Haboo partners with Griffin to launch flexible repay wallet

Haboo money has entered into a partnership with Griffin to offer a save-as-you-repay wallet designed to provide borrowers with more flexibility and support in managing loan repayments.

Under the new collaboration, Haboo money will utilise Griffin's banking infrastructure to deliver a repayment platform aimed at addressing challenges faced by both borrowers and lenders in the current consumer credit environment.

Haboo's repayment experience is structured to move beyond traditional direct debits by implementing variable recurring payments, which the company states can give borrowers more control. The platform encourages responsible overpayment, allowing customers to put aside extra funds to either build a financial buffer or pay down debts more quickly.

The partnership is intended to tackle key pain points in lending. According to Haboo Money, their model incorporates behavioural nudges and personalised support to incentivise positive repayment behaviours and engagement between customers and their debts.

The platform also provides tools intended to help customers build better financial habits through proactive communication and reminders.

For lenders, Haboo claims these features will lead to benefits such as stronger loan performance, fewer missed payments, and potentially lower costs and operational burdens for collections and arrears management.

The platform also aims to provide enhanced customer insights and assist lenders in meeting compliance requirements related to delivering favourable outcomes for borrowers.

"The consumer debt crisis is an escalating challenge for both borrowers and lenders, as growing numbers of people rely on unsecured credit to make ends meet. For the first time, new financial technologies make it possible to address this issue in a way that works for everyone involved,"

"By partnering with a bank like Griffin, we're able to empower borrowers to take control of their repayments and build healthier financial habits - while giving lenders smarter, more sustainable ways to support their customers." Hannah Baynham, Co-founder of Haboo Money in describing the broader context motivating the partnership.

The partnership also aligns with Griffin's strategy to provide banking infrastructure that supports fintech solutions.

"What haboo is doing to improve lending experiences for everyday people is truly inspiring. They are putting flexibility and control back into borrowers' hands while helping lenders build healthier loan books. We're excited to provide the banking infrastructure that enables this innovative repayment solution and look forward to supporting their growth." David Jarvis, CEO and Co-founder at Griffin said.

Haboo intends to provide its service to credit providers who wish to offer flexible, tailored repayment plans responsive to each borrower's financial situation.

The platform's approach integrates adaptive payment schedules and uses digital technology to provide insight-driven journeys with the aim of supporting higher recovery rates for lenders and fairer, more manageable plans for customers.

According to the companies, the save-as-you-repay wallet and repayment journey are expected to assist lenders in fulfilling regulatory obligations, including those under consumer duty requirements, by supporting good customer outcomes and responsible borrowing behaviours.

Griffin is regulated by the Prudential Regulation Authority and the Financial Conduct Authority, and aims to support clients in embedding banking capabilities directly into their own technology offerings.