#GetToYes: Driving a Revolution in Affordable Credit

At incuto, we’re passionate about making finance accessible for everyone. Our mission is to drive down the cost of lending and drive up the capacity, customer experience and reach of the lenders we work with. 

• Right now, according to research by PwC, 1 in 3 adults may have difficulty accessing credit from mainstream lenders. That’s 20.2m UK adults who are defined as financially underserved. 

• According to research by the Money and Pensions Service, more than 9m adults were declined for credit in just 12 months (between April 2022 and April 2023).

• Equally, according to numbers published by the Illegal Money Lending Team in England, between 2013 and 2023 the rate in which illegal money lending rose was 10x greater than the rise in membership of Credit Unions.

If we were to assume that every member of a UK Credit Union today was financially underserved (which is very much not the case), the best-case scenario is that they currently serve around 10% of this group. The reality is that it’s far less.

Addressing this challenge needs a revolution in the affordable credit sector.  We need to reduce the number of people getting declined and help more people #GetToYes

The Challenge

Credit Unions have been one of the UK’s best kept financial secrets for decades. Although these member-owned cooperatives serve people from all walks of life, it still seems that millions of UK residents are unaware of their services… or the fact that they even exist.

However, there’s probably a good reason why they’ve never heard of a Credit Union – they’ve never needed one before! For many, financial exclusion is new, driven by a rapid and seismic change in risk-appetite from their usual bank or lender. Lending policies have changed, so this may be the first time that people who have borrowed in the past have been declined for credit. 

In an attempt to be more efficient and provide a better customer experience, many banks and mainstream lenders continue to invest heavily in technology. Somewhat ironically, this has led to an increase in the total cost of lending, changing the risk-appetite of the lenders, driving up the minimum loan size and leading to a quicker “no” decision for the applicant.

This leaves countless individuals and families without the financial support they need…

Our Solution

We believe in the power of saying "yes." We work closely with credit unions and community lenders, sharing a common goal of providing affordable and ethical financial solutions. Through our collaborations, we aim to improve the chances of approval for those who need it most.  

The campaign…

• Ensure that the Credit Unions and Community Lenders can meet the demands of this growing number of underserved customers. 

• Driving down the cost to serve and improving efficiency without compromising on being ethical, purpose driven and sustainable.

• Ensure that the underserved customers find these lenders and find the right products and services at the right price, and crucially #GetToYes!

A Future Where Everyone Gets Access To The Financial Support They Need

Our ultimate goal is to ensure that no one is left out of the financial system

The #GetToYes campaign is about more than just financial support; it's about fostering a community of care, understanding, and opportunity.

Everything you need to know about the upcoming COP deadline

If you make payments using a high-street bank app or online, you’ll probably have noticed that you’ve been asked to confirm the name of the person you’re paying money to.

This is to allow you to check that the account details you have entered definitely belong to the right person. This service is called Confirmation of Payee (CoP), and has been rolled out by all the major banks over the past few years.

Now, all organisations who originate payments are expected to implement CoP before  the 31st October 2024.

How does CoP apply to Credit Unions?

Outbound payments - withdrawals from share accounts:

• Members will be asked to confirm the name of the external payee they are sending payments to

• This functionality will be added to Members Area / Mobile App over the coming months - you don’t need to do anything and we’ll provide a full timeline soon

• This check confirms that the payer knows the name of the person they are paying, and that the account they are paying to belongs to that person

• If they get the name correct (or very close), they will receive confirmation on-screen

• If they get the name wrong, they will receive an alert to say that the account details can’t be matched, followed by a warning about scam payments

By asking members to confirm that they wish to proceed, even if the account details are different, they will be accepting liability that the payment may be being made to the wrong account.

We will add functionality, post-October 31st, to give you the option to block payments where the details don’t match.

