Financial technology start-up Cardeo has been announced as one of 13 firms undertaking a test as part of cohort 7 of the Financial Conduct Authority sandbox. The regulatory sandbox allows firms to test innovative financial products in a live environment.
Established in July 2020, Cardeo is developing a socially responsible mobile app to help users to manage their credit card accounts and to optimise their repayments, using open banking. For selected users, flexible refinancing of their existing credit card debt is offered.
The news comes shortly after the Luton-based company closed its second equity funding round in May 2021, raising a further £2.1m to take the Cardeo app to market. Prominent investors in the most recent round include JamJar Investments, a venture fund established by the three co-founders of Innocent Drinks.
The 12-strong Cardeo staff team is now focused on meeting all technological, regulatory and marketing challenges in order to make the app available to users through its beta tester programme from next month; and to all users by the end of the year.
UK credit cardholders can sign up to test the Cardeo app at cardeo.com/testing
Gavin Shuker, Chief Executive Officer of Cardeo, said:
“Millions of credit cardholders are paying more than they need to in interest and fees - and we’re committed to helping them get a better deal.”
Dr Ewan Kirk, Executive Chair of Cardeo, said:
“Cardeo will be a first-of-its-kind app in the UK, delivering real savings for 14.5m credit card holders who pay interest on their balances.”
Adam Balon, partner at JamJar, said:
“We’re welcoming Cardeo into the JamJar stable, alongside other fantastic consumer brands like Bulb, Farewill, Deliveroo, and Innocent.”
Notes to the editor
1. The FCA regulatory sandbox allows businesses to test innovative propositions in the market, with real consumers. The sandbox is open to authorised firms, unauthorised firms that require authorisation and technology businesses that are looking to deliver innovation in the UK financial services market.
The sandbox seeks to provide firms with:
- the ability to test products and services in a controlled environment
- reduced time-to-market at potentially lower cost
- support in identifying appropriate consumer protection safeguards to build into new products and services
- better access to finance
At the end of the regulatory sandbox period, the tests will be reviewed by both the firm and the firm’s sandbox case officer to assess the test against a range of success measures. The FCA will then work closely with each firm to ensure that the appropriate course of action is taken as they progress out of the sandbox.
2. Research commissioned by Cardeo has established that around 14.5m UK credit cardholders pay monthly interest on their balances. (Yonder for Cardeo, November 2021). Open banking brings the possibility of better management of these accounts via a robo-advisor app being developed by Cardeo.
3. Cardeo’s co-founder team is Gavin Shuker (former Member of Parliament for Luton South, 2010-19); Chris Cheyne (formerly PA Consulting, EY Business Consulting); John Whittaker (formerly HMRC, Lloyds Register). Dr Ewan Kirk is Executive Chair (formerly Goldman Sachs; founder of Cantab Capital Partners).
For further information
More Cardeo Press releases
19 April 2023
New report calls credit card market “broken” – average customers pay close to £1,000 in interest every year
31 January 2023
'Malfunctioning economy' needs immediate Government action
14 December 2022
Cardeo consulting with Government to reform 'cumbersome' Consumer Credit Act
26 October 2022
Cardeo gets green light to launch with full FCA authorisations
12 October 2022
Banks costing customers millions by withholding data
6 October 2021
Cardeo hailed as leading fintech and awarded Government scaleup place
10 June 2021