Sweet results for Money Sweetspot

A new ImpactLab report has forecast the sweet results that a unique New Zealand social enterprise could be set to reproduce through their human-centred approach to debt and financial education.

The first of its kind worldwide, Money Sweetspot marry together a financial ‘reset’ for customers by both consolidating debt at lower interest rates and connecting them to financial education.

According to ImpactLab analysis, Money Sweetspot are estimated to create over $6M of social value across Aotearoa, with a social return of $7 for every $1 invested in its work. The programme is expected to significantly support over 3,000 New Zealanders over the next year .

“These metrics demonstrate how an empathetic approach to debt consolidation and financial education can make a lasting impact on peoples’ lives,” ImpactLab CEO Maria English says.“ImpactLab measured multiple outcomes within Money Sweetspot’s programme that look to prioritise customer wellbeing, with it found to improve mental health while simultaneously reducing risky behaviour, emergency benefits and debt.”

With a focus on helping people to navigate the financial game better, co-founder and CEO Sasha Lockley is dedicated to ensuring that every Kiwi repaying debt is met with support and rewards, rather than unfair interest rates and the threat of harsh penalties.

“Standard industry practice can see many businesses keeping their customers in debt, which in our eyes, is plain stupid,” Lockley says.“Our goal is to lose our customers as quickly as possible, so that they can move on with their lives.”

A no-nonsense, mission-driven organisation, debt repayments through Money Sweetspot tend to be significantly lower than those required by other lenders, with no monthly account fees and an average interest rate of 13.5 per cent, rather than 30-50 per cent.

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“Currently, New Zealand operates under a financial system that sometimes judges people for what life inherently is: unpredictable,” Lockley says. “As a result, the underbanked and underserved pay more for their debt, particularly in the current environment.”

Lockley is also a passionate advocate for forming adult relationships with customers, rather than a parent-child one that punishes or patronises the customer.

“We are firm believers of the fact that people are good, but bad things can happen to any of us. It is madness to treat customers as if they are just ‘bad with money’, and not as though they are aneveryday person simply trying to navigate life.”

Unfortunately, by primarily using tools like credit scores financial organisations can struggle to help people through common life events such as divorce, redundancy, relocation, or illness; of which often see people juggling and struggling their finances and spiralling into distress. Credit scores are only one part of the picture.” Alternatively, ImpactLab measured multiple outcomes within Money Sweetspot’s programme that look to prioritise customer wellbeing, with it found to improve mental health while simultaneously reducing risky behaviour, emergency benefits and debt.

A case that illustrates the impacts of Money Sweetspot’s approach involves a customer struggling to stay on top of her finances following the recent death of her husband. Trying her best to manage her grief on top of the multiple debts that the couple had accumulated over the years, she took on another two jobs in an attempt to stay afloat. However, this was both a challenging and unsustainable practice to uphold. Upon receiving approval from Money Sweetspot for a financial reset consolidation loan, she felt as though she could finally breathe again. Reducing her interest and saving $237 per month on herdebt repayments allowed her to protect her livelihood and start to rebuild her life.

For Lockley, it is these testimonies from customers that best demonstrate why we need to compel change in a financial system that continues to fail people nationwide.

“People are not data points, and they deserve a financial lending system that better recognises this distinction. We are honoured to assist in helping customers to repay their debt, but that is only one, small part of their story.”

ENDS

For more information or to arrange an interview, contact:

Annabella Gamboni: ag@manacommunications.com | 0204 010 1702

Alana Ward: aw@manacommunications.com | 021 024 02241

About ImpactLab:

ImpactLab was established in 2018, with a shared commitment to improving social impact for thebenefit of all New Zealanders. They were created to empower funders and service providers to make informed, data driven decisions – and they know that to make better decisions for Aotearoa’s communities, that it’s crucial to consider both the human stories and the hard facts that support them. The team at ImpactLab combine powerful analytics, the best scientific evidence, and qualitative data from our clients about their communities to help people do good, better.

About Money Sweetspot:

Money Sweetspot is a social lender focussed on working alongside everyday Kiwis (of all income levels) to put them back in charge of their finances. Money Sweetspot offers financial reset debt consolidations of up to $40,000 at interest rates that may be significantly lower than their existing loans. As a social lender Money Sweetspot counts losing customers as a success and by paying ontime and avoiding new debt their customers can donate to charities they care about. By engaging infinancial education and information their customers earn Sweetspot points that can be redeemed for additional amounts off their loan or put into their savings account. ‍

Real people. Real life. Out of debt. On with living.

www.moneysweetspot.co.nz