News Update: Opportunities of Open Finance, Universal Credit and Advancements in Payments Tech

This episode covers the stories in the credit industry that caught our eye, including overdrafts, interest charges on personal loans, universal credit, FinTech, buy now pay later, and open finance.

We highlight the high number of people in the UK who are overdrawn and the expensive nature of overdrafts. We also discusses the impact of interest charges on personal loans and the potential benefits of the new universal credit system.

In the FinTech space, the episode explores tap-to-pay solutions, buy now pay later services, and technology innovations in payments. Lastly, it covers the opportunities and benefits of open finance for individuals and small businesses.

Takeaways

Many people in the UK are overdrawn and overdrafts can be an expensive way to borrow.

Interest charges on personal loans can add up significantly, especially for those with lower credit scores.

The new universal credit system in the UK is expected to benefit workers who rent.

FinTech innovations include tap-to-pay solutions and buy now pay later services.

Technology advancements in payments can improve the payment process and help small businesses with late payments.

Open finance has the potential to improve access to finance for individuals and small businesses.

Sound Bites

"One in five people in the UK are overdrawn by an average of £697."

"A lower credit score could add £2,499 worth of interest on a £3,000 loan."

"UK workers who rent are set to be almost £4,000 a year better off with the new universal credit system."

Sources

https://www.credit-connect.co.uk/news/consumer-spend-1-4bn-on-bank-overdraft-interest-each-year/

https://businessplus.ie/tech/payments-uk/

https://uk.finance.yahoo.com/news/universal-credit-change-money-050028301.html

https://cfit.org.uk/wp-content/uploads/2024/02/CFIT-Open-Finance-Blueprint.pdf