Haboo Money transforms loan repayment with a digital wallet
Haboo Money has teamed up with Griffin Bank to simplify loan repayment. The partners aim to streamline the process for borrowers and financial institutions alike.
The fintech startup has developed an innovative digital wallet to help optimise spending during loan repayment. Borrowers get a handy tool for the flexible management of their debt. What makes the Haboo solution unique is that it benefits both parties. Borrowers enjoy the following benefits:
– the possibility to replace direct mandatory transactions with variable recurring payments;
– the wallet incentivises users to overpayments that accumulate for future payments;
– the tool allows the creation of funds for emergencies or for quick loan repayments.
Personalised support accompanies the entire repayment process for each user. The wallet offers behavioural incentives to motivate consumers to take action.
Lenders also receive a number of benefits from using the wallet:
– it improves lending efficiency by reducing the number of missed payments.
– the risk of problem loans is lower.
– collection costs are reduced.
the workload of collection and delinquency specialists is smaller.
the lender gains valuable insights into customer behaviour.
The repayment procedure is subject to the norms of consumer protection legislation.
Solution relevance
Startup co-founder Hannah Baynham says that the lending sector is facing a rapid rise in bad loans. Consumer debt is increasing, putting pressure on financial institutions and consumers alike. In search of better terms, people are resorting to unsecured loans, which is not always effective.
With the support of UK-based Griffin Bank, Haboo Money has decided to address the current situation. Fintech makes it possible to present a product that will benefit all parties. The startup has developed a multifunctional digital wallet, while Griffin has taken over the banking support.
Haboo’s digital wallet allows borrowers to:
– better repayment control;
– develop financial discipline through regular and consistent payments;
– form healthy habits in managing personal finances.
In turn, lenders can provide support to their clients. This improves engagement levels and reduces the risk of delinquency.
The solution also reduces borrowers’ stress levels. They feel more in control of their debt and more confident about repaying it. At the same time, the wallet offers a flexible approach without any rigid restrictions or pressure. Griffin provides the banking infrastructure that enables the digital wallet’s full capabilities to be utilised.
An initial trial of the product with a limited number of users has already been completed, and it is now ready for a wide launch. The developers also plan to expand its functionality over time by including new, useful tools.
