Enter AI: A New Way to Make Finance More Inclusive?
How AI Is Transforming Financial Inclusion for Marginalised Communities
Artificial intelligence is already shaping how we bank, borrow, and budget. In fact, 75% of UK financial firms are now using some form of AI (Bank of England & FCA, 2024). But AI’s real value lies in what it could do particularly for groups historically excluded from the system.
Here are some ways AI is being used to break down financial barriers:
1. Alternative Credit Scoring
Traditional credit scores often exclude people without long borrowing histories. But AI can analyse alternative data, like mobile phone usage or rental payments, to assess someone’s financial reliability more accurately. This gives access to credit for people who would otherwise be rejected.
A Nature review (2025) shows AI-driven credit models have “strong potential for increasing approval rates among underbanked populations, when designed ethically and transparently.”
2. AI-Powered Budgeting & Advice
For those overwhelmed by financial planning, AI-driven apps can offer personalised support such as budgeting tips, savings goals, and reminders based on real spending patterns. These tools can be especially helpful for people in transition or facing income insecurity.
Kaplan notes that AI-powered advice tools can “fill gaps in financial literacy while providing consistent, judgement-free guidance.”
3. Detecting Bias and Reducing It
One of the most promising (and challenging) aspects of AI is its ability to surface and correct bias if the systems are designed with that in mind. The UK’s FCA is exploring synthetic data models to simulate how underrepresented users are treated, which could help spot and fix discrimination early in the process.
The Warning: AI Isn’t Neutral
It’s easy to assume that because AI is based on data, it must be objective. But as several studies have warned, AI can replicate the very same biases it’s supposed to solve if it's trained on skewed or incomplete datasets.
A study on LGBTQ+ exclusion in algorithmic design found that “cis-heteronormative assumptions are embedded in mainstream training data,” leading to persistent underperformance for marginalised users (Springer, 2024).
That’s why it’s crucial that developers, banks, and policy-makers actively design for inclusion not just efficiency.
Where Hyfa Stands
At Hyfa, we believe AI and technology have the potential to make life better but only when those creating the tools are consciously including those who are often excluded.
We’re committed to:
- Working with partners to design inclusive financial tools
- Educating people about their rights and options
- Advocating for ethical, community-first innovation
Final Thought
AI won’t fix financial inequality on its own but it can be part of the solution. With the right safeguards, ethical standards, and people-first thinking, we can use technology not just to manage money but to build a more inclusive financial system for everyone.
Want to learn more about our work around financial wellbeing and technology?
Explore our Resource Hub or connect with us on LinkedIn.
Hyfa at NAMSS 2025: Supporting Student Services Through Financial Education
Blog post, 22nd March 2025
Hyfa at NAMSS 2025: Supporting Student Services Through Financial Education
Earlier this month, Hyfa Foundation attended the NAMSS Annual Conference for the first time – a milestone moment for us as a charity.
Co-founder Stephen Mix represented Hyfa at the event, joining student services professionals from across the UK for two days of discussion, insight, and connection. As our first involvement in NAMSS, we weren’t sure what to expect – but the reception was overwhelmingly positive.
“It was energising to see how many people genuinely care about improving students’ financial literacy,” said Stephen. “Many of the professionals I spoke to told me that students regularly cite financial knowledge as one of their biggest areas of concern. It was clear there’s a real demand for practical support.”
Our online financial education course was particularly popular, with many visitors to the stand keen to find out how it could be integrated into their existing support frameworks. There was also strong interest in the bespoke, in-person sessions we deliver, designed to meet the specific needs of students navigating life’s key transitions.
For us, the conversations confirmed what we’ve long believed – that financial education is a core part of student support, and that demand is growing. From budgeting and managing debt to understanding payslips and planning for the future, students need more than academic learning – they need tools that equip them for real life.
We’re now actively following up with the individuals and organisations we connected with, and look forward to building long-term partnerships that put student support and financial education front and centre.
10 Budgeting Tips Every Young Adult Needs When Moving Out for the First Time
Blog post, 9th January 2025
10 Budgeting Tips Every Young Adult Needs When Moving Out for the First Time
Moving out for the first time is an exciting milestone in any young adult’s life. It represents freedom, independence, and a fresh start. However, it also comes with financial responsibilities that can be overwhelming without proper planning.
To help you navigate this transition, we have compiled ten essential budgeting tips that every young adult needs to know.
1. Create a Monthly Budget
Start by listing all your income and expenses. Your income includes your salary, any part-time earnings, or financial support. Expenses should cover rent, utilities, groceries, transport, and savings. Use budgeting apps to track your spending and stick to your budget.
2. Understand Your Fixed and Variable Costs
Fixed costs, like rent and internet, are consistent each month. Variable costs, such as entertainment and dining out, can fluctuate. Prioritise covering fixed costs first, and allocate a specific amount for variable expenses.
3. Set Up an Emergency Fund
Unexpected expenses, like medical bills or car repairs, can disrupt your finances. Aim to save at least three months’ worth of expenses in an emergency fund. Start small and contribute consistently.
4. Shop Smart for Groceries
Plan your meals, make a shopping list, and stick to it. Look out for sales, buy in bulk when possible, and avoid shopping when you’re hungry. This will help you save money and reduce food waste.
5. Learn Basic Cooking Skills
Eating out regularly can strain your budget. By cooking at home, you’ll not only save money but also enjoy healthier meals. Invest in a few essential kitchen tools and learn simple recipes.
6. Avoid Lifestyle Inflation
As your income increases, it’s tempting to upgrade your lifestyle. However, keeping your expenses steady while saving the extra income will help you build a stronger financial foundation.
7. Be Cautious with Credit Cards
Credit cards can be helpful but should be used wisely. Avoid accumulating debt by paying off your balance in full each month. Keep track of due dates to avoid late fees and interest charges.
8. Compare Prices Before Committing
Whether it’s renting a flat or buying furniture, shop around to find the best deals. Use online marketplaces, second-hand stores, and community groups to save on big-ticket items.
9. Factor in Hidden Costs
Moving out involves more than just rent. Don’t forget to budget for utilities, council tax, renters insurance, and transport costs. Being aware of these hidden expenses will prevent financial surprises.
10. Invest in Financial Education
The more you understand money management, the better equipped you’ll be to handle your finances. Consider taking a personal finance course or reading books on budgeting and saving.
Final Thoughts
Moving out is a significant step that requires careful financial planning. By implementing these budgeting tips, you’ll set yourself up for success and minimise the stress of managing your finances. Remember, the Hyfa Foundation is here to support you with resources and advice as you navigate this new chapter.
If you’re ready to learn more, check out our financial education resources at Hyfa Foundation Courses. Together, we can help you achieve financial confidence and independence.