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ClearScore and Zopa ink deal to bring open banking to the credit industry

AltFi | Aisling Finn | May 11, 2021

zopa and clearscore - ClearScore and Zopa ink deal to bring open banking to the credit industry

Image source: Andy Sleigh/ClearScore

One step closer to removing the “computer says no” attitude to credit cards.

Another partnership that seems to be a match in fintech heaven, this time for credit marketplace ClearScore and digital bank Zopa.

Currently, four million people in the UK use open banking in their day-to-day lives, with the technology spreading across all fintech sectors and now, for the first time, into the world of credit cards too.

The collaboration is the first time that a credit marketplace and a credit provider have teamed up to utilise open banking.

By combining real-time open banking data held by ClearScore and Zopa, users will be able to find out immediately if they are pre-approved for a Zopa credit card.

The Zopa credit card offered via ClearScore’s marketplace will have a personalised APR and limit depending on a customer’s creditworthiness and personal financial situation.

See:  Here are the UK’s 5 leading open banking providers

“We’ve been working with our partners to truly unlock the value of open banking, with regards providing greater access to credit, which, is so important, particularly in this day and age,” Andy Sleigh, COO of ClearScore, told AltFi.

“This is the first partnership that we’ve been able to create with our friends at Zopa, which is the first-ever credit card in the UK that’s going to be using open banking data in its underwriting, which is a really big step forward for the industry as a whole.”

By leveraging open banking, ClearScore users who may have been turned down from credit products in the past can now access Zopa’s pre-approved credit card as the decision takes a wider view of their finances into account.

“Traditional banks take a much more ‘computer says no’ attitude to lending when people have adverse markers on their credit file. So through the use of open banking, we can take a much more holistic view of a consumer’s financial situation and lend responsibly to those that would have otherwise been excluded,” he went on.  In fact, 37 per cent of those that have signed up for the credit card so far, would not have qualified for a Zopa credit card using traditional credit decisioning methods.

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NCFA Jan 2018 resize - ClearScore and Zopa ink deal to bring open banking to the credit industry The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

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