The partnership aims to significantly reduce friction that is usually associated with debt payments. By using TrueLayer’s VRP process, customers using Incredible will be able to set up automated payments directly from their bank accounts, which is a more feasible, faster, and secure alternative to traditional direct debt payments. At the same time, VRPs settle immediately and can be verified with one-time authentication, which makes them a better alternative.
By integrating TrueLayer’s process and through the help of Open Banking data APIs, Incredible will consolidate its customers’ account information to deliver one clear and comprehensive dashboard where they can see, track, forecast, or repay their borrowings. The partnership between the two companies also aims to help British people take control over their finances and establish a long-term strategic view, as the cost of living crisis continues to deepen across the country.
With VRPs, clients using Incredible will be able to set the app for automatic payments between their bank accounts and their Incredible account. The process is known as ‘sweeping’ and allows customers to automate their repayment strategy to improve their finance management and become debt-free sooner.
The energy crisis, inflation spikes, and an overall troubling political background have compiled the premises of an international economic turmoil, with many IT giants announcing layoffs, national banks increasing their reference interest rates, and millions struggling to support higher costs of living.
The implementation of VPRs comes at a time when UK customers face similar problems. Amid the current cost of living crisis, the Bank of England announced that UK individuals borrowed GBP 1.5 billion in consumer credit in November 2022 alone, with credit card borrowing accounting for 80% of the amount. At the same time, nearly 2 million households missed a scheduled debt repayment at the end of 2022, suggesting a decreased purchasing power and a struggle to make ends meet.
VRPs are more flexible and allows Incredible to deliver more value to the credit repayment space, with the help of common features, including roundups. Moreover, sweeping payments allows the automatic movement of money, in variable amounts, between customers’ accounts, helping them achieve a more flexible and intuitive approach towards repaying loans or credits.
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