Associate feature: Data as a catalyst for public sector innovation

The use of data across the public sector is growing, with the UK Government recently unveiling plans for a National Data Library which could see the value of public data held by organisations like Local Authorities, NHS Boards, and the DWP unlocked securely and safely.

This focus on data is long overdue. Data provides a foundation of evidence and insights that can help us make better informed decisions, and with the rapid adoption of digital technologies across all areas of our lives, collected data has never been so extensive, diverse and up-to-date.

At Smart Data Foundry, we believe financial data is an untapped resource, which can offer valuable insights into economic wellbeing and help drive policy-making and decision-taking that improves peoples’ lives.

Every time we tap our bank card or make an online payment, we leave behind a “digital footprint”. While a single transaction might seem insignificant, at scale, these data points reveal powerful socioeconomic patterns.

Consumer banking data allows us to explore areas like income, its source - whether a salary, pension or benefits - and whether it is stable or volatile. It can show us cash balances and overdraft usage, highlighting financial resilience or stress, and it can reveal the balance between committed expenditure such as mortgage or rent and utilities, and discretionary spending, such as travel, clothing and entertainment.

By aggregating and analysing these patterns, we can gain a richer understanding of financial wellbeing across different regions and demographics. When combined with other data sources, such as public sector records, this insight becomes even more powerful in shaping policies that make a tangible difference.

A prime example of this approach is our work with East Renfrewshire Council to create a cost-of-living insight dashboard to help the Council understand the financial challenges faced by its citizens.

Through our key data partnership with NatWest Group, we receive a weekly feed of transactions from current account users living in East Renfrewshire. The data is deidentified and aggregated, ensuring that no individual or household can be identified, but it allows us to pinpoint areas with higher levels of financial distress.

The financial data is seamlessly integrated with the Council’s data, such as school attainment, financial support and advice requests, and school meal grants. The result is a comprehensive view of local economic wellbeing, which can help the Council determine whether its resources are going to the right places.

The dashboard has already uncovered unexpected insights. It confirmed financial distress in known areas where take-up of financial advice from the Council was significant, but also highlighted even higher overdraft levels in some areas where take-up of financial advice was low. This allowed the Council to target support in these emerging areas, intervening before financial struggles escalated further.

Building on this success, Smart Data Foundry will launch a Scotland-wide version of the Economic Wellbeing Explorer tool. This will enable national, regional, and local comparisons of key indicators such as financial resilience and spending behaviours.

However, we’re not just building a tool – we’re driving a movement. We want to work with policymakers, governments, and public service providers to help them embrace the power of financial data and realise its potential to revolutionise service delivery. By leveraging these insights, they can plan resources more effectively, improve service design, and develop data-driven policies that are not just well-intended but truly impactful.

One of the most powerful aspects of the financial data we work with is its longevity and refresh rate. Unlike static reports, our data is continuously updated, allowing policymakers to track the impact of their interventions in near-real time. This enables them to work dynamically, adapting and refining policies as challenges evolve.

At Smart Data Foundry, we believe that data is not just information – it’s our most valuable resource in creating meaningful change. By unlocking the power of financial data, we can transform public services, ensuring support reaches those who need it most.

Financial wellbeing is at the heart of a fairer, more equitable society. When we harness data effectively, we can identify risks earlier, target resources smarter, and build a future where economic security is within reach for all.

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