Credit Kudos and TrueLayer Score New Customers as Open Banking Partnerships Intensify
Atom Bank and Wombat Invest respectively seek to improve their lending decisions and their clients’ deposits.
Image Source: Freddy Kelly / Credit Bravo.
For Wombat, this change already means that 82% of its one-off deposits, which previously relied on card payments, are now facilitated by TrueLayer Payment API.
“It’s not a big surprise,” said Jamie Morton, TrueLayer Country manager UK. “We have seen a significant increase in conversion rates with our Payments API, overtaking both cards and alternative payment methods. “
At Bank of atoms end, the partnership with Credit congratulations run more slowly, starting with an instant income and feature check to improve its small business secured lending, and with plans to expand functionality to unsecured business loans and even residential mortgages by the end of this year. the year.
In the future Bank of atoms believes the open banking outlook will allow it to lend to even smaller, asset-less businesses, while reducing the risk of bank default.
“Traditional credit reports aren’t up-to-date or detailed enough, but Open Banking data allows us to provide lenders with a real-time, holistic view of an individual’s or business’s finances, as well as a forecast. future circumstances “mentioned Credit congratulations CEO and founder Freddy Kelly.
Bank of atoms plans to provide an additional £ 1bn in loans to some 10,000 SMEs over the next two years, and the bank says open banking developments are key to achieving this goal.