TSB has partnered with start-up LOQBOX to provide customers with alternative options to build their credit history by saving rather than spending .
Customers will be able to select a certain amount each month – between £20 to £500 – that they want to save over the course of a year.
They can then purchase a LOQBOX digital savings voucher worth 12 times the amount that they commit to saving each month.
Instead of buying the voucher outright, the customer uses 12-month, interest-free finance to purchase it.
The monthly payments for LOQBOX – which are equal to the monthly savings commitment – are reported to the three main UK credit reference agencies, whereby lenders can see that the customer is a responsible borrower who can manage credit.
At the end of the 12-month period, the customer receives their lump sum of savings and has built up a strong credit history.
Jatin Patel, product director at TSB, said: “At TSB, we're always looking at solutions that help bring more competition to UK banking and ultimately make banking better for all UK consumers, so when [we were presented with] what LOQBOX had to offer, we knew we wanted to be a part of it.
“LOQBOX's solution will improve financial inclusion for a number of people.”
SIGN UP TO OUR NEWSLETTER TO RECEIVE MORE NEWS LIKE THIS STORY
Monese urges holidaymakers to shop around for their bank to save money abroad
Brits travelling abroad have been encouraged to save money by shopping around for bank accounts...
Tandem introduces healthy balance feature
Digital bank Tandem has announced the launch of a new healthy balance notification feature on its banking app...
The Access Bank UK joins Bacs
The Access Bank UK has been announced as the latest brand to join Bacs Payment Schemes Limited (Bacs)...
Nearly 75,000 SMEs supported through BBB programmes
The British Business Bank (BBB) has reported that the total stock of finance provided through its programmes in the last financial year rose by 33% to £12.25bn...
Close Brothers’ banking division reports 6.6% loan book growth
Close Brothers Group PLC has revealed that its banking division has seen a 6.6% growth in its loan book in the 11 months to 30th June 2018...
Leeds introduces two-year fixed rate BTL product
Leeds Building Society has launched a two-year fixed rate buy-to-let (BTL) mortgage product as part of a wider refresh of its 70% LTV BTL range...
Just 20% of Brits would opt for a challenger bank
Only 20% of UK residents would opt for a challenger bank if they were opening a new account today, according to research from Equifax...
Santander to form digital investment banking team
Banco Santander has announced that a new digital investment banking team will be formed within Santander Corporate & Investment Banking...
Metro Bank introduces developer portal
Metro Bank has launched a new developer portal for FCA-registered third parties wishing to build services on top of its APIs...
Wesleyan Bank appoints new head
Wesleyan Bank has appointed David Brownbill (pictured above) as its new head of indirect sales...
Arbuthnot announces profit surge
Arbuthnot Banking Group has reported a half-yearly profit before tax of £3.5m for the six months to 30th June 2018, up from the £2.5m recorded during the same period last year...