Debt repayment platform Haboo Money prepares for 2025 launch
UK-based start-up Haboo Money is preparing to introduce a new service that will assist borrowers in making punctual debt and loan repayments, with a go-live scheduled for Q1 2025.
UK start-up Haboo Money prepares for launch
The proposition has been designed to integrate with lending platforms’ financial well-being and vulnerability offerings and enable their customers to “make repayments in a much more personalised and dynamic way”, co-founder Hannah Baynham tells FinTech Futures.
Baynham explains that the B2B2C service will leverage open banking to derive deeper insights into customers’ income patterns, before applying variable recurring payments (VRPs) to mimic those patterns within repayments.
“So if a customer gets paid a bonus or gets a pay rise, or for gig workers whose salary changes every week or every month, we can then reflect that in what they repay, ultimately helping them stay on top of their loan repayments,” Baynham says.
Haboo Money plans to access both technologies through agent partner agreements, with the identification of a relevant, regulated vendor forming a core component of its preparations ahead of a pre-launch, six-month pilot.
At launch, this remit will primarily apply to personal loans, however, Baynham discloses a desire to extend the service to larger sums, including mortgages and student loans, in the future.
Co-founder Rob Tyrrell adds that Haboo Money’s approach to repayments enables borrowers to offset the burden of monthly bulk repayments with micropayments in a way that “automates and takes the hassle away from staying on top of your finances so that the repayment happens in an intelligent way”.
He goes on to explain how the start-up’s ascent was inspired by the growing availability of consumer loans against a diminishing focus among lenders on effective repayment schemes.
“People’s rainy day funds have gone,” he states. “Yet it’s easier than ever to borrow. And the big companies and firms are pushing people to take money with no focus placed on paying it all back. And if you don’t, your financial prospects are hammered.”
“It just felt really wrong that the focus is on access and actually little attention is paid on how do you get it all back.”