Inbound payments - payments to repay loans:

• Accounts used solely to accept incoming loan repayments are exempt from CoP

Inbound payments - payments into share accounts:

• People paying a member of your Credit Union will have to provide the details of the Credit Union, not the member, otherwise the details won’t match

• Your existing bank will already provide this service, so there is no action to be taken to support this

Virtual Accounts:

• We are introducing “Virtual Accounts” (through ClearBank) which will allow you to provide an account number and sort-code to each member, in their own name

• Incoming payments can be automatically matched with existing member numbers, enabling realtime, automated reconciliation

For more information about CoP / Virtual Accounts please contact your Account Manager or email hello@incuto.com

This is a race that matters…

Being first to market doesn’t guarantee success. 

Actually, very often the companies who are first to market find themselves outpaced by more nimble start-ups who can innovate more quickly without the challenge of having any live customers to serve.  It’s also true that many companies are actually just delivering an iteration on something which has already been created - not new, just better.

When we set up incuto, we were definitely going to be first to market with something.  Whilst it may be an iteration on something which already existed in other sectors, we wanted our platform to be affordable, accessible and way, way better, built for a sector who needed it more than most.

But we also knew that this was going to be different.  It wasn’t about registering trademarks or trying to unseat some incumbents.  This mattered.

It mattered because the tools we were building were going to help drive change.

We were going to serve a group of largely ignored and underserved, not-for-profit lenders, who in turn were trying to help a group of largely ignored and financially underserved customers.

So being first here wasn’t a race against a competitor.  It was a race against a wicked and pervasive problem that was so big that it costs lives, not just money.

So here’s what we did:

• We were the first company to disrupt and democratise the way tech was delivered to the lenders, by offering transaction-based pricing and scrapping license and support fees.

• We were the first company to agree ground-breaking commercial contracts with key suppliers (including TransUnion, Clear Bank & Mastercard), leveraging the buying power of the sector, then pass on the significant savings.

• We were the first company to connect primary schools with Credit Unions in the LifeSavers project, sponsored by the Archbishop of Canterbury.

• We were the first company to launch a Prize Linked Savings product (Prize Savers) spanning multiple Credit Unions, backed by HM Treasury.

• We were the first company to enable our customers to offer withdrawals via real-time Faster Payments.

• We were the first company to take a regulated position to ensure that real-time payments were available to every lender, no matter how small.

• We were the first company to take a regulated position so that the lenders could collect repayments by Direct Debit, sponsored by us. 

• We were the first company to put a not-for-profit community lender into a mainstream price comparison website, with no upfront costs, ensuring they are always an option when people are searching for the right product.

• We were the first company to appoint a Head of Advocacy, whose job is to tell the story of the sector, and the amazing work it does in driving financial inclusion and wellbeing.

And we’re going to continue to be first to market with a whole range of new things to support our customers.  In 2024 alone,

• we’re going to be offering virtual accounts, allowing end customers to have a “proper” account number, alongside their member number;

• we’re going to be offering real-time reconciliation of inbound payments, meaning that money will be available to end-customers within seconds, not days;

• we’re going to be connecting more and more Credit Unions and CDFIs into mainstream Price Comparison websites;

• we’re going to be taking declined borrowers from mainstream lenders, and ensuring they get access to fair, affordable alternative lenders;

• and we’re going to be offering a new way for our lenders to compete with challenges such as Buy Now, Pay Later.

And yes, there are some cool start-ups who will come along, go faster, be better.  So, we’ll do all we can to help them succeed too, because the more people trying to help our sector, the better it will become.  We didn’t come here to be alone.  We’re partnering with some great companies, including Credit Canary and GoodWith to name just two.

When we started this company, we knew it mattered.  And it still matters today, more than ever.  Right now, 20m people would be refused credit if they applied to a mainstream lender.  Many mainstream lenders have invested in technology to say no more quickly, driving up the rate of exclusion.

We’re helping our not-for-profit lenders #GetToYes for more people.

We’re doing that by driving down the cost of lending and driving up the capacity and capability of the lenders we work with.

The lenders we worked with first were pathfinders.  We’re so grateful to them for their support and trust.  The great news is that many are now more successful and sustainable than ever.

You don’t have to be first.  Just don’t get left behind.

Follow our path to success now and help your existing members and prospective customers #GetToYes!

