Open banking provider TrueLayer has forged a partnership with UK credit management app Incredible to facilitate automated recurring debt repayments using TrueLayer’s Variable Recurring Payments (VRPs).
Incredible can now implement the TrueLayer platform to enable customers to set up automatic payments between their bank account and their Incredible account.
Incredible uses open banking data APIs to consolidate its customers’ account information in a comprehensive dashboard. The dashboard enables customers to see, track, forecast and repay their borrowings.
With the TrueLayer VRPs, Incredible customers can automate their repayment strategy and take a longer-term approach by reducing their borrowing and improving their overall money management; a process known as ‘sweeping’.
The automated, mobile-first payments settle immediately and don’t require a direct debit mandate. This process saves customers time and creates a more convenient experience. Customers provide a one-time authentication using biometrics, increasing convenience while maintaining important security standards.
TrueLayer explains that the news comes at an ideal time for UK consumers. The Bank of England reported that individuals borrowed £1.5billion in consumer credit in November 2022. Credit card borrowing accounted for 80 per cent (£1.2 billion) of that total.
An estimated 1.9 million households also missed a scheduled debt repayment at the end of 2022, Which? reported.
Tending to customers’ needs
Yaseen Rostom, CEO and co-founder at Incredible, explained the significance of the news for the credit management app. Rostom said: “At some point in our lives we’ve all fallen prey to unplanned overdraft fees, late payment fees and other charges, simply because it’s a byproduct of a system that does very little to optimise for financial resilience.
“Incredible is pioneering a new use case for VRPs, facilitating better credit repayments to improve financial well-being. We’re excited to work with Truelayer to bring us closer to fulfilling the promise of open finance; making money work for people.”
Nick Tucker, head of financial services at TrueLayer, also commented. He said: “A new form of open banking-enabled technology, VRPs are a step change in debt management, allowing users to set up secure and flexible repayment plans with greater ease and convenience.
“We look forward to working with Incredible to provide open banking payments that are more responsive to customers’ needs.”