FinTech Scotland has launched a new cross-sector research and innovation programme aimed at improving the financial well-being and long-term financial health of people across the country by focusing on the link between everyday finances and health in later life.

With longer lives and more complex financial systems putting pressure on traditional savings and advice models, the Finance and Health Lab aims to improve our understanding of what causes financial vulnerability in later life, and co-design solutions to strengthen long-term financial resilience.

Currently, Office for National Statistics figures suggest the average pension wealth in the UK for people between 65 and 74 is a shade under £146,000, equivalent to just over 4.5 years of ‘moderate’ retirement income, according to Retirement Living Standards.

Added to that, 54% of women aged 55–64 in the lowest third of the UK’s wealth distribution reported at least one mobility issue, compared to just 20% in the wealthiest third.

Bringing together financial institutions, fintechs, academics, health experts and policymakers, the Lab will offer a platform to “rethink and reimagine” how financial services can better support such individuals through innovation, bridging the gaps between industry, policy, data and lived experience.

Funded by the Scottish Government and delivered in collaboration with the University of Edinburgh and Edinburgh Innovations, the Lab will allow innovators to collaborate and test new ideas, potentially generating research that will shape future service models, product development, and policy around financial and health outcomes.  

By fostering collaboration amongst partner organisations, the Lab will also aim to support new ventures, prototypes, and pilot projects, strengthening Scotland’s competitiveness in the global fintech market.

“Scotland is the ideal test bed for an initiative like the Finance and Health Lab, with a strong fintech ecosystem, globally recognised universities, and a thriving financial services sector,” said Dr Andrea Taylor, chief executive officer at Edinburgh Innovations.

“The solutions that emerge from the programme could make a significant difference to people’s lives and further cement our position as a world leader in collaboration and innovation between the public, private, and education sectors.”

Participating organisations will work together on a series of defined challenge areas, such as delivering more inclusive digital financial services for older people, creating personalised planning tools for later-life health events, and helping people feel more confident in their financial decision-making.

The four-month programme will include a national conference on innovation in finance and health, along with open innovation calls for projects targeting high-priority issues related to later life and financial wellbeing. 

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Selected ventures will be supported through prototyping, testing and trials in collaboration with industry and public sector partners, while a series of webinars, roundtables, and events will share insights, build networks and facilitate collaboration between stakeholders.

Through regular publications, case studies and media work to highlight emerging findings, the Lab will promote its success stories and detail the policy implications of its findings for both the public and industry.

“The retirement savings gap is a longstanding challenge in Scotland and across the UK – and it is only going to grow in importance as more people live longer and, therefore, need more money to fund themselves in later life,” said Aleks Tomczyk, chief executive at FinTech Scotland.

“The Finance and Health Lab will bring together the best minds from across different sectors to find different types of solutions – whether that is policy, research, or technology – and set out a way forward for ensuring people can have a good retirement, minimising the adverse impact that poor health or limited finances can have.”