Glasgow fintech Nude is on a mission to get young people saving for their first home.
Using innovative technology, the company’s app can track spending habits, informing users how to save towards the goal of home ownership.
Kate McKay, head of legal for the startup, which raised £3.54m in a crowdfunder in 2020, said: “We know young people face huge financial pressures, and we saw this huge gap for a banking product that could give them much greater insight into the state of their finances.
“We were seeing that some people would be committed enough to do spreadsheet analysis on their finances but most don’t have the time.
Our app does all of that for you, allowing you to specify the savings target, and the time it will take to get there, keeping you up-to-date with regular notifications.”
The platform, which works on open banking standards and connects to big banks such as Barclays and Virgin Money, is also addressing a market need.
According to the Institute for Fiscal Studies there has been a substantial fall in home ownership among young adults.
In 2017, 35 per cent of 25 to 34-year-olds were homeowners, down from 55 per cent in 1997.
Nude’s app, which started in 2019, works by placing the amount saved each month into high-yield cash or stocks and shares ISAs.
And it’s already helping people get on the property ladder. McKay said: “We’re seeing some great results come through already, with some really positive overall growth trends.”