A reflection on 2023, and insights into what 2024 has in store for incuto…

As we stand at the threshold of a new year, it's the perfect time to pause, reflect, and share our vision for the rest of the year. 2023 has been a remarkable chapter in our collective story, filled with challenges, growth, and moments that have shaped and propelled us. Now, as we step into the rest of 2024, we can't help but feel a surge of excitement for what's to come!

Reflecting on 2023: A Year of Resilience and Growth

As we look back on 2023, we celebrate a year of significant achievements and growth together:

Quarterly CEO Updates: Our commitment to transparency and engagement was evident in our informative quarterly CEO updates, fostering a stronger connection with our credit union community.

InBest Integration: The integration of InBest elevated our offering to credit unions, providing members with a seamless and enhanced experience in managing their finances.

Continuous Growth:  More people than ever are using our platforms, exceeding expectations reflecting the trust and confidence our community has placed in us. Our pipeline of new customers indicates this will continue.

November Conference: The conference brought together industry experts, thought leaders and our community to foster insightful discussions and shape the future of community finance.  As a result of the conference we will be publishing our Vision 2030 report in Q2 of 2024 which will include a strategic roadmap for the sector, combining views from Credit Unions, key suppliers and stakeholders, as well as technology partners who all share a common ambition to see the sector grow and thrive.

Improved ESG Score: Our dedication to ESG principles was underscored by a significantly improved ESG score, emphasising our commitment to sustainability.

ClearBank Partnership: Our unique partnership with ClearBank marked a milestone, breaking new ground in redefining the financial landscape through collaborative innovation.

TransUnion Partnership: Our relationship has continued to expand, including two exciting new 3-way partnerships between incuto, TransUnion, alongside both Bud and Monevo.  Our collaboration with these three major providers, gives Credit Unions a competitive advantage by being the first of their kind working collaboratively for the sector.

Navigating the Future Through Strategic Partnerships

We’re excited to announce that incuto is not only open for business but is also more committed than ever to empowering organisations with progressive financial solutions here in the UK. In a world that is rapidly evolving, our dedication to providing seamless, secure, and innovative financial services remains unwavering.

This year, we’re striving to provide more opportunities to connect to additional complementary partners, to provide even more goodness to our customers in the mutual sector. Despite a rocky landscape with difficult obstacles to overcome, we’re tackling the challenge head-on, and building a platform with and for the sector. As technology continues to reshape the financial industry, we recognise the importance of joining forces with like-minded organisations to create an ecosystem that benefits our credit union and community, not for profit lenders.

Join Us on this Exciting Journey

Over the course of the next 12 months we’ll be producing and sharing a series of thought leadership sessions. These sessions will be run by our CEO, Andrew Rabbitt, and will feature a range of professionals from the fintech and mutual sectors. 

We’ll be exploring a selection of topics, including onboarding clients to the incuto platform and marketplace, connecting to new partners and bringing new products to market.

Whether you're an existing partner, or considering incuto for the first time, rest assured that our dedication to delivering top-notch financial services remains steadfast.  We are more than a “tech” company, and as a trusted partner, we aim to guide our customers to help them make the right business decisions. Together, let's embrace the future of finance and unlock new possibilities!

Impact & Innovation in the Community Finance Sector - an overview of our 2023 conference

At the start of November, we hosted our annual conference, bringing together innovators, thought leaders, and change-makers in the community finance sector. Our "Impact and Innovation" conference proved to be a resounding success, showcasing the latest advancements in financial technology and emphasising the transformative power of community-focused financial solutions.

Highlights from the event included:

Collaboration/Innovation

The conference encouraged powerful discussions on the innovative efforts driving empowerment and positive change in the community finance sector. Collaborations with credit unions, community banks, fintechs and other relevant organisations were highlighted as key drivers of positive change, in a sector known as the UK’s ‘best kept secret’.

Attendees were treated to hearing elevator pitches supporting the ongoing message of incorporating ‘Fintech for Good’. Fintech North joined us on the day, showcasing seven pioneering FinTech organisations from across the North, who shared their innovative propositions and solutions, from real-time credit reference fintechs to apps dedicated to growing money confidence for young people. 

