Monzo is partnering with the UK Financial Capability Lab to develop new technologies to help customers regain control of their finances.

The collaboration will see the digital challenger bank work alongside the Money Advice Service and the Behavioural Insights Team to make use of financial data on spending and saving that can help customers limit their outgoings.

The Financial Capability Lab was created in 2016 as a partnership between the Money Advice Service, the Behavioural Insights Team and research firm Ipsos MORI. It uses technological research and policy insights to test behaviourally informed ideas to help consumers with money management challenges.

As part of the deal, Monzo will develop new card controls that sets limits on discretionary spending by creating ‘friction’ points for the consumer when they exceed a pre-arranged spending or savings goal.

Features currently being drawn up include letting customers set and work towards goals or nominate a trusted person who can be notified and asked to approve certain transactions. Monzo will build on existing features which allow customers to freeze cards from with their mobile app or block gambling spending accounts.

Sarah Porretta, UK financial capability director from the Money Advice Service, commented: “With over a third of adults not feeling confident managing their money, and an additional 12.9 million people without savings to fall back on, it’s vital that support services and businesses work together to build up the financial capability of consumers.”

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