Applications open for £2.5m fintech prize fund

Innovation foundation Nesta is accepting applications for the next phase of its multi-million pound Open Up Challenge.

The £2.5m prize fund will look to back companies developing next-generation financial technology for small businesses.

Open to applicants globally, the initiative is seeking products and services that could help firms save time and money, secure better services, cut stress and harness data intelligence.

An independent judging panel will choose between 10 and 12 finalists at the end of June to receive grants of £100k.

Five or six will go on to receive at least £200k in November.

Applicants have until May 4 to enter. Both startups and established businesses can apply to the Challenge.

Nesta’s Challenge Prize lead, Chris Gorst, commented: “Open banking is becoming a reality and we have already started to see fintechs build tools and services that will impact the way small businesses discover, access and use core financial products and services.

“The next phase of the Challenge builds on this by encouraging these innovators to develop solutions that will enable small businesses to better navigate the market and compare the products and services now available to them.”

The first phase of the Challenge saw 20 teams participate, with each receiving a £50k development grant. In December, a judging panel whittled the finalists down to the 10 they thought would have the biggest positive impact, awarding them each an extra £100k.

Speaking further, Chris said: “It was evident from the first phase of the Challenge that there is an abundance of pent-up innovation ready to come to market and open banking has the potential to radically reduce the barriers for these new products to emerge. This is good news for small businesses.

“The Challenge is open to everyone, not just previous winners, and we are genuinely excited to see what other solutions the prize unearths.”