Credit app TotallyMoney has unveiled a new affordability insights feature which is intended to help underserved individuals in the UK get access to mainstream credit.
TotallyMoney’s latest feature is its third Open Banking use case and works by connecting a bank account via the TotallyMoney app to give customers live insights into what is impacting their affordability, both positively and negatively.
The insights are broken down into categories, including buy now, pay later and gambling activity, as well as spending and savings, and will provide customers with a personalised affordability plan.
Alastair Douglas, chief executive officer of TotallyMoney, wrote in an article on LinkedIn: “The new affordability insights feature gives customers a better understanding of where they stand, so they can improve their chances of being accepted for better credit products.”
He added: “Open Banking data is a considerable improvement on the traditional credit reporting system, and the new affordability insights feature marks another way in which we’re putting customers in control of their own data.
“It follows the launch of the Monitor tool, and Open Banking data decision making we’re enabling for our lending partners.”
TotallyMoney estimates there are 23 million individuals “locked out” of mainstream lending, with this number having risen in the past two years.
In 2022, TotallyMoney published a whitepaper with PwC which found that 20.2 million UK adults were unable to access mainstream credit products and services.
Last month, TotallyMoney’s latest calculations found that this has continued to grow by 3.14 million in just two years, to reach 23.34 million, accounting for 45% of the UK adult population.
Douglas cited the cost of living crisis, consumer credit crunch, and the banking system’s “inability to keep up with changes in society” as the main drivers behind this growth.
He added: “And while reversing this trend won’t be easy, we believe there are solutions to help people get back on track, and the economy moving forward. Key to this is using Open Data in a way which works for borrowers and banks, giving relevant parties access to more accurate and meaningful information.”
Last year, TotallyMoney launched an Open Banking-powered tool designed to help its more than five million UK customers protect and build their credit score, developed in partnership with data intelligence platform Bud.
