57037Direct Credit... Reliable PaymentsClosedFeasibility StudiesInnovate UKThe Covid-19 crisis brought into stark relief the fragility of many people's finances, and their ability to cope with even the slightest financial shock. * As businesses closed, all but essential travel stopped, income for many, especially the already financially-vulnerable stopped completely. Those lucky enough to be furloughed are taking a 20% cut in income. * This has a massive impact on every section of our economy, as money has stopped moving, and with the main exceptions of supermarkets and public service, few of us are getting paid for anything. * As a result, the confidence that we all have, _and need to have_, in our financial systems has been rocked. * **We need that confidence to return, and quickly**. We need money to move now, whilst we're in the depths of lockdown, but also as the restrictions start to loosen, and people start to return to some new form of normality, we need different, better financial systems to support them and their budgeting. * Our project turns the way that we think about making regular financial payments - Direct Debits and Standing Orders - on its head. In doing so, it restores _power_ to the individual making the payment and _confidence_ to the payee that they will get paid; no more bounced Direct Debits. * Our solution is to replace Direct _Debits_ with Direct _Credits_. Using established Blockchain (Smart Contract) technology to ringfence _Direct Credits_ in a user's account as soon as income (salary or state benefits) is received. * By doing so, the money is available to meet the due amount, when it is due, providing that much-needed confidence to the payee that the money will be paid. * It provides power to the payee by decreasing the potential for default. This has the additional consequence of reducing collection costs. In doing so, it reduces financial exclusion - enabling individuals and small businesses to get themselves back on track and participating in the UK economy as **service providers have the payment collection confidence that they need in order to supply their products / services.** * The Direct Credits solution can be delivered as a spur to economic activity and revival within a very short period. This project requires just four months to produce a working, tested solution integrated into Pilot applications. * Post Covid-19 recovery, Direct Credits will be a more resilient payment mechanism to help guard against new threats to economic activity & confidence. EXTENSION UPDATE: The solution developed here can be used to provide local government with a facility whereby they can provide banking services to residents with built-in financial literacy development and transactional data analysis to enable debt consolidation at mainstream rates - thus removing one of the most significant drivers of the Poverty Trap.