Debt is pretty familiar to most people under the age of 35.
Student loans are just the start of a relationship that develops into overdrafts, credit cards, personal loans and if you are really lucky, a mortgage.
They might not be good at staying out of debt, but millennials are very good at doing everything online.
So a money management app that helps young people reduce their debt would seem to be fulfilling a market need.
By connecting to users’ bank accounts and analysing their income, outgoings and spending history, Pariti says it will help millennials save faster, spend more wisely and build a better understanding of their own financial position.
And with the new Zopa partnership, Pariti will now also be able to help users start to clear their existing debts. With no impact on their credit score, Pariti users will be able to discover if they could be paying less for their debt, then apply directly for a Zopa debt consolidation loan through the app.
Pariti founder, Matthew Ford, said: “The market desperately needs more transparent and consumer-orientated financial products, and we simply don’t see enough of this coming from the banks. The recent CMA investigation into retail banking highlighted the need for technology disruption and the benefits of open banking; this partnership with Zopa is a great example of how such a business model can work to really help benefit the consumer.”
Zopa’s CEO, Jaidev Janardana, added: “Our own research shows that many consumers could save money by swapping out expensive credit card debt for a lower-priced Zopa loan, and by working with Pariti we are able to offer this service to even more consumers. We are very excited to be working alongside this likeminded financial disruptor to build the new generation of fairer, more transparent financial services.”