Plum secures FCA approval to deliver Targeted Support

Plum has become one of the first fintechs to receive FCA authorization for a new model of financial guidance called 'Targeted Support.' For merchants and platform operators, this signals a major shift in how financial products like investments and credit can be presented to consumers. Traditionally, firms had to choose between offering generic information or expensive, regulated financial advice. This new middle ground allows apps to use customer data to suggest specific financial actions that are appropriate for people in similar circumstances. For businesses integrated with financing platforms, this means the 'black box' of financial guidance is opening up. Platforms will soon be able to nudge customers toward specific savings or credit products with more precision and less regulatory risk. If you offer financing at the point of sale, keep an eye on how these 'Targeted Support' models improve conversion. They aim to make consumers feel more confident in their financial choices by providing suggestions tailored to their actual financial standing. This approval sets a precedent for how smart money apps will transition from simple tools to active financial guides for your customers.

Source: Finextra — Lending

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