Castlight Financial, the Glasgow-based financial capability company, Big Issue Invest (BII) and Advice Direct Scotland (ADS) have launched a tool that will empower people struggling with debt by providing them with access to their own data.
The pilot scheme, which will run out of the ADS Glasgow office, will give people with debt concerns access to a version of Castlight Financial’s highly sophisticated affordability tool.
The fintech tool, named “The Big View”, uses cutting-edge open banking technology to allow users to get an in-depth, 360-degree view of their finances. For clients of ADS who choose to ask for debt and budgeting support, advisers will now be able to offer them access to this affordability tool. If the clients wish, advisers can work with them to review The Big View’s big picture of their finances, interpret the findings and develop solutions.
The technology works via the implementation of an FCA-regulated AISP platform which allows an individual to share their transactional data. Castlight Financial will then be able to categorise the transactions into over 150 categories of income, debt, discretionary and non-discretionary spending. The transactional data is then automatically merged with credit performance data to create a comprehensive report on the extent of the debt issues, precisely how they have arisen and what and when the client can afford to pay the debt back.
The Big View can track back through historical transactional data, and allows an individual to demonstrate changed behaviour. For example, a client may have defaulted on their rent for two consecutive months in the previous year, but the process will show that they have caught up and paid on time and in full ever since. If debt is an ongoing problem for a client, the tool will also be able to identify patterns of complex financial behaviour which need to be addressed.
The Big View report is compiled exclusively for the use of the ADS client and no data is stored, shared or used by any of the parties involved.