No one wants to be an ostrich

Managing our finances is complex. A lot more complex than societal norms would suggest. When someone falls into debt, we label them as being “bad with money”; “lacking self-control”. They “make bad decisions”. It is no wonder we tend to stick our head in the sand rather than face the music. What if instead of seeing debt as a reflection of someone’s identity, we looked at it as an expression of needs??

A recent survey revealed that nearly half of UK adults say they need “urgent help” in managing their day-to-day finances (Financial Times). Research from the Financial Conduct Authority (FCA) showed that 42% of people who were struggling financially and had ignored attempts by their lenders to get in contact about missed payments, had done so because they felt ashamed. Half of adults (49%) who reported that they were behind on energy bills between 14 September and 8 January 2023, reported high levels of anxiety (Office for National Statistics).

When it comes to managing our money, most of us need support. We want to feel confident, capable and empowered. So how do you design a credit building app to meet these needs?

The Keebo product team challenged themselves to find out.

Mispayments are a touchy subject. Too friendly a tone risks trivialising the issue. But forcing action with severity can lead to feelings of intimidation, causing undue panic and paralysing action. Rather than stew over the perfect tone, the team looked at the problem through a different lens. With open banking intelligence, we can preempt mispayments to get in touch with users long before the payment is missed and the customer enters arrears. As a result, they’re in a positive headspace that is open to getting ahead of the problem, which means we can offer a choice of options instead of presenting them with strict demands.

When it came to support, users preferred discussing mispayments via chat to voice conversation because it felt less personal. And if a phone conversation was indeed necessary, requesting a call back gave them a low barrier way to get in touch instead of having to pick up the phone themselves.?

The most surprising research finding was that screens indicating the minimum payment required tested better than did screens which showed the full amount to effectively clear debt. The smaller amount felt manageable, achievable and therefore actionable. Feeling capable is the first step in motivating positive change.?

Financial success is achievable when customers are set up for success. By prioritising our customer’s mental wellbeing, the Keebo product team was able to change behaviour in improving missed repayments.?