particular – can be a genuine force for good in closing the inclusion gap.
