TotallyMoney Introduces Open Banking-Powered Tool for Financially Under-served UK Adults

Published 8 months ago

The personal finance app, TotallyMoney, has unveiled a new feature aimed at helping customers keep track of regular expenditures and avoid overlooked payments, thereby enhancing their credit scores. This innovative tool is a product of TotallyMoney’s long-standing collaboration with data intelligence platform Bud Financial.

The Challenge of High Inflation and Interest Rates

In recent years, high inflation and interest rates have strained personal finances, resulting in 5.6 million UK adults defaulting on bill payments or credit commitments in a span of six months. These payment behaviors significantly influence a customer’s credit score and can affect their ability to access everyday credit products and services. This new TotallyMoney feature aims to address these challenges by helping customers monitor paid and upcoming payments, and alerting them about credit report impacting bills.

Financial Struggles for UK’s Under-served Population

A 2022 report commissioned by TotallyMoney and conducted by PwC revealed that the UK’s financially under-served population had increased by 50% over six years, from 13.6 million to 20.2 million. An additional 8.9 million were found to be financially fragile and at risk of becoming under-served. Payment behavior, which makes up around 48% of a credit score, can impact the quantity and quality of credit offers available to a customer. Poor scores can cost credit card customers an extra £693 annually, leading to more expensive borrowing, higher car insurance premiums, and limiting them to pay-as-you-go SIM deals and energy meters.

Empowering Customers with Data

TotallyMoney’s research found that 19% of adults lack confidence in making financial decisions, while 37% would allow open banking access if it could improve their financial management. The new feature allows users to connect their real-time open banking data, track regular payments, and receive alerts about expenses that could impact their credit score. In addition, it provides insights into how much money they will have left after paying bills each month, assisting them in planning their finances and avoiding overdrafts.

Alastair Douglas, CEO of TotallyMoney, emphasizes that the company’s goal is to create a fairer financial world by putting customers in control of their data. Jakub Piotrowski, VP of Product at Bud, echoed this sentiment, expressing pride in assisting TotallyMoney’s mission to empower individuals with tools to manage their financial futures.