All thanks to the wonders of open banking.
Image source: over there.
The Rio Ferdinand Yonder-backed challenger credit card breaks new ground today, with the removal of its credit score requirement.
The change means that millions of people who have poor or no credit will still be able to apply for the Yonder card, using their open banking data.
By working with Yapily to collect a candidate’s bank account information, Yonder says it can analyze income and expenses to create a “holistic credit profile.”
“Unfair credit scoring methods, legacy app experiments and vague pricing techniques are a thing of the past,” said Yonder CEO and co-founder Tim Chong.
“With open banking, we are restoring fairness and equality to credit. Yapily’s open banking technology and expertise helps make this vision a reality.
According to Chong, around 9% of the adult population in the UK have little or no credit history, which is around 5 million people.
In addition to opening up Yonder to these potential customers, the partnership with Yapily will also result in the addition of open bank payments for customers paying their credit balances.
Yonder only came out on the sly earlier this month and has already caused a stir by raising £20m from a group of investors including Northzone, LocalGlobe and footballer Rio Ferdinand.
The startup was founded last year by ClearScore alumni Tim Chong, Theso Jivajirajah and Harry Jell.
They first founded Yonder to help Australian citizens arriving in the UK who often struggle to get a credit card despite having a good job and a good home in Australia.