Credit Kudos sent Signal, a credit score based on Open Banking and machine learning that it says allows lender specialists to broaden the recognition of recently turned down customers and reduce defaults. Singal uses a blend of machine learning and transaction data collected by Open Banking to anticipate the probability of a singular being repaid. The model was prepared based on transaction data and loan results collected for over six years and allows lenders to rate all applicants, in addition to those with a financial record.
“Our technology is transforming and modernizing the lending industry to benefit both credit providers and borrowers,” said Angus Clacher, Product Manager at Credit Kudos.
Lenders who have already adopted the new tool are Admiral and 247 Money.
“Our latest solution – Assembly – helps credit providers scale by increasing their loan portfolio without increasing operational costs, while borrowers benefit from much faster decisions. We’re extremely excited about Assembly – it promises to revamp the lending process by giving credit providers the power of an entire data science team in one simple, online solution.
“Assembly is going to be a real game-changer for us – allowing us to explore the customer data available in the rich open banking environment to better automate and accelerate our decision-making processes,” Nicholas Jones, Client Processing Manager at Admiral Financial Services , added.
Bundling enables lenders to develop lending policies based on open banking data and Credit Kudos loan results, thereby helping to reduce defaults and increase acceptances.
“This will make us more operationally efficient by drastically reducing the time spent on manual processes, but also allow us to expand our services to more people with the more complete picture of affordability provided by the system. “
Admiral Financial Services uses Assembly to further automate its underwriting process, while 247 Money uses it to serve its current population of underserved applicants.
Using Credit Kudos’ new tool, 247 Money discovered that the new process gave them the ability to instantly assess the risks of thousands of potential customers, most of whom have very limited information on their credit report. Recently, Credit Kudos partnered with Curve to help fuel its ‘Klarna rival’, Curve Credit.
The partnership will see Kudos assess the affordability and creditworthiness of customers applying for Curve credit.
Summary of the news:
- Credit Kudos launches new open bank rating
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