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LIVED EXPERIENCE IN FINANCIAL PRODUCT DESIGN

When I first moved to the UK, I faced financial vulnerability in a way I hadn’t anticipated. Despite coming from a solid financial background, I encountered the inverse problem—being unbanked for a prolonged period and having a significant amount of physical cash which triggered an anti-money laundering investigation due to one mainstream bank's suspicions. 

 

My experience is not unique and highlights the disproportionate scrutiny and systemic barriers faced by individuals, particularly those from underrepresented communities, even when they are financially stable. Barriers within traditional banking systems, such as limited access to affordable credit, high interest rates, and stringent lending requirements continue disproportionately affecting people of colour and underrepresented groups. 

According to the Money & Pensions Service, about 8.1 million adults in the UK needed debt advice in 2023, with a notable percentage of those affected being from ethnic minority groups, which typically face higher levels of financial vulnerability and exclusion. Around 31% of people needing debt advice come from ethnic minority communities, which make up less than 20% of the general population​. This highlights the disproportionate impact on these communities.

Additionally, ethnic minority households often face systemic challenges in accessing affordable financial services, leading to deeper debt and economic disparities​ according to the Office for National Statistics. This data evidence deep-rooted financial inequality in the system and underpins the importance of targeted financial inclusion efforts, particularly in addressing the barriers ethnic minority groups face in the UK.


These barriers, along with stringent restrictions and a "one size fits all" approach from mainstream financial institutions, often result in Poverty Premiums, forcing already underserved communities to pay more for financial products and services, especially credit. Making it even harder for them to escape oppressive cyclical debt and financial exclusion. 

My family and I experienced this firsthand when we arrived in the UK and sadly had to look outside the UK’s financial service framework to get ourselves back on track -how much worse for people who have no alternatives?

 

Moreover, this is compounded by a rhetorical vicious cycle where the children of those affected stand lower chances of getting good if any financial education, are most impacted by child poverty, and are likely to be lower achievers due to the scarcity of meaningful life skills training, little mentorship and low access to aspirational opportunities. 

 

In the UK, children from lower-income households are four times more likely to experience financial insecurity as adults, perpetuating a cycle of poverty. 

 

According to the Child Poverty Action Group, over 4.2 million children live in poverty, and a lack of financial literacy is a contributing factor. This highlights the interconnected nature of financial exclusion, poverty, and education. Without the right tools to navigate financial systems, many people, particularly from ethnic minorities and disadvantaged backgrounds, are left behind.

 

The cycle of systemic child poverty can only be broken, in my view, by reaching these children earlier and teaching them valuable financial lessons.  A new generation needs entrepreneurial and financial skills to build the resilience and confidence necessary to challenge the system and create better opportunities for themselves.


That’s why I’ve truly been ‘putting my money where my mouth is’ by making it my mission to spearhead the Scottish Youth Money Camps, embedding financial education at the core of what we do. These Youth Money Camps aim to bridge the knowledge gap by offering a unique and engaging educational experience for children aged 12-18. They equip children with the essential knowledge and skills needed to make informed financial decisions and develop an entrepreneurial mindset. A key component of these camps is teaching financial literacy through carefully designed, hands-on exercises and simulations, where children create financially sound business solutions to real-world challenges. This approach builds practical money management skills and fosters entrepreneurial thinking.   


After successfully concluding a transformative camp in Edinburgh a few weeks back - where parents expressed that their children had truly been given a new lease on life - we are confident that they work and are now seeking financial partners to help us expand these camps nationwide. Our goal is to establish a legacy by running a financial education program for the next generation and are looking for partners to help us take the camps nationwide.  You can watch STV’s coverage on the camp here: https://youtu.be/Fl_Ai0f07Ck

 

Young people are only one group of people I am keen to help.  Financial inclusion has been at the core of MoneyMatiX’s mission - to break down those barriers and help communities build a strong financial foundation with our programs and engagements focused on breaking these cyclical barriers. 

 

MoneyMatiX has been at the forefront of tackling these challenges and our Financial Inclusion Manifesto, which was launched earlier this year is one such way. Our focus is on educating communities about managing their finances and offering tools that help break the cycles of financial exclusion. We’ve seen how effective financial education can be in transforming lives, reducing reliance on high-cost credit, and helping individuals regain control over their financial futures.

 

The belief that underserved communities have access to affordable credit is often a misconception. For those with thin credit files, their initial experiences with mainstream financial systems often shape their entire financial trajectory.  When someone is told they can only qualify for a Basic Account, it reinforces the idea that they are unwelcome in the system. This "Basic Account mentality" keeps them in a cycle of minimal financial engagement, viewing the system as rigid, punitive, and not designed for their success.

 

One example is a member of the MoneyMatiX community, who has been in the UK for nine years and has stayed in what he describes as a “transit mode” - never fully engaging with the financial system beyond the absolute necessities. His approach has been shaped by his early, discouraging experiences and his perception that mortgage rates and lending criteria are not designed to benefit people like him. As a result, instead of using financial services to grow his wealth, he has chosen to send his earnings back to his country of origin, where he is saving to buy a property outright. For nine years, he has avoided the UK financial system, keeping his savings in cash or abroad, which represents a significant loss to the UK economy.

 

This story is not unique. It underscores a systemic issue where marginalised individuals feel disempowered, and the perceived risks of engaging with mainstream finance outweigh the potential benefits. This reluctance to engage not only limits their personal financial growth but also deprives the UK economy of active participants in the housing and investment markets. For the system to change, we must shift from offering basic, low-barrier accounts to providing educational resources, guidance, and access to better financial products that can build trust and promote long-term engagement.

 

In addition, many lenders in the UK target international students and make them feel welcome with education and bank accounts which work around the fact they don’t have UK-based credit files. Other don’t and I believe are missing a huge opportunity to build business!  It is for that reason I have just launched the International Student Money Programme to help students navigate an alien financial system. The program is designed to help individuals establish a solid financial foundation upon arriving in the UK, providing education on all aspects of money management and preventing financial risks or losses. In doing so, it also safeguards the university’s revenue and reputation.  I am seeking banking partners who are interested in engaging with these students upon their arrival in the UK, helping to build long-term relationships with them. You can watch STV’s coverage on the camp here: https://youtu.be/Fl_Ai0f07Ck

 

At MoneyMatiX, we’re dedicated to changing this narrative by empowering underserved communities with financial literacy and offering them the tools to access fair and transparent credit products. This work not only helps individuals thrive but also strengthens the wider economy.  You can read my DiGit article on how FinTech’s can solve financial literacy HERE. 

 

My final thought is on financial product design, I believe you must involve underserved communities particularly people of colour in conversations about future product design.   This is essential for creating inclusive, equitable solutions that address the diverse needs of all communities. 

 

Financial systems have historically marginalised minority groups, often resulting in barriers to accessing affordable credit, banking services, and wealth-building opportunities. By involving people of colour in the design process, financial institutions can better understand and respond to the unique financial challenges faced by these communities, such as higher poverty rates, lack of financial literacy, and systemic discrimination.  Diverse perspectives can help prevent the development of products that unintentionally perpetuate inequality and ensure that financial solutions are accessible, relevant, and empowering for everyone. This inclusivity also builds trust and fosters long-term customer relationships, benefiting both the community and the financial institution.  

 

I am calling out to the banking institutions to join our mission to provide fairer products and services for disadvantaged groups.




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