New subscription management app Little Birdie launches to help consumers better manage their recurring payments amid the cost of living crisis.
Little Birdie aims to support people across the UK who’re questioning the subscriptions they signed up for during the pandemic.
The subscription and bill management app uses open banking, data analysis, and artificial and human intelligence to deliver personalised spending insights.
The app’s Click to Cancel feature will allow users to cancel or switch contracts within the app. The feature will initially be available for 400 providers, including Spotify and Disney+. More providers are expected to be onboarded in the coming months.
Users will receive reminders when payments are due or when a free trial is coming to an end. The app also alerts price rises and provides price comparisons.
The pandemic accelerated the growth of free trial and new subscription adoption for several reasons including convenience, entertainment and reduced spending elsewhere.
Two-thirds of UK households have regular subscriptions, with an average of seven contracts per household.
The launch is a reaction to fears that subscriptions are increasing debt as households struggle with soaring costs.
The company’s survey of 18 to 34-year-olds uncovered how 32 per cent are regretting certain subscriptions. Forty-one per cent worry they are being led into the red.
With almost 10 per cent inflation, soaring interest rates and the cost of living, 63 per cent are actively trying to cut down on spending.
However, 41 per cent avoid cancelling or switching their paid subscriptions due to hidden costs.
Just under a quarter find it too difficult to cancel subscriptions and recurring payments due to the lengthy process.
Oversubscribed
The company describes a clear desire from consumers for greater guidance and transparency surrounding subscriptions and recurring payments.
Two-thirds say that it should be easier to break a contract if someone is struggling financially. And eight in 10 say there should be more reminders when the free subscription trial period is ending.
The app’s co-founder, Martin Bould, recognises the impact of recurring payment mismanagement on the current economic crisis.
“Budgets are at breaking point, and many are at risk of falling into debt due to the current climate,” he says.
While noting the convenience of subscription services, Bould says that they can be “challenging to monitor” and “complicated.”
He says that subscriptions can be difficult to cancel and that companies “don’t often make the cancellation process easy.”
Bould explains how the app’s launch seeks to “help people take control of their regular bills and subscriptions.”
“Users can connect via open banking to upload all their regular payments into one place or opt to add some or all of these payments manually,” he continues.
“The app offers subscription and bill management tools with price comparison and switching capability – something people need now more than ever.”
