Zopa, a leading digital bank, has partnered with credit marketplace ClearScore to improve users “financial resilience” as inflation rockets higher, diminishing the purchasing power of the population. Zopa notes that inflation is predicted to hit 13% with no end in sight for the financial pain.
The goal is to “strengthen finances amidst rising cost of living” helping 10 million consumser to take action to improve their financial existence. The launch is said to be a first phase of a “coalition building plan” to work with the UK Fintech industry to counter the “cost of living crisis.”
The partnership is expected to focus on four categories:
- Savings – Moving deposits from low to high interest-yielding accounts and setting up saving pots to make savings work harder
- Credit building – Signing up to a credit building tool to access more and better value financial products
- Debt consolidation – Using a debt consolidation tool to understand how much could be saved each month by consolidating, reducing financial obligations
- Utility marketplaces – Searching for lower priced utility deals on digital marketplaces to save money on one or more monthly payments
Zopa stated that it will announce the Fintech Pledge today along with ClearScore at Dreamforce 2022, the Salesforce annual event.
Jaidev Janardana, CEO at Zopa, explained the UK is facing an unprecedented rise in the cost of living and households need to use all of their tools to battle inflation.
“This industry pledge – the first of its kind – will unite a wide variety of companies in one goal of driving positive financial actions for millions living in the UK. We’re delighted to be working with ClearScore as we begin this journey. As the scheme progresses, a variety of programmes and partnerships will help to drive 10 million actions by 2025.”
Justin Basini, CEO and co-founder of The ClearScore Group, said the initiative can make a difference in people’s lives. They want to help people rethink their finances and take actions that will improve their financial lives:
“The Fintech industry has a key role to play in building financial resilience and we look forward to working with Zopa and future partners to make this a reality across the UK.”
A website, pledge2025.org, is available for other firms to join the 2025 Fintech Pledge.