Fintech is a movement that is offering organisations a huge selection of digital services for them to choose from.
But they need not be limited by what is being offered on the fintech menu specifically but go out and tell the world what they need and what they are willing to pay for it.
Those that start fintechs are entrepreneurs. They have an idea of how to address a need in the market through an app and get investment to support them designing it and taking it to market.
But why not go off the menu and tell the fintech what you need and promise money to the company that can deliver it. It saves the fintech finding a business need and saves the organisation developing the platform. A real win win. Or even a win win win if you include the benefit to renters.
That is what the UK Treasury is doing. It has announced that it wants a system that can help people that rent build up their credit scores, so they can ultimately get a mortgage and buy a property. It wants rents paid to be recognized when people apply for mortgages. It makes sense that someone paying a high monthly rent would be able to pay a mortgage of the same value.
But the problem is credit referencing agencies don’t take into account rental data. They can’t access it.
So, through its Rent Recognition Challenge, HM Treasury is offering entrepreneurs £2m if they can come up a system that will enable millions of renters to record and share data about what they have paid in rent.
Stephen Barclay, economic secretary to the Treasury, said “People’s monthly rent is often their biggest expense, so it makes sense for it to be recognised when applying for a mortgage. Without a good credit score, getting a mortgage can be a real struggle.
Most lenders and Credit Reference Agencies are unable to take rental data into account, because they don’t have access to it. The Rent Recognition Challenge will challenge firms to develop an innovative solution to this problem.”
The Challenge will open to applications early in the New Year, and development will conclude in October 2018
This is a great example of how organisations can access software development expertise without hiring the staff internally. It is a form of IT outsourcing that reduces costs and provides agile development teams on a pay for result basis.