Clearscore launches open banking business for lenders
Clearscore is set to launch a new open banking and data insight unit which will help UK lenders use open banking to improve their offerings.
Called D-One, the new business was built following the Clearscore Group’s acquisition of Money Dashboard in early 2022.
D-One will offer two products which can be used individually or in combination. They are called Connection-One and Category-One.
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Connection-One powers a client’s open banking sign-up and authorisation process. It can either be white-labelled or fully-managed by D-One.
Meanwhile, Category-One has been described as “an advanced transaction categorisation engine which allows clients to classify and analyse bank account transactions”.
“We believe that the future of lending decision making will be the combination of a range of data to make better decisions,” said Justin Basini, chief executive and co-founder of The ClearScore Group.
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“There is a huge opportunity for lenders to use open banking to enhance the underwriting process by identifying financial behaviour that materially splits risk within credit score bands and allows more accurate affordability assessments.”
Basini added that lenders can use D-One’s data to better manage their risk and identify borrowers “who might otherwise have been screened out due to credit score data”.
“While the use of alternative data in underwriting is still in its infancy, it will become a critical capability over the next few years,” said Tim Kelleway, director of D-One.
“Our aim is to drastically reduce barriers to entry for lenders in adopting open banking across their platforms and acquisition channels.
“Our services are fully optimised to specific lender needs, such as the ability to verify income, accurately assess essential expenditure, and identify clear indicators of lending risk – all delivered through a modern and highly performant tech stack.”
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