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.
