Online broker Loans Warehouse has chosen challenger credit reference agency Credit Kudos as its open banking provider.
Loans Warehouse said that it will leverage Credit Kudos’ platform to enrich the data available to its panel of lenders, helping them to better assess borrowers’ eligibility.
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Credit Kudos has developed a secure onward consent mechanism which allows Loans Warehouse to safely share credit risk and affordability insights with lenders to help better inform their decisions.
As part of the Loans Warehouse customer journey, individuals will be asked to connect with Credit Kudos through open banking.
Credit Kudos will then analyse a borrower’s financial transaction data and securely provide Loans Warehouse’s lending panel with an up-to-date report of a borrower’s current financial situation.
The credit reference firm said by sharing richer, real-time data, prospective borrowers will be more likely to be matched with a lender that meets their needs, increasing their chances of being accepted.
“We selected Credit Kudos as they can provide a safe, secure framework that far surpasses other providers to ensure that we can pass better leads to our clients and therefore help them accept more people,” said Matt Tristram, co-founder and director of Loans Warehouse.
“This is game changing for the lender-broker relationship.
“The Credit Kudos team is hugely innovative and understanding of what is needed for lenders to continue to lend in the current climate.
“It’s crucial for lenders to be able to access rich open data to safely extend their services to more people and offer much more personalised services to their customers.”
Credit Kudos said in a climate where people’s financial situations are changing rapidly because of Covid-19, the up-to-date insights and analysis generated from open banking data can help lenders continue to lend responsibly.
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“The recent unprecedented economic disruption has dramatically altered the lending landscape, making it impossible for lenders to continue business as usual while relying on just traditional credit bureau data,” said Freddy Kelly, co-founder and chief executive of Credit Kudos.
“Lenders need access to up-to-date, better information that will help them to lend confidently and responsibly.
“By working with brokers – such as Loans Warehouse – in this way, not only are we helping lenders continue to provide loans, we are also ensuring more borrowers can be matched with the right financial product for their needs.”