““The shared messages in the room today reflected the mission of all concerned to support and uplift the financial well-being of the people and communities they serve.“ ”

— Juli Thompson, Food Savers & Inn Churches

Credit Union Sector

With a room full of some of the UK's leading credit unions, we took the opportunity to recognise and discuss the future of the sector. Impactful keynote speakers took the stage, sharing insights on the evolving landscape of community finance. 

Topics ranged from the role of technology in fostering financial inclusion to the ethical considerations surrounding the implementation of fintech solutions. These thought-provoking discussions inspired attendees to think critically about the impact of their work in the broader context of community development.

On day two, we split our attendees into six groups and ran three thought-provoking workshops,  to stimulate debate and conversations around payments in a modern world, lending in a digital society, and marketing credit unions to wider audiences. A great networking opportunity, to share ideas with thought leaders and like-minded individuals. 

Our sponsors

This year we were overwhelmed with support, and were delighted to be sponsored by a handful of successful and widely-recognised organisations. Again, we would like to thank Mastercard, TransUnion, Clear Bank, Monevo, and Bud Financial, for not only sponsoring our conference, but for recognising the importance of the community finance sector. 

Vision  2030

Undoubtedly, the main aim of the two day event was to get sector leaders to consider and envision the future of credit unions and community banking. At incuto, we’re on a mission to empower credit unions to help more people, from now until 2030 and beyond.

““The need for collaboration in Financial Services has never been greater.  We all have a part to play in making sure affordable credit is available to those who need it most.  The incuto team are proud to be at forefront of this endeavour.””

— incuto Head of Advocacy, Lauren Langton

Our impact and innovation conference in Leeds was a testament to the company's dedication to advancing community finance through technology, and was quoted as "the Friendliest Conference I have ever been to" by Martin Prigent from Aryza.

The event not only showcased the latest fintech tools but also provided a platform for collaboration, learning, and celebration within the sector. As we continue to lead the way in community-focused financial solutions, the conference has set the stage for further discussions and debates about the future. 

Incuto announces 2023 Conference

We’re excited to announce our 2023 Conference Theme: ‘Impact & Innovation in the Community Finance Sector’

Building on last year’s conference theme of resilience and sustainability, our 2023 event is all about the next stage  – sector growth, new and exciting products and services, the art of the possible.

We’re inviting all UK Credit Unions to come together and collaborate, to inspire an ambitious roadmap for the future.

To find out more and sign up, head to our event page here: https://www.incuto.com/2023-event

Looking forward to 2023 and beyond

As we at incuto head into our 7th year, we’re more energised and focused than ever on making a positive impact with our customers and partners. Forget “funky fintechs” - as a team, we can’t think of a more fulfilling way to spend our time.

To give some sense of the collective impact we’re having on the world, we wanted to share some numbers which really matter to the incuto team.

Up to the end of December 2022, through the incuto platform there have been:

• 25.1m unique logins to use online members area / online banking services

• 469k loan applications processed totalling over £900m

• 600k Credit Bureau and Open Banking checks run to support faster loan decisioning

• 2.2m faster payments totalling £366m (with 54% of them out of office hours)

2023 will obviously bring some challenges, but let’s face it, you’ve been dealing with this “crisis” for decades – the idea of people choosing between heating and eating isn’t new to our sector, so now, more than ever, the focus must turn to how sustainable and resilient this sector is and how quickly you can scale to help even more people.

During 2023, we’ll be working hard to ensure that the platform can sustain the next 7 years of growth, looking at how we stabilise our infrastructure and enable more lenders to use our core products (online services, loan origination & decisioning, faster payments and direct debits).

We recognise that over the past 6 years, we’ve become a critical part of the infrastructure for many of our customers and we want you to know that we take that very seriously.  The positive changes we’ve made to our business during 2022 have created an opportunity to build long-term success – something which we know is so important to you when you’re managing your operational risk.

We came to this sector on purpose, with a purpose.  We believe that everyone should have access to fair, affordable financial services, and like you, we’re in it for as long as it takes.

Andrew & John (co-founders)

Our efforts aren’t possible without you, so we’re immensely grateful to all our customers and partners for your support up to this point, and we look forward to continuing to build on those exciting numbers and helping you to help more people in your communities in 2023 and beyond!