Exclusive: ClearScore and Zopa sign agreement to bring open banking to the credit sector
One more step towards removing the “computer says no” attitude towards credit cards.
Image source: Andy Sleigh / ClearScore
Another partnership that seems to correspond to fintech heaven, this time for the credit market ClearScore and digital bank Zopa.
Currently four million people in the UK use open banking in their daily lives, with technology spreading across all areas of fintech and now, for the first time, into the world of credit cards.
This collaboration is the first time that a credit market and a credit provider have joined forces to use open banking.
By combining the real-time open banking data held by ClearScore and Zopa, users will be able to immediately know if they are pre-approved for a Zopa credit card.
The Zopa credit card offered through ClearScore Marketplace will have a personalized APR and limit based on the customer’s creditworthiness and personal financial situation.
“We are working with our partners to really unleash the value of open banking, in terms of providing better access to credit, which is so important, especially now,” said Andy Sleigh , COO of ClearScore. AltFi.
“This is the first partnership we have been able to forge with our friends at Zopa, which is the very first credit card in the UK that will use open banking data in its subscription, which is a very big step forward. for the industry as a whole. “
By leveraging open banking, ClearScore users who may have been turned down for credit products in the past can now access Zopa’s pre-approved credit card, as the decision takes a longer view into account. off their finances.
“As a result of Covid-19, many people have experienced events in their lives that they may not have experienced before, which means their ability to access credit at fair prices is invaluable,” added Tim Waterman, CCO of Zopa.
“Traditional banks take a much more ‘computer says no’ attitude to loans when people have bad credit scores. Thus, thanks to open banking, we can take a much more holistic view of a consumer’s financial situation and lend responsibly to those who would otherwise have been excluded, ”he continued.
In fact, 37% of those who have signed up for the credit card so far would not have qualified for a Zopa credit card using traditional credit decision methods.
Of the 200,000 ClearScore users who have already linked their data to the app through open banking, 43,000 saw a Zopa offer that, under normal circumstances, would not be available to them based on credit report data alone. .