Partner news

In June 2022, consumer credit provider NewDay became our first partner to adopt our new service, StepChange Direct, with incredibly encouraging results so far.

Designed to complement creditors’ digital collections strategies, StepChange Direct embeds into creditor websites and mobile apps, offering customers a free, short and easy to complete money health check at the most appropriate touchpoints in their journey. StepChange Direct then determines whether a customer would benefit from debt advice, budgeting support, or targeted help from their credit provider and directs them to this, significantly reducing customer dropouts.

NewDay initially agreed to trial the new approach through its Aqua brand and has since adopted the solution permanently and will extended this to the rest of its other well-known brands.

As of November 2022, the collaboration has seen 26% of customers referred to debt advice, complete the debt advice process, and receive a solution recommendation. This represents a significant increase compared to signposting using traditional methods, for example being given a telephone number or web address over the phone.

Ben Rogers, Head of Digital Collections at NewDay, said:

“Partnering with StepChange on this innovative new service has allowed our growing number of digital customers the opportunity to seamlessly begin their debt advice journey when needed, aligning with the already well established and successful telephony process.

“In an ever-evolving space, NewDay continues to pioneer digital solutions to support customers experiencing financial difficulty, and this new development is a welcome addition to our existing toolkit.

“The results StepChange are already seeing highlight the benefits of working together to improve customer experience. This quick, frictionless journey is proving a real success with customers needing third party support and we look forward to rolling this out across our wider portfolio and contact strategies in 2023.”

Our research shows that the way in which creditors communicate with their customers can make a massive difference to the actions that customers take, and that showing people a positive path forward makes them more likely to take action that will help their financial situation. The results from this pilot collaboration show how integrating a co-branded financial health check into creditors’ websites and apps can positively influence customers and encourage them to engage with support, of the right type and at the right time.

To find out more about our StepChange Direct tool, click here.

Our partnership will see ClearScore use their wealth of data to identify customers who are showing early signs of financial difficulty such as late or missed payments, offering them the chance to take our Money Health Check and access the right support for their individual circumstances.

As the cost of living crisis continues to put pressure on households across the UK, working collaboratively to support consumers is more important than ever before. ClearScore’s data shows that the number of people missing two or more credit cards payments has increased by 15% since February 2022, while our own research has shown that the same proportion have £20 or less left over each month after paying for essentials.  

As interest rate and inflation rises continue, this lack of financial resilience and increased reliance on borrowing is likely to cause a growing number of people to fall into problem debt later down the line. By working with ClearScore and harnessing their data to identify potential financial difficulty sooner, we can make sure users have access to the tools and resources they need to get on top of their finances before their situation spirals out of control.

Richard Lane, Director of External Affairs at StepChange said: “It’s a very worrying time for many households, millions of whom are one unexpected expense away from being plunged into debt. For some this will be temporary, but for those unable to keep up, there’s a very real danger of borrowing becoming unsustainable and turning into long term problem debt.

“Time and again our clients tell us they wish they’d reached out for help sooner. But the average StepChange client waits more than a year from the point at which their debt becomes unmanageable before they turn to us for support. Through our work with ClearScore we can begin to turn the tide and reach people earlier, catching consumers before they fall into real hardship and ensuring their path to becoming debt free is as quick as possible.”

Justin Basini, CEO and co-founder of The ClearScore Group, said: “We have insight into millions of consumer’s financial histories and understand the dangers of ignoring the warning signs of problem debt. Early intervention can have a huge impact and our aim with this partnership is to make it easy for people to reach out for help before their finances get out of control. We believe that getting people to take action and seek debt advice early on is the key to keep people moving forward.

“It is a common myth that taking debt advice will affect your credit score. This is simply not true, and we’re teaming up with StepChange to combat these misconceptions. The reality is that missed payments will show on your credit report and have an immediate impact on your score, so it pays to act fast if you feel your debts could become a problem. If you’ve got money worries, just know that you are not alone.”

To find out more about the Money Health Check, part of our StepChange Direct tool, click here.