A new Economic Wellbeing Explorer, launched today by Edinburgh’s Smart Data Foundry, offers an unprecedented view of financial hardship in Scotland.
Using near real-time data from 5.3 million bank accounts, the Explorer tracks economic resilience and wellbeing at national, regional, and local levels, and between age groups and income ranges.
Latest insights from the platform reveal that 16 per cent of adults in Scotland rely on their overdraft each month – rising to 24 per cent among 18 to 39-year-olds. Almost 1 in 7 people (14 per cent) are spending at least 20 per cent more than they earn, and more than a third (34 per cent) see their bank account balance fall below £100 on more than one occasion each month.
As part of its initial rollout, the platform is now open for registration, allowing public sector bodies, NGOs, researchers, economists, analysts and journalists to use these insights for evidence-based decision-making and reporting on poverty and inequality.
Topline insights will be available for free at a national and regional level, with deeper insights at a local level (Local Authority and Intermediate Zone) available via subscription.
The launch comes at a time of mounting financial pressures for many, with April bringing a wave of cost increases – including council tax, energy bills, road tax and the TV licence fee – prompting some to label it ‘Awful April’.
Dougie Robb, CEO of Smart Data Foundry, said: “For hundreds of thousands of people in Scotland, payday no longer brings relief, just a brief pause before the struggle begins again. Rising costs, modest wage growth, and unexpected expenses mean that many people are spending more than they earn each month, relying on overdrafts or going into debt just to cover the basics.
“The Economic Wellbeing Explorer is a completely new way to securely access in-depth financial information which gives a real insight into the economic wellbeing of the nation.
“At Smart Data Foundry, we believe financial data is an untapped resource, which can help drive policymaking and decision-taking that improves people’s lives. Data is not just information – it’s hugely valuable in creating meaningful change. By unlocking the power of financial data, we can transform public services, ensuring support reaches those who need it most.
“While we are rolling out the Explorer in Scotland first, we aim to extend this initiative to the rest of Great Britain in the near future, adding more indicators and allowing users to explore data at an increased level of granularity.”
The launch follows a successful pilot with East Renfrewshire Council, where financial data was integrated with Council data such as requests for financial support, and other public sector data such as DWP data on children living in poverty, to better understand the impact of the cost-of-living crisis. The Council was able to target interventions more effectively, uncovering hidden pockets of deprivation that were previously missed.
All data supplied to Smart Data Foundry is deidentified at source and is held and managed within a strict information governance framework to ensure security, privacy, and ethical standards.
Smart Data Foundry was established in 2022 to unlock the power of financial data to tackle big issues like poverty and inequality and create positive impact across society, the economy, and the environment.
An independent University of Edinburgh subsidiary, the not-for-profit organisation works with major financial institutions, the public sector and charities to develop insights, inform solutions, and drive forward the data-for-good movement.
SDF has access to unparalleled de-identified private sector financial data via pioneering partnerships with leading financial institutions, including NatWest, Virgin Money, Sage, Moneyhub and more.
The Economic Wellbeing Explorer is powered by data from NatWest Group, alongside contextual open data sources such as housing, education and demographic data.
