Personal finance app,
TotallyMoney, has launched a new open banking-powered feature to help customers track regular outgoings and avoid missed payments, so they can protect and build their credit scores:
- High inflation and interest rates continue to squeeze people’s finances, with 5.6 million UK adults missing payments on bills or credit commitments in just six months*
- Payment behaviour factors influence up to 48% of a customer's credit score, and can impact an individual's ability to access every day credit products and services†
- The new feature helps customers track paid and upcoming payments, and informs them of credit report impacting bills, so they can improve their score and unlock better offers
- This is the latest feature from TotallyMoney, made possible through its long-standing partnership with data intelligence platform Bud Financial (Bud)
- With over five million customers, TotallyMoney is the financial app for the UK’s under-served population, offering plans, products and insights to help people unlock a life of more choices.
Growing pains for Generation Inflation
In 2022, TotallyMoney commissioned PwC to shine a light on the UK’s financially under-served population. The report found that in just six years it had grown by 50% from 13.6 million to 20.2 million, with an additional 8.9 million financially fragile at risk of becoming under-served‡.
Since then, inflation and high interest rates have made it harder for people to keep up with credit repayments, bills and other commitments. The FCA’s Financial Lives survey found that 10.9 million adults feel these payments to be a heavy burden, and 5.6 million had missed at least one in three months.
Payment behaviour makes up a significant proportion of somebody’s credit score (48%), and can impact both the number and quality of credit offers a customer has access to. Research has found that poor scores can cost credit card customers an extra £693 annually§, and not only results in more expensive borrowing, but also higher car insurance premiums, and restricting them to pay-as-you-go SIM deals and energy meters.
Making customers data work for them, not against them
TotallyMoney research found that 9.8 million adults (19%)¶ lack confidence in making financial decisions. In addition, 19.1 million adults (37%)¶ would grant open banking access if it meant they could manage their own finances better.
With TotallyMoney’s new feature, individuals can connect their real-time open banking data and track when regular payments will be coming out. It also lets them know which expenses could have an impact on their credit file, so they can protect and build their score.
Additional insights inform customers of how much money they’ll have left after bills each month, helping them plan their finances and avoid their overdrafts, so they can create financial momentum and move forward with confidence.
Alastair Douglas, CEO of TotallyMoney comments: “The past few years have played havoc with people’s finances, with many now struggling to manage their money and make ends meet. Millions are missing payments, and are often kept in the dark about what it could mean for their financial future.
“To help with this problem, customers can now connect their open banking data through the TotallyMoney app to track paid and upcoming bills, so they can stay on top of their finances, and protect their credit score.
“We’re also working with a number of open banking ready lenders, who we’re integrating via APIs, meaning they can benefit from quicker and more accurate affordability assessments, and resulting in better outcomes for customers.
“We believe in a fairer financial world — and putting customers in control of their own data, so it works for them, not against them is key.”
Jakub Piotrowski, VP of Product at Bud adds: "TotallyMoney's innovative approach to helping financially under-served adults manage their money aligns perfectly with our mission at Bud. We’re proud to be a long-standing partner in their journey to empower individuals with the tools they need to take control of their financial futures. Bud’s cutting-edge transaction AI underpins TotallyMoney's new feature, ensuring that customers have accurate insights to track their payments and boost their financial position.
“By collaborating with TotallyMoney, we're making strides toward a fairer financial world where individuals can harness their own financial data to improve their lives. Together, we’re putting customers in control, and that's what matters most.”
