Banking platform for credit unions and community-based banks and lenders incuto has been selected by HM Treasury as the sole technology partner for the two-year pilot of its prize-linked savings scheme for credit unions.
Included as part of a package of measures in the Autumn Budget to support affordable credit and the credit union sector, HM Treasury has now announced 15 credit unions participating in the pilot, with Bradford-based incuto in place to deliver the scheme.
HM Treasury’s new savings scheme for credit unions offers cash prizes to savers.
It is designed to boost awareness and membership of credit unions.
incuto’s technology solution for credit unions enables these organisations to digitise their service and compete more effectively with banks and short-term, high-cost lenders.
It currently has 1.1 million accounts on its platform.
incuto CEO Andrew Rabbitt called credit unions a ethical alternative to short-term, high cost credit from payday lenders.
It has partnered with Starling Bank, Post Office, Telefonica, Mastercard and Experian to give people better access to free-to-use services.
“It has never been more important to raise awareness of credit unions, and take steps to counter the financial hardship and exclusion which can result for some people when turning to pay day lenders.”
“Our technology allows credit unions and other community-based banks and lenders to digitise the customer journey, as well as tackling financial exclusion via access to a bank account, sort code and debit card.
John Glen MP, Economic Secretary to the Treasury and City Minister is spearheading this prize-linked savings scheme for credit unions.
Glen said: “Connecting credit unions to innovative Fintech solutions will play an important role in raising awareness and driving membership of social and community lenders. I’m very pleased we’re partnering with incuto on our prize-linked savings scheme and I look forward to seeing the pilot up and running.”
incuto’s banking platform also offers credit unions a complete transactional system including branch interface, CRM, transaction engine for loans and savings, accounting, GL and treasury and document management.