How Nationwide’s £2m Start-up Investment Became Lifeline For Thousands Affected By Poverty Premium
Summary
A \xa32 million investment in start-ups by Nationwide Building Society has been built into a lifeline for people experiencing financial exclusion.The Societys Incubator programme was kickstarted in 2021 to help level the playing field for people struggling with the poverty premium a wealth disparity where the lowest paid people in society end up paying higher costs for services and access to basic finance.Nationwide invested \xa31.8 million into the Fair By Design (FBD) Fund, a venture fund managed by Ascension Ventures providing capital to help grow businesses that make markets fairer by addressing the poverty premium. Plend is able to offer larger and more affordable credit by examining transaction data in order to understand a customers real financial picture. The first two properties have already been purchased with a further two in the pipeline.As well as investing in the start-ups, Nationwide has also provided financial backing and expert support from across the building society and partner charities in order to help bring ideas to life. It has also supported the launch of our first Green Home Improvement Loan, which helps homeowners finance affordable solar and heat pump installations to alleviate the skyrocketing costs of energy that UK consumers are facing today.Richard Dana, Co-founder and CEO of Tembo, said: It has been an amazing opportunity working with Nationwide to further develop our proposition to help customers find a route to homeownership. Combining our technology, agility and innovation with Nationwides insights, brand and sector expertise has enabled us to start delivering on our mission to make home happen for everyone.