Open banking platform TrueLayer has partnered with credit management app Incredible to offer variable recurring payments (VRPs) to borrowers.
This will allow Incredible’s customers to automate their repayment strategy and take a longer-term approach to reducing their borrowing.
Nick Tucker, head of financial services at TrueLayer, described VRPs as “a new form of open banking-enabled technology” which represent a “step change in debt management, allowing users to set up secure and flexible repayment plans with greater ease and convenience.”
Incredible added that the use of VRPs could add value to the platform by enabling customer to use roundups and sweeping payments in the context of reducing the overall cost of customers’ borrowing.
“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 by-product of a system that does very little to optimise for financial resilience,” said Yaseen Rostom, chief executive and co-founder at Incredible.
“Incredible is pioneering a new use case for VRPs, facilitating better credit repayments to improve financial wellbeing.
“We’re excited to work with Truelayer to bring us closer to fulfilling the promise of open finance; making money work for people.”