Repayments platform haboo money is joining forces with Griffin, the UK-based bank for fintechs and platforms, to launch a save-as-you-repay wallet that helps borrowers pay off their debt in a more flexible way.
Through the wallet launch, haboo money says it hopes to tackle key challenges for both sides of lending. For lenders, the benefits include stronger loan performance with fewer missed payments, reduced cost of payment collection, reduced burden on collections and arrears teams, valuable customer insights, and better compliance with consumer duty regulations by delivering good customer outcomes.
For borrowers, haboo offers flexible repayment, replaces problematic direct debits with variable recurring payments, and provides a wallet that encourages responsible overpayment to safeguard future repayments, build a rainy day fund or pay down debts faster. Throughout the repayment journey, customers receive personalised support with behavioural nudges that reward positive actions and drive engagement between customers and their repayments.
“The consumer debt crisis is an escalating challenge for both borrowers and lenders, as growing numbers of people rely on unsecured credit to make ends meet,” explained Hannah Baynham, co-founder at haboo money. “For the first time, new financial technologies make it possible to address this issue in a way that works for everyone involved.
“By partnering with a bank like Griffin, we’re able to empower borrowers to take control of their repayments and build healthier financial habits – while giving lenders smarter, more sustainable ways to support their customers.”
David Jarvis, co-founder and CEO at Griffin, also added: “What haboo is doing to improve lending experiences for everyday people is truly inspiring. They are putting flexibility and control back into borrowers’ hands while helping lenders build healthier loan books. We’re excited to provide the banking infrastructure that enables this innovative repayment solution and look forward to supporting their growth.”
