Following this announcement, the information is set to provide an in-depth understanding of a consumer’s financial situation and give Fiinu, which is a registered bank, the option to deliver robust Open Banking-driven eligibility checks of consumers that apply for an overdraft.
A standalone solution, Fiinu's Plugin Overdraft enables individuals to have an overdraft facility alongside their already existing bank account, leveraging the same infrastructure and helping ensure a smooth customer journey. Through this, consumers are provided with greater choice, as the solution aims to support financial inclusion and freedom and bring to the overdraft market a flexibility that is considered much needed.
TransUnion representatives have advised that by partnering with Fiinu, the company supports their goal in driving innovation in the market by looking to provide new avenues for consumers to access credit. By making use of the TransUnion Open Banking capabilities alongside its credit reference data, a comprehensive view of the individual’s financial situation will be provided, enabling Fiinu to assess which finance is most suitable for the individual’s needs. Furthermore, the collaboration aligns with TransUnion’s mission of using ‘Information for Good’, with the company looking forward to continuing in working with Fiinu as they progress towards the launch of this solution.
Fiinu company officials added that it is important for consumers to have increased choice when it comes to finding finance and that there are products that are suitable for different needs. When it comes to consumer credit provision, overdrafts are believed to play an important role, however up until this point, they have been offered as an extension of an existing personal current account only.
Having this knowledge at its basis, Fiinu launched an overdraft that can plug in to a current account/bank account effectively if the facility is not available. Leveraging TransUnion's Open Banking alongside credit reference data will enable the company to obtain a holistic view of the financial circumstances of a consumer, enabling them to provide overdrafts, where appropriate, to consumers that might have otherwise faced difficulties in obtaining an overdraft and had to resort to forms of credit that are increasingly expensive and less appropriate.
In September 2022, the fintech announced that it has partnered with Estonia-based core banking platform Tuum as the main banking platform to power its Plugin Overdraft solution. Following this collaboration, Tuum’s solution enables customers to have multiple bank accounts linked to their dedicated Fiinu overdraft account through means of Open Banking application programming interfaces (APIs).
In July 2022, the company made public the receival of its deposit-taking bank license from the Bank of England (BoE). As per information provided at the time, the issuing of the bank license/authorisation from the Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA) concluded a journey of approximately five years, with the company having confirmed that it will continue to work with UK regulatory authorities, external auditors, investors, and its Board to further mobilise the bank.
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