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Chetwood partners with Mumsnet to launch family-focused products

Tuesday 4 October 2022 12:43 CET | News

Chetwood Financial, a UK-based digital bank, has partnered with parenting forum Mumsnet to launch a new family-focused financial services proposition.

Under the new partnership with Mumsnet, Chetwood will provide the regulation, technology, and infrastructure to launch innovative products that solve some of the financial dilemmas that parents, particularly mothers, face in the current economic landscape.

Parents face significant financial pressures, whether it’s a dip in income while on maternity leave, the rising cost of childcare, or a sharp uptick in the cost of living. Chetwood is working with Mumsnet members to co-create products and tools that work to relieve some of the challenges they face.

Unlike traditional banks, Chetwood is focused on serving distinct customer segments that are currently underserved by the market, with products designed specifically for their needs. They do this through consumer led brands, using a business model that is focused on keeping costs low, with state-of-the-art, cloud-based technology, and digital distribution partners. Chetwood’s Banking as-a-Service (BaaS) provides the banking licence, the balance sheet, and the technology to enable both new entrants to financial services and existing players to expand their propositions, offering white-labelled products with no upfront investment.

Chetwood and Yobota

The recent acquisition of core banking provider Yobota means the company has greater opportunities to support financial offerings through its BaaS model.

Chetwood Financial, a digital bank, partners with parenting forum Mumsnet to launch a new family-focused financial services proposition.

Following the acquisition, Yobota continues to deliver the core banking system (CBS), on which businesses can run financial services whilst leveraging Chetwood’s banking licence. Non-financial services businesses will be able to embed finance without needing to develop credit and pricing capabilities, alongside proposition, decisioning, modelling, and operations as optional services. This allows businesses to launch financial services products with reportedly minimal upfront investment and low running costs due to their cloud-based technology.

Some of Yobota’s most popular products are customisable lending and account solutions. As part of the Chetwood’s multi-brand strategy, Yobota continues to operate as a separate brand under the Chetwood umbrella, with Yobota’s current partners and customers unaffected by the transition. They maintain strict client confidentiality, with sensitive information and IP protected.

Financial stress for parents

The effects of financial issues have a high impact on parenting. The presence or absence of funds can become one of the major determinants of child-rearing success. Among other factors, too much or too little money creates behavioural extremes and poor quality of childhood experience.

Financial sufficiency or insufficiency can harbour potential problems that when neglected, may become detrimental. Effects such as easier provision both for physical and emotional needs with sufficient funds; while lack of finances may produce ineffective nurturing and inability to meet basic needs. Incompetence in properly managing finances as parents may also lead children to grow as either too deprived or too comfortable adults.

Childcare is the most common and one of the biggest expenditures for parents. In the UK, the average cost of sending a child under the age of two to nursery is GBP 137.69 a week part-time or GBP 263.81 a week full-time.


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Keywords: partnership, product launch, financial services, digital banking, regulation
Categories: Banking & Fintech
Companies: Chetwood Financial, Mumsnet
Countries: United Kingdom
This article is part of category

Banking & Fintech

Chetwood Financial

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Mumsnet

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