Every Wednesday, we delve into the latest fintech updates from across the UK. This week brings updates from SmartSave, Moneyhub, PayPlan, Littlepay, and Napier.
High-street banks leave UK adults short-changed
Two-thirds (65 per cent) of UK adults feel that high-street banks have prioritised making profits over passing on higher interest rates to customers in the past 12 months; according to a new survey commissioned by SmartSave, run by Chetwood Financial.
Meanwhile, 59 per cent say that their income has decreased in real terms as inflation has exceeded the interest rates offered on their savings. Due to the cost-of-living crisis, 28 per cent of those surveyed say they have stopped saving money entirely.
Andy Mielczarek, founder and CEO of SmartSave, commented: “It is clear from this data that there is a disconnect between savers and major banks, with a sense that the high street needs to do more to support them through high inflation and cost-of-living pressures.
“The hikes in the base rate over recent months are a clear indicator that all savings product providers need to rise to the challenge of protecting their customers’ financial health, and clearly, consumers feel that the high street has fallen short.”
Fintech could be helping consumers more
Around 29 per cent of UK consumers who missed a payment or went into their overdraft, did so despite having funds in another account; new research from Moneyhub’s Payments Division has revealed.
Of those, 42 per cent said that having automatic payments that would move money if one account didn’t have enough would help them avoid missing a payment or going into their overdraft. A further 38 per cent said receiving a notification of a payment due to be collected would similarly help – highlighting the positive impact technology such as smart nudges and open banking payments can have.
Mark Munson, head of payments at Moneyhub explains why these newer payment methods might help alleviate pain points for UK consumers and help deliver a better financial wellbeing: “Direct debits will be 60 years old in 2024, however today customers demand greater flexibility for bill payments that match their circumstances.
“New ‘Smart Payment’ plans facilitated by Moneyhub’s Open Banking Payments division will allow businesses to offer customers a far greater choice of payment schedules – helping customers to stay on track and reduce bill anxiety.”
PayPlan aims to reduce gambling stigma
PayPlan, one of the largest UK debt advice providers, is supporting a national public health campaign to reduce the stigma around gambling harms. The nationwide initiative, by charity GambleAware, revealed that 75 per cent of people who had experienced gambling problems felt they couldn’t open up to loved ones, with stigma being the most significant barrier preventing people from opening up.
Results also showed that 62 per cent agree people negatively judge those experiencing gambling harms, whilst 56 per cent agree that it is important to challenge the stigma around gambling harms.
Emma Gibbons, vulnerability lead at PayPlan, said: “It’s important that we increase conversations within society around gambling harm and make sure that people have a better perception of those experiencing gamble-related debt.
“Through our relationship with GamCare, we’ve been able to develop appropriate pathways into debt advice and regularly carry out training to the wider financial services sector to help them ensure they’re up to date with the latest information and advice.”
Google Pay enhances Go-Ahead customer experiences
Google, Littlepay and Go-Ahead have launched an industry-first initiative to provide enhanced passenger experiences when using Google Pay. Passengers can now opt-in to a new service bringing Go-Ahead’s brand into the Google Wallet for the first time and providing passengers with a wealth of new and useful information.
Passengers can see directly on their phone the travel and payment history and also see progress towards the next fare cap and the savings being made.
Paul Griffin, head of commercial at Littlepay, added: “Being able to communicate in real-time with passengers as part of the pay-as-you-go (PAYG) experience is a huge leap forward.
“This project will benefit riders, giving them visibility of savings made through PAYG. It also gives operators a pathway to develop relationships with PAYG passengers and create a real sense of membership and valued loyalty.”
Napier and KYC portal launch compliance solution
Napier, the London-based intelligent compliance technology company, and KYC Portal, the client lifecycle management platform are joining forces to provide financial institutions an end-to-end compliance solution.
Napier’s integration with KYCP will feed updated customer data to Napier’s rules engine, which, based on real-time alerts, will send notifications to KYCP if any rules are triggered and update transaction-related data in KYCP in real-time. This will also enable for real-time automation of risk-driven events in the lifecycle of a counterparty in KYCP.
Kristoff Zammit Ciantar, founder and CEO at KYC Portal, explained: “KYC is the ability to know your customer, their activity, and whether it poses risk to your organisation. Knowledge of the entire customer lifecycle, from onboarding and beyond, empowers compliance teams to have a greater view on customer risk.”