The news: UK-based neobank Monese has rolled out its Credit Builder product in its home market. The company said that “selected customers” are using it under an early access program, with broad availability slated for the coming months.
More on this: The company said its product is designed for individuals who are “credit invisible”—meaning those with scant to no credit histories.
How it works: A Monese spokesperson shared details for how Credit Builder works and how it also serves as a lending product:
The opportunity: An in-house credit-building product helps neobanks like Monese lay the groundwork for growing their own lending businesses based on access to their savings-account customers’ nascent repayment histories.
Monese’s internally run product is operating within a fairly uncrowded category. Its fellow UK challengers Starling and Revolut offer similar products, but do so through partnerships with CreditLadder, which tracks people’s rental repayments and reports them to credit agencies.
Neobanks that in-source credit building can build foundations for lending income and keep customers within their ecosystems. Products like these can also help challengers ward off the risk of commoditization.