UK-based Open Banking solutions provider DirectID has partnered with alternative lending platform Faciit to help new-to-UK clients access credit.
Through this partnership, the two companies can help customers save one-third of their credit loan requirements for at least three months by leveraging Faciit’s save-to-borrow solution. Faciit will provide the remaining two-thirds as competitive loans. Faciit is an alternative lending platform that works with people who would struggle to access finance from mainstream sources and helps them access competitive loans. The company’s goal is to create a community of financially empowered people who make affordable financial decisions.
Regarding this partnership with DirectID, Faciit officials cited by retailbankerinternational.com highlighted that it will help them achieve their goals of improving financial inclusion for new-to-country individuals. Representatives from DirectID cited by the same source talked about the benefits of Open Banking and how it can enable better access to financial services for everyone, regardless of their credit history or financial status.
The Financial Inclusion Report for 2021/2022 published by HM Treasury revealed that, as of June 2021, there were over 7.2 million basic bank accounts open in the UK. A basic bank account is a specific account for those who have been unable to open a personal current account and has most of the features of a standard personal current account.
Over 2020/2021, more than 44,000 customers opened a basic bank account and over 69,000 basic bank accounts were upgraded to standard personal current accounts.
When it comes to increasing access to appropriate and affordable credit, the government supports the role that credit unions play in improving the financial well-being of their local communities. Consequently, the government is bringing forward amendments through the Financial Services and Markets Bill to allow credit unions to offer a wider range of products and services to their members.
In June 2022, DirectID worked with UK-based digital payments company Shieldpay to implement an Open Banking-supported bank account verification system. Working together, DirectID’s Connect widget and Shieldpay's payment engine enabled customers to transfer funds online with digital escrow and trust services. The combined service aimed to bring seamless identity verification during transfers, streamlining the Shieldpay customer experience without compromising security.
In February 2023, DirectID received a EUR 9 million investment from Ingka Investments and revealed its plans to use the funds to improve its credit scoring solutions. DirectID’s global credit risk score offers advanced data that can optimise credit and risk decisions. This real-time data is used by risk managers to make better decisions and improve the value of the entire credit life cycle.
Every day we send out a free e-mail with the most important headlines of the last 24 hours.
Subscribe now