Financial wellbeing app Wagestream adds credit to its list of offerings through Keebo acquisition

Keebo, a challenger credit card startup, was just acquired by a financial wellbeing app called Wagestream.

Wagestream’s acquisition of the new company will allow it to add credit access to its list of available offerings. Initially, the app was launched in 2018, and since then, it has worked with numerous employers such as Pizza Express, Asda, Next, and the NHS.

Through these collaborations, the app was able to provide three million users with the ability to easily and efficiently manage their budgeting. Users were also able to select their own pay cycle and build up a “rainy day” fund. The app also offered access to financial experts who acted as money coaches and who were available for a chat. By using it, users were even able to save money on their bills.

Wagestream to offer credit solutions

As mentioned, the Keebo acquisition will bring additional possibilities to the app’s offering, which will now be able to delve into credit. Keebo itself uses Open Banking data to assess the users’ broader financial behavior and approve or deny credit requests. This approach is considered to be more realistic, as it considers the users’ entire financial behavior, from their spending habits to how well they manage their funds and how they fulfill their financial responsibilities.

As such, it represents a clearer picture of the users’ financial responsibility and capability than a simple figure that a credit score has to offer.

This approach has found a high rate of approval in the UK, as over 25,000 British customers signed up to get their own Keebo card. The project offered other benefits, such as a points-based credit limit builder that allowed users to understand their credit better and build it up over time.

Keebo can help those locked out of fairer financial services due to low credit score

Thanks to the acquisition, the company’s entire product, all of its technology, and even its entire team — including the CEO and founder Michael Vanaselja — will join Wagesream Group. Wagestream’s own CEO, Peter Briffett, stated that there are many UK frontline workers who are locked out of fairer financial services because of the way the credit score system works.

Because of low credit scores, even those who are responsible with their finance and should be able to access more advanced financial opportunities simply cannot enjoy such benefits. Keebo’s approach will be a major game changer for people like that, and Briffett is very much aware of it.

“With a phenomenal team and a product that’s already making credit fair and accessible for underserved households, joining forces with Keebo is another great example of how we can make work more rewarding for frontline workers with workplace finance,” he said.