Hope Macy Leverages Funding to Tackle Financial Vulnerability Issues

Last Updated on: 11th December 2023, 06:00 pm

FCA-authorised UK Fintech company, Hope Macy, has recently raised £1.5m in seed capital from the Development Bank of Wales and an angel investor network. This investment is earmarked for enhancing and broadening the reach of its Open Banking and AI platform in the UK, aiming to mitigate the growing problem of financial vulnerability.

A worrying trend has emerged where more consumers are accumulating debt, facing barriers to credit access, and falling prey to fraud. FairForAll Finance reports that a staggering 17.5 million UK consumers find themselves in financially vulnerable positions, with some nearing a point of no return. According to the National Crime Agency, fraud disproportionately targets vulnerable individuals, often leading to significant financial and psychological harm. Financial vulnerability can manifest in various ways, including missed payments, rent defaults, and loan delinquencies, leading to issues like debt, impaired credit, and homelessness.

Situated in Tramshed, Newport, Hope Macy has innovated a comprehensive technology platform with three pivotal products: DataFlex, an open finance technology tool that analyses a consumer’s financial data to identify vulnerabilities; Affordwise, a credit reference service providing financial analysis reports to help consumers access affordable credit, manage debts, or find additional income; and Family Connect, an automated assistant designed to flag financial risks and alert family members if concerns arise.

This platform is already in use by numerous lending and debt management firms across the UK. For example, Adage Credit uses it to assess the creditworthiness of low-income individuals lacking a credit history, solely based on their bank account details. This allows for quick and efficient credit risk evaluation, expanding credit access while simultaneously mitigating risk.

In the rapidly evolving international subprime market, Hope Macy is well-positioned to significantly improve consumer well-being.

Sam Manning, CEO of Hope Macy, remarked: “We understand the financially vulnerable like no one else. We have engaged with regulators, lenders, and borrowers to create a platform that meets the needs of this under-served eco-system. Using our technology, we are proud of what we have delivered and how consumers are benefiting from it.”

Jack Christopher, Investment Executive at the Development Bank of Wales, said: “We’re thrilled to be a part of Hope Macy’s journey with our investment – Sam and Graham will continue to innovate within the consumer credit space to produce solutions that will tangibly help those who are in most need gain access to credit fairly and affordably.

“We’re here not just to get finance to businesses, but also to help innovators who create products that are going to make a positive impact in people’s lives not just here in Wales, but across the United Kingdom. The new platform developed will be of genuine benefit to financial institutions that need to comply with the FCA’s newly-introduced Consumer Duty regulations. We look forward to seeing their new platform go from strength to strength.”

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