UK-based digital bank Zopa and credit marketplace ClearScore have unveiled a new cross-industry initiative to strengthen consumer finances.
With inflation forecast to reach up to 13% and over 25% of the UK’s population facing low levels of financial resilience, the 2025 Fintech Pledge provides UK consumers with actionable steps to build up their financial resilience, according to the press release.
These actions will come from four focus areas:
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.
The path to achieving financial embetterment
The digital bank will announce the Fintech Pledge with ClearScore and discuss how technology is supporting a pathway to financial resilience.
Zopa’s officials stated that with the UK facing an unprecedented cost of living crisis, households need to use every tool at their disposal to build long-term financial resilience. This industry will unite a wide variety of companies in one goal of driving positive financial actions for millions living in the UK. They are happy to be working with ClearScore and as the scheme progresses, a variety of programs and partnerships will help to drive 10 million actions by 2025.
From ClearScore’s perspective, this initiative can make a real difference to people’s lives. The two companies can help people rethink their finances and take action to make themselves better off. The fintech industry has an important role to play in building financial resilience and ClearScore looks forward to working with Zopa and future partners to make this a reality across the UK.
More details on Zopa
Zopa Bank is the tech unicorn that raised USD 500 million from the early investors of Slack, Uber, and Alibaba to build a UK-based bank for saving and borrowing. Its P2P heritage brings 17 years of lending experience and combines the innovation of a fintech with the infrastructure of a fully regulated bank.
To date, Zopa has issued over 300,000 credit cards, launched a top-table savings account and fixed term savings product, as well as lent over GBP 7.5 billion in personal loans. It is authorized by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.
What does ClearScore do?
As a financial marketplace, ClearScore helps people access, and save money on, credit cards, loans, and car finance. The Group combines beautifully designed apps, with powerful, consumer-controlled data, and a cutting-edge technology stack to deliver high-growth marketplaces that retail financial products.
ClearScore serves 17 million users across the UK, South Africa, and Australia. The Group now partners with over 150 financial institutions around the world to ensure that the right product, gets to the right user at the right time.