Detecting economic abuse using lending data

Earlier this year, NestEgg won Fintech Scotland’s Consumer Duty Challenge for improving outcomes for vulnerable borrowers. Building on this foundation, we’re launching new research into one of the most hidden forms of vulnerability: economic abuse.

An often hidden vulnerability

The law recognises economic abuse as a form of domestic abuse, where one person controls another’s access to money and often forces them into debt.

The statistics are stark: 4.1 million UK women experienced economic abuse from a current or former partner in the past year. Black, Asian, and racially minoritised women are more than twice as likely to experience this (29%) compared to White women (15%).

Lenders are uniquely positioned to help

Abuse may happen in private, but its financial effects often show up in lending data: missed payments, unusual credit requests, and suspicious transfers. This positions lenders perfectly to spot warning signs and intervene effectively. Not only does this ensure fulfilling Consumer Duty compliance, but lenders are also proactively supporting vulnerable borrowers.

NestEgg’s approach

NestEgg is analysing data from tens of thousands of credit union loan applications. Our goal is to identify patterns that may signal economic abuse. Our approach involves:

• Pattern recognition: using machine learning to detect anomalies in payment behaviours, application patterns, and financial transactions
• Risk indicator mapping: developing a framework of financial red flags that correlate with economic abuse
• Intervention design: creating real-world response tools lenders can implement as soon as warning signs appear

These insights will help lenders spot red flags earlier and respond with appropriate care and support.

Get involved

For Professionals and Advocates: if you work in domestic abuse support, financial services, or related fields, we want to hear from you. Help us ensure we’re asking the right questions and exploring the full range of abuse indicators.

For those with lived experience: your insights are invaluable in shaping both our research approach and intervention strategies. We will treat all participation with complete confidentiality and provide appropriate support throughout.

For financial institutions: NestEgg’s Broker Platform already provides lenders with practical ways to support borrowers facing financial distress. Banks can use our platform to refer individuals to credit unions. This creates opportunities to identify those at risk and develop joined-up solutions.

Ready to contribute? Contact us to discuss how you can help shape this vital work.