ClearScore, Zopa to bring Open Banking to the credit industry

Tuesday 11 May 2021 09:52 CET | News

Credit marketplace ClearScore has partnered with digital bank Zopa to introduce Open Banking to credit card users in the UK, according to AltFi.

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, says AltFi.

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. 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. 37% 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.

Of the 200,000 ClearScore users that have already linked their data to the app via Open Banking, 43,000 have seen a Zopa offer which, under normal circumstances, would not be available to them based on credit report data alone. 

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Keywords: partnership, Open Banking, fintech, credit card
Categories: Banking & Fintech | Online & Mobile Banking
Countries: United Kingdom
This article is part of category

Banking & Fintech