Vodafone partners with fintech Moneyhub to automate social tariff eligibility checks to expand financial inclusion through its VOXI For Now programme.
Global telecommunications company Vodafone has implemented open banking technology from financial data platform Moneyhub to automate verification for its social tariff mobile plans.
The partnership aims to streamline eligibility checks for VOXI For Now, Vodafone’s discounted tariff programme for recipients of government benefits. The service, launched in 2020, provides access to eligible customers receiving Jobseeker’s Allowance, Disability Allowance, Personal Independent Payment, Employment and Support Allowance and employment-based Universal Credit.
The initiative addresses increasing demand for social tariffs amid rising living costs. Under the previous system, manual verification processes created delays in service activation for eligible customers.
Streamlining checks with technology
Moneyhub, a Financial Conduct Authority regulated fintech firm, provides the infrastructure to verify benefit payments through open banking connections – a technology framework that enables authorised third parties to access banking data with customer consent.
The verification process requires a one-time consent for bank account analysis during the application process. The system completes checks without affecting credit scores or requiring direct data transfers between organisations, delivering results in real-time.
Scott Currie, Head of VOXI at Vodafone, says: “We launched ‘VOXI For Now’ to help those who need it most, providing unlimited data, calls and texts at a heavily discounted rate for those receiving government benefits.
“Utilising Moneyhub’s open finance technology, we have been able to streamline the automated eligibility checking. This means VOXI customers no longer have to wait for a manual verification; which means we can get people who are typically financially underserved connected to the services they need faster.”
The partnership represents a significant shift in how telecommunications providers verify eligibility for social tariffs. Traditional methods often required customers to submit physical documentation or undergo lengthy manual checks.
Through its VOXI Drop loyalty programme, Vodafone offers customers 12 months of complimentary access to Moneyhub’s consumer application, which typically costs £14.99 (US$19.04) per year.
The platform enables users to connect various financial accounts including current accounts, savings, mortgages, pensions, credit cards and investments in a single dashboard.
Expanding financial management tool capabilities
The Moneyhub platform also includes features for budget management, spending analysis, savings goals and rent recognition. These tools aim to help customers understand their finances and work towards financial objectives, thereby improving accessibility.
“Through the cost of living crisis and beyond, consumers need simple and accessible ways to manage their finances which focus on supporting financial wellness”. – Dan Scholey, Chief Commercial Officer at Moneyhub.
Moneyhub’s market research indicates that 50% of Generation Z (Gen Z) express concerns about their financial situation. The company’s data shows that customers demonstrate an eightfold increase in savings activities within six months of adopting the dashboard.
Likewise, the VOXI Drop programme includes rewards across retail sectors including beauty, technology and food. Vodafone receives anonymised aggregated data on customer spending patterns to inform engagement strategies and personalised rewards.
The integration of open banking technology for social tariff verification comes as the telecommunications sector faces increasing pressure to support customers during the cost of living crisis. Industry regulator Ofcom has called for providers to increase awareness and accessibility of social tariffs.
The partnership announcement comes as Vodafone is eager to progress its plans to merge its UK operations with Three UK. The Competition and Markets Authority (CMA) is currently reviewing the proposed merger over concerns about potential price increases for customers.
Both Vodafone and Three have stated they hope the merger will offer better choice and value for mobile and broadband customers across the UK, in addition to driving economic growth for the country.
Dan Scholey, Chief Commercial Officer at Moneyhub, adds: “Through the cost of living crisis and beyond, consumers need simple and accessible ways to manage their finances which focus on supporting financial wellness.”
Vodafone’s move to partner with Moneyhub aims to represent a positive shift to reaffirm the mobile provider’s commitment to financial inclusion and customer support.
