How much do you earn a day? The last time we had a good a handle on this was when we had part time jobs and a physical pay packet bulging with notes and coins. As professional adults, wages flow into our banks in the background of our life, and disappear quickly every month with us barely noticing.
How much are you going to spend today? On your rent, council tax, TV subscriptions? We have no idea. Contactless cards, in-app payments, travel cards. The easier it is to spend, the more we do. And the quicker we hit our overdraft.
Overdrafts are designed to be ignored. Frictionless. You drift into overdraft earlier each month without noticing or caring. It doesn't require you to do anything. You pay it no mind. When your are paid, the bank quietly takes off the overdraft and its fees without you noticing. Convenient. Super easy. But building up to be a bigger and bigger debt for consumers.
Almost all the money earned by banks on current accounts come from overdraft users. Largely banking is free if you have money in the bank. The people that can least afford it have to pay the bill for everyone else. It’s a perverse quirk of the banking system that banks can’t solve without throwing away profits. Banks are not evil - they are structurally trapped.
A solution as easy and frictionless as a traditional bank overdraft - but without the fees and spiral into worsening debt. A solution that gently spirals you up and out.
That solution is Updraft.