NatWest has announced a significant change for customers using Direct Debits, introducing a more flexible repayment system through a partnership with East Lancashire Moneyline. The bank, which operates branches in Birmingham, is rolling out Variable Recurring Payments (VRP) to give borrowers greater control over their loan repayments.
How the New System Works
Variable Recurring Payments, enabled by Open Banking, allow customers to link their bank accounts securely and make repayments in amounts that suit their income patterns. Borrowers can pay more when they have extra funds or less during tighter financial periods, all managed through their own banking app.
The collaboration supports thousands of people across the UK who are living on low incomes or in vulnerable financial situations. Research shows that 87 per cent of users say VRP provides greater flexibility, and 84 per cent prefer it to traditional Direct Debits.
Supporting Vulnerable Customers
Moneyline serves customers typically excluded from mainstream credit, with an average credit score of just 180 and nearly half living in social housing. The organisation provides small, short-term loans and support services designed around the real-world circumstances of financially vulnerable households.
When Moneyline's previous VRP provider exited the market, NatWest's Open Banking business, Payit, worked quickly to deliver a replacement solution in record time, ensuring customers could continue using flexible repayment options without disruption.
Industry Reactions
James Hodgson, CEO of Payit, said: "Variable Recurring Payments are a key part of the future of Open Banking in the UK, with huge potential to improve how people manage money and make payments. NatWest is committed to developing payment solutions that are not only innovative, but inclusive and responsible."
Shiona Crichton, CEO of Moneyline, added: "This partnership with NatWest and Payit has enabled us to continue offering a repayment option that genuinely puts control back into our customers' hands. The speed and commitment shown by the Payit team minimised the time our customers lost access to a service that makes a real difference to their financial wellbeing."
John Lemonius, Head of Commercial at Payit by NatWest, said: "We've worked very closely with Moneyline to understand the needs of their customers and the pressures they face. By using Open Banking-enabled VRP, we've been able to support Moneyline in delivering a repayment experience that is flexible, resilient, and designed around real lives."
