Co-operative Fintech

The problem:

The UK financial technology market is both fast growing an innovative in its product offering.

Fintech ranges from innovative app-based banking methods, to international exchange, bill payments and stock trading. As it stands fintech is defined by high reliance on venture capital, fast growth and regulatory issues leading to many fintech’s registering outside of the UK’s regulatory regimes.

Whilst primarily utilised by younger more tech savvy individuals, fintech businesses have come under fire for issues around data privacy, ethics and risks caused by criminal use and cybercrime in particular.

Our Solution:

A Co-operative Fintech could provide a new radical and innovative solution for both personal and business banking.

This model would be premised on offering a co-operatively owned and operated alternative to the current fintech market, premised on low-risk long term investment models and transparency and accountability for its members. This model could take a variety of forms, though we believe the most prudent approach would be to white label an existing platform, and then use a community share offer to attract both an initial membership and capital reserves. However, from this point, it will be important to determine whether the service works on a monthly fee or transaction model, with additional revenue options including financial service commissions, interest through lending and similar options.   

In terms of services, would aim to offer a full suite including: current account services, savings accounts, investment options, virtual payments and currency conversion. We would also listen to our members to build new services catered to their needs.

Areas Of Impact:

  • Co-operative finance

  • Ethical banking

  • Technological innovation

  • Membership innovation through anapp interface

  • Platform expansion

A cooperative fintech would provide innovation impact through both its embrace of technology and demonstration of the viability of the cooperative model in a tech setting. This is of particular relevance too:

  • Youth

  • Start ups

  • Ethical businesses looking for a co-operative banking option

  • Credit unions and potential partner organisations

  • Retail and worker Co-ops

Why does this help?

  • A fintech co-operative would primarily create social benefit through the delivery of a range of ethical banking solutions to its members

  • A new source of potential debt and financial instruments aligned to cooperative values rather than purely premised on shareholder returns

  • The strengthening of the existing credit union and community banking sectors, through the publication of their services and products on the platform.

  • Through creating a new large-scale source of investment and capital, owned and controlled by a co-operatively minded membership