Associate feature: The Future of Economic Wellbeing in Scotland

While we have all read about the ongoing cost-of-living crisis, it’s easy to forget that behind every statistic is a person with a life, responsibilities, and dreams for a better future.

At Smart Data Foundry, we are working to shift the dial on poverty and inequality by using financial data to provide a fuller, more immediate picture of economic wellbeing across the country. By developing products and services that reflect what matters most to the public, our goal is to empower policymakers, government and NGOs to use this powerful data to understand the needs of the population and amplify the voices of those who might not have the opportunity to advocate for themselves. Used in this way, financial data has the power to illuminate circumstances and challenges in a completely new way, grounded in hard facts, not assumptions.

So, how do we do it?

One of our most powerful tools is the Economic Wellbeing Explorer, unveiled to representatives from the Scottish Government, academia, local government, researchers and NGOs at our Data Powered Futures – The Future of Economic Wellbeing conference at the Edinburgh Futures Institute.

What began as a pilot with East Renfrewshire Council has evolved into a powerful platform that draws on multiple data sources. It utilises near real-time de-identified financial data from 5.3 million bank accounts, alongside openly available contextual data, to map economic resilience and wellbeing at local, regional, and national levels, and age and income groups.

Dr. Lukas Lehner, from the University of Edinburgh and a speaker at our conference, highlighted why using near real-time data matters: 

He said: “Traditional data from household surveys is collected annually and can miss short-term shocks and fluctuations in earnings. Having access to de-identified bank transaction data reveals real-time income flows, spending and financial stress and can improve targeting of support and make interventions more timely. It gives policymakers a granular, behavioural lens on poverty that goes beyond static snapshots.” 

De-identified financial data can reveal significant, emerging trends. For example, tracking the percentage of people overdrawn every month after paying for essentials can highlight pressure points. This might include people unable to fix their washing machine without payday loans, or signs that the squeezed middle risk entering the poverty cycle as a result of long-term financial commitments meeting macroeconomic shocks.    

The Power of Cross-Sector Collaboration

A key theme at the conference was the importance of cross- sector collaboration. Dr. Tom Wilkinson, Scottish Government's Chief Data Officer, outlined the government's vision to lead in data-informed policymaking and drive societal innovation. He described the considerable progress in data-sharing in recent years as equivalent to moving from "rowing between data islands with paper notes" to the invention of semaphore, heralding a new era of swift, clear communication between once-isolated systems.

Sage's Will Taggart, involved with Smart Data Foundry on the Small Business Tracker, spoke passionately about the value of timely, accurate data in shaping policy. He shared a personal anecdote from South Africa, where a large corporation’s 183-day payment terms forced his small company to operate as an involuntary creditor. “As a small business you are unable to represent yourself and that really stuck with me. It’s one of reasons why I believe having the right data at your disposal is just so important – it helps small enterprises to be heard.”

Dr. Gemma Cassels, Head of Strategy for the Data-Driven Innovation Programme, shared impactful cross-sectoral projects, such as robots designed by the National Robotarium in collaboration with nurses and carers to help older adults remain independent.  However, she was candid about the ongoing challenges: “Breaking down data siloes is still hard. Valuable insights are often locked behind firewalls. But when we do manage to collaborate, the results speak for themselves, better data leads to better policies, and better lives.”

How can you get involved?

Scotland stands at the forefront of a new era of decision-making, one driven by near real-time data enhancing official statistics. The opportunity before us is enormous. At Smart Data Foundry, we’re proud to be part of this movement. But we can’t do it alone.

We invite policymakers, researchers, data holders, and community leaders to join us, share data responsibly, collaborate across boundaries, and turn insight into action. Together, we can build a future where everyone's economic wellbeing is visible, understood, and supported.

Because when we harness the full power of data for public good, we don’t just improve our understanding of society, we have the opportunity to shape it for the better.

To find out more about what we do, please visit – Smart Data Foundry