Lending Works, a p2p platform whose offer includes car loans, has partnered with challenger credit bureau Credit Kudos to help automate its borrowing application process.
Newly-introduced Open Banking regulations will allow Credit Kudos to pull data from prospective borrowers’ bank accounts, which will be then used to automatically fill the forms and upload documents required during Lending Works’ loan application process.
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Lending Works said that, currently, around 60% of loan applications are automated, while another 40% still require manual input. Through partnerships like the one with Credit Kudos, a firm that uses AI and deep-learning to augment the credit assessment process, Lending Works aims to increase the proportion of automated credit applications to 90%.
Freddy Kelly, chief executive officer of Credit Kudos, said: “With Open Banking, customers now have control of their own financial data. Lending Works and Credit Kudos are using Open Banking to provide borrowers with a faster and easier way to verify income and demonstrate creditworthiness.
“We’re excited to partner with Lending Works, who are as technology-obsessed as we are at Credit Kudos, to raise the bar for customer experience in the lending industry.”
Nick Harding, chief executive officer of Lending Works: “We are fanatical about creating best-in-market customer experience in consumer credit. Open Banking provides us with an opportunity to significantly enhance the ease and speed of applying for a loan, while simultaneously improving our credit underwriting process.
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By GlobalData“We are thrilled to be able to further enhance the positive experience customers have when applying for a Lending Works loan. Credit Kudos have already proven themselves as an early leader in their market, and we believe they have a very bright future in providing Open Banking services to other technology-led businesses.
Open Banking, formally known as Payments Services Directive 2, came into force EU-wide over the last year. It forces major banking institutes to make their customers’ data available to third parties in an accessible format, provided that the customers have agreed to it.
