Reimagining how government and financial services approach inclusion

GovTech start-up Vouchsafe has announced a partnership with Equifax, a leading credit reference agency, and Moneyline, a lender serving the financially underserved.

This collaboration is focused on developing next-generation Know Your Customer (KYC) technology to address financial exclusion, a pressing issue impacting millions in the UK and beyond.

Vouchsafe's co-founders have a deep appreciation of financial inclusion and public sector innovation - Chloe Coleman led user research for Universal Credit, pioneering efforts to provide basic bank accounts to individuals experiencing homelessness, and Jaye Hackett, played a key role in designing the NHS coronavirus contact tracing app during the early days of the pandemic.

The partnership is part of FinTech Scotland’s Consumer Duty Innovation Challenge, which brings together prominent organisations like NatWest, Barclays, and Lloyds Banking Group. This programme aims to explore innovative solutions to regulatory and social challenges in the financial sector, culminating in a demonstration day in Glasgow this January.

The significance of this partnership lies in its potential to reimagine how government and financial services approach inclusion and digital innovation.

Traditional KYC methods, which often rely on manual or in-person processes, create barriers for underserved populations. With over 11 million people in the UK lacking adequate photo ID and 20 million classified as financially underserved, current systems exclude large segments of the population.

Chloe Coleman, CEO of Vouchsafe, emphasises the broader implications:
"Vouchsafe was built to solve real barriers to financial access, not just for today’s underserved communities but for those impacted by emerging challenges. The Consumer Duty Challenge is an ideal launchpad to reimagine financial inclusion."

Vouchsafe’s partnership with Equifax and Moneyline leverages each organisation’s unique expertise:

• Equifax, as a data-led business, is bringing real-time insights to develop smarter, more personalised solutions.

• Moneyline, with its focus on lending to underserved populations, underscores the importance of inclusive automation.

"Automation shouldn’t mean more people excluded. We just need to get better at how we automate and develop Tech for Good," said Rachel Magowan, CTO of Moneyline.

The collaboration is driven by Vouchsafe’s innovative technology, which fully automates KYC decisions using explainable AI.

Unlike traditional methods that often fail 20-40 per cent of applicants and require costly manual intervention, Vouchsafe supports a wide range of verification evidence, including trusted referees, to fill documentation gaps.

The need for innovation is heightened by the ongoing cost-of-living crisis, which exacerbates existing inequalities. With more consumers turning to buy-now-pay-later services that bypass mainstream credit bureaus and fewer people renewing passports or driving licenses, access to photo ID - a critical element of KYC - has become increasingly limited.

Vouchsafe’s approach addresses these challenges by focusing on flexible, inclusive solutions. This mission aligns closely with the Scottish Government, Vouchsafe’s first major customer, and reflects the company's commitment to tech-for-good principles.

With support from Bethnal Green Ventures and Big Issue Invest, Vouchsafe is looking to expand its impact. The collaboration with Equifax and Moneyline marks a further step in transforming how identity verification is approached, making financial services more accessible for millions.

This partnership highlights the importance of leveraging cutting-edge technology to drive both regulatory compliance and social benefits. It’s a reminder that innovative solutions, when applied strategically, can unlock significant value for underserved communities while advancing public sector priorities.

Vouchsafe were one of the start-ups supported in Innovation Alley, the CivTech and GovTech zone of Government Transformation Expo.