Zopa and ClearScore partner to tackle cost-of-living crisis

Zopa and ClearScore have joined forces in a cross-industry initiative to try to help strengthen consumer finances in the UK amid the rising cost-of-living crisis.

This is not the first time the digital bank and credit marketplace have come together, and this time the companies have set themselves a hefty goal.

The two fintechs are launching the ‘2025 Fintech Pledge’, aiming to drive 10 million actions that will help consumer finances by 2025.

What exactly does that mean? Well, Zopa and ClearScore have outlined four focus areas – savings, credit building, debt consolidation and utility marketplaces – and aim to see consumers improve their financial positions in these sectors by making “positive” changes.

In the case of savings, this could mean moving their deposits from low to high-interest yielding accounts, in turn making their savings “work harder”.

For credit building, this could look like using a tool to improve your credit score.

Each of these changes would count as one action in the goal of 10 million by 2025.

Zopa CEO Jaidev Janardana said that a variety of programmes and partnerships will be added as the scheme progress to help drive this aim.

“With the UK facing an unprecedented cost-of-living crisis, households need to use every tool at their disposal to build long-term financial resilience,” Janardana said.

“This industry pledge – the first of its kind – will unite a wide variety of companies in one goal of driving positive financial actions for millions living in the UK.”

The Pledge aims to unite the fintech industry and is targeting around 20 per cent of the UK, with more than 25 per cent of the population facing low levels of financial resilience. 

According to ClearScore Group co-founder and CEO Justin Basini, the fintech industry has a “key role to play” in building this financial resilience.

“This initiative can make a real difference to people’s lives,” Basini said.

“We can help people rethink their finances and take action to make themselves better off.”