UK-based consumer credit provider NewDay has formed a partnership with credit marketplace ClearScore’s open banking business unit, D One. The collaboration aims to enable customers to receive credit assessments using open banking.
Over the course of 12 years and 1 billion transactions, D One has leveraged its open banking connection and categorization services to identify various financial behaviors, such as savings account deposits, which provide a more precise assessment of borrowers’ risk levels.
D One will offer NewDay comprehensive and specialized open banking connectivity and transaction categorization intelligence. This will allow potential and existing customers to choose to share their transaction data through open banking, facilitating a real-world assessment of affordability.
This approach opens credit to those with limited credit histories as well as supporting responsible lending practices.
ClearScore CEO and co-founder Justin Basini says that working with NewDay will create “a highly scalable digital platform and proprietary credit decision-making capability”.
NewDay chief commercial officer Ian Corfield says: “In the current economic climate, promoting financial inclusion is more crucial than ever, and open banking has a clear role to play in this.
“We are always looking at ways to develop our credit models through the integration of third-party data, and the partnership with D One will further bolster our ability to provide even more customers with responsible access to credit.”
