Fintech startup Tully has launched to help solve the UK’s consumer debt problem.

The startup is free for consumers and created to improve financial education and make it easier for people to manage their money and repay debts faster.

The start-up’s innovative approach to money management has caught the attention of like-minded industry names such as Nationwide.

Currently, the debt of an average UK household has reached a record £15,400, amounting to a combined total of £482bn across the UK. Thousands of people struggle with debt every year and it is estimated that the accompanying physical and mental health impacts resulting from debt stress, costs UK employers as much as £51 billion per annum. Tully aims to alleviate this.

Tully uses Open Banking technology to give people a fast, accurate, realistic picture of their financial position in minutes – all done online and completely free.

Every user receives a personalised financial plan, tailored advice and for those in more severe difficulty, the revolutionary option to choose a flexible debt repayment plan that adjusts to the user’s financial situation every month.

By factoring in variable incomes, Tully helps users to pay back only what they can afford each month as a percentage of disposable income.

Tully CEO Stuart Bungay explains exclusively to UKTN: “We started Tully because people in the UK need help with their money. But asking for help remains taboo, even when most people have never been taught how best to manage their money.

“At Tully we’re looking to improve financial capability in the UK and remove the stigma associated with seeking financial advice.”

“Tully has already started to help the 6 million people who need debt advice each year, using Open Banking data, Credit data and conversational AI to build fast, accurate, personalised online budgets that get people the right debt advice faster. 

“Our key goal is shifting the point that people seek financial support, to before they need formal debt advice. 

“There are 16 million people in the UK with less than £100 in savings and employment is changing with the growth of the gig economy and zero hours contracts. Income is fluctuating but expenses are fixed which puts 20 million people one small financial shock away from trouble. 

“It is this fundamental lack of financial resilience that we are seeking to solve with Tully.”

Tully’s innovative use of Open Banking is also being supported by Nationwide as part of their ‘Open Banking for Good’ initiative. Nationwide Chief Executive Joe Garner says: “While others may be looking at Open Banking through a commercial lens, Open Banking for Good is driven by our social purpose.

“The programme will see us partner with some of the UK’s smartest Fintechs, debt charities and academics to use this revolutionary new technology to support people facing financial challenges.

“Our seven chosen Fintech applicants will have access to vital insights, funding, and data to help them really make a difference. This is a great example of working across businesses, charities and government to make a positive difference in society.”