How the North East’s fintech boom is helping the cost of living crisis Prolific North

Dunn at Invest Newcastle highlighted growing interest from organized angel investment groups such as Fund Her North and NorthInvest, as well as private investors and the British Business Bank.

“That combination of technical strength and some strength in the financial sector is what you need to grow fintech capability,” Wells said.

The collaborative approach and partnerships between Invest Newcastle, Sunderland Software City, Digital Catapult, the NewcastleGateshead initiative and Dynamo North East are central to stimulating the growth of the developing technology sectors in the region.

“It’s important to become part of the wider northern ecosystem – it gives us the opportunity to tap into the talent and supply chains of neighboring regions and means they can benefit from our network,” Dunn said.

“We continue to be a cheerleader for all the digital and technological growth in the North of Tyne Combined Authority area, and fintech is a very important part of that growth. We help individuals and organizations get the information they need to succeed in grow or establish a business here, and can act as a ‘front door’ for information on office space, funding and access to talent.”

Tackling the cost of living crisis

It is no surprise that the cost of living crisis is a high priority for some of the fintechs in the region. Inflation has hit a 40-year high of 9.4%, according to the Office for National Statistics (ONS), as the cost of living continues to rise. Strong new research carried out for the End Child Poverty Coalition by Loughborough University discovered child poverty increased by 38% in the North East.

In Atom Bank, the company works to provide clear information and signage in its app to ensure that customers can register any concerns about financial problems.

“If you’re lying there thinking I’m not going to be able to pay my mortgage, I’m going to lose my home, me and the kids are going to be out on the street, that just starts spinning in your head,” Framrose said in Atom Bank.

On the lending side, Atom has a set of “warning signals” and proactively engages with customers with solutions that provide a “real sense of relief” if they are navigating financial pressures.

“We encourage customers to be as honest as they can about their circumstances because that’s the way we can best help them,” she said.

“All they really want is for us to reassure them and help them understand that if it gets worse, get in touch because it’s easier for us to help you from the start and to put measures in place.”

At Cascade Cash Management and GB Bank, Dr Emma Black said a “greater purpose helps us get out of bed every morning” by “serving the underserved”.