#PFM / Updraft raises £16m to help Brits break up with their credit cards

Founded by former HSBC executive Aseem Munshi, Updraft has developed a part lending, part credit report, and part financial planning app.

The company says it wants to help customers get rid of spend-linked borrowings such as credit cards, overdrafts and increasingly, the buy now, pay later schemes often found on ecommerce sites.

Using open banking and credit report data, Updraft automatically builds a 360-degree picture of a user’s spending and borrowing and provides a series of interventions designed to lift the consumer back into the black.

Where expensive borrowing is detected, users can get ‘Updraft Credit’ to pay off these high-interest-rate debts with a lower-cost loan.