Loans Warehouse partners with Credit Kudos to help lenders responsibly increase lending
17 June 2020
- Online broker Loans Warehouse has chosen challenger credit reference agency Credit Kudos as its Open Banking provider to enable lenders to safely and responsibly increase lending.
- Traditional credit risk and affordability assessments do not provide sufficient insight into a borrower's current financial situation.
- Loans Warehouse will leverage Credit Kudos’ platform to enrich the data available to its panel of lenders, helping them better assess borrowers’ eligibility.
- Prospective borrowers will be more likely to be matched with a lender that meets their needs, increasing their chances of being accepted.
Wednesday 17 June 2020 – Loans Warehouse has selected award-winning fintech Credit Kudos as its Open Banking provider, to enable lenders to safely and responsibly increase lending activity.
Now, more than ever, lenders need access to up-to-date information to continue to lend responsibly. Traditional credit risk and affordability assessments do not provide lenders with sufficient insight into an individual's current financial situation. Loans Warehouse will use Credit Kudos’ platform to enrich the data available to its panel of lenders and enable them to better assess borrowers’ eligibility using Open Banking insights.
Credit Kudos has developed a secure onward consent mechanism which allows Loans Warehouse to safely share credit risk and affordability insights with lenders to help better inform their decisions.
As part of the Loans Warehouse customer journey, individuals will be asked to connect with Credit Kudos through Open Banking. Credit Kudos will then analyse a borrower’s financial transaction data and securely provide Loans Warehouse’s lending panel with an up-to-date report of an individual’s current financial situation. By sharing richer, real-time data, prospective borrowers will be more likely to be matched with a lender that meets their needs, increasing their chances of being accepted.
Matt Tristram, Co-Founder and Director, Loans Warehouse, said: “We selected Credit Kudos as they can provide a safe, secure framework that far surpasses other providers to ensure that we can pass better leads to our clients and therefore help them accept more people. This is game changing for the lender-broker relationship.
“The Credit Kudos team is hugely innovative and understanding of what is needed for lenders to continue to lend in the current climate. It’s crucial for lenders to be able to access rich open data to safely extend their services to more people and offer much more personalised services to their customers.”
Freddy Kelly, CEO and Co-Founder, Credit Kudos, added: “The recent unprecedented economic disruption has dramatically altered the lending landscape, making it impossible for lenders to continue business as usual while relying on just traditional credit bureau data. Lenders need access to up-to-date, better information that will help them to lend confidently and responsibly. By working with brokers – such as Loans Warehouse – in this way, not only are we helping lenders continue to provide loans, we are also ensuring more borrowers can be matched with the right financial product for their needs.”
The current coronavirus pandemic has left many people struggling financially and reliant on credit. Indeed, Credit Kudos research found three in ten (28%) have had their income ‘significantly’ impacted by COVID-19. However, even in a climate where people’s financial situations are changing rapidly, the up-to-date insights and analysis generated from Open Banking data can help lenders continue to lend responsibly.
Credit Kudos is a challenger credit bureau that aims to make it easier for everyone to access fair and affordable credit. In April 2020, Credit Kudos announced a £5 million Series A funding round led by Albion VC as it continues its growth in the UK and beyond.
