ClearScore, Zopa to bring Open Banking to the credit industry

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.