Monese, the pan-European Fintech, is reportedly expanding its product offering with the introduction of a Credit Builder service for its clients in the United Kingdom.
Having started a waiting list last year, Credit Builder is currently available and it’s reportedly being used by certain clients as part of an early access program. This is right before the product is made more widely available to UK clients in the next few months.
Monese explains that its Credit Builder will allow clients to reliably establish their credit history and enhance their reputation with the three major UK credit firms and lenders.
With an improved credit history, clients will be able to access better value borrowing opportunities, the announcement revealed.
Credit Builder is meant for consumers who might struggle to access credit since they’re credit ‘invisible’ and have little or almost no established credit history.
If you’ve never borrowed funds, which is particularly true for younger clients, or if you’ve never borrowed money in the UK, then you most likely will not have any credit history with UK credit companies.
Credit “invisible” customers tend to have far fewer options when it comes to borrowing funds. For instance, they may decide they want to ask friends or family members for loans (not always a comfortable situation), applying for high-cost credit like payday loans, or going without the money altogether.
Last year, it was estimated that there were around 5.2 million consumers in the UK who had been excluded from financial services since they were “credit invisible.”
Garrett Cassidy, Vice President of Credit at Monese, stated:
“Customer feedback has made it clear that access to credit is a persistent and real challenge in the UK. After the pandemic hit, we asked our customers what features they needed the most from an account. Access to credit always came out on top. The problem is that many of them are locked out of credit because they are credit invisible, so we can say with some confidence that our customers need Monese’s Credit Builder.”
Cassidy added:
“Many of our customers are also gig workers, side-hustlers, creatives and go-getters who struggle with accessing credit in the UK. We know that if anything happens to their bike, laptop or equipment, their livelihood is in danger. Credit is a critical part of them getting back on track and being able to earn and support themselves and their families.”
The introduction of Credit Builder has come after Monese’s acquisition of Trezeo, a Financial Conduct Authority (FCA) authorized financial services provider and lender serving independent and self-employed workers (in December of last year).