Updraft's noble mission: Save customers from debt trap

British fintech firm Updraft helps people come out of debt trap following reckless use of credit cards, overdrafts and BPNL loans

London-based fintech disruptor Updraft offers a mobile solution that enables people to break away from expensive debt, whether on account of credit cards, overdrafts or buy-now, pay-later (BPNL) loans. It offers a financial planning and disruption solution, unique in unsecured lending markets. The firm recently won the best digital initiative award in the lending category at the Banking Tech Awards instituted by FinTech Futures.

Updraft claims it is on a mission to help people break up with their credit cards and better manage their money.

Its solution is designed to change habits, with purpose-built lending products and contextual coaching and conversations.

The solution is in fact a personal finance ecosystem within a mobile native experience. There is a Credit Score & Report that helps users understand what affects their financial positions and gives suggestions to improve it. The Report gives access to high quality low-cost credit products with Updraft Credit.

USE OF OPEN BANKING

The Updraft app connects to the customers' existing bank accounts and cards using Open Banking APIs and then uses AI to send the customers alerts when one is at risk of overspending on his or her account. If there is an overspend, instead of the customer's bank automatically giving an overdraft, Updraft intervenes to replace the overdraft with a low interest loan. This means the customer has access to the money he needs without expensive overdraft fees.