Credit Kudos a bureau hero in open banking roll-out race
Credit Kudos has got connected with banks in the UK, becoming the “first credit bureau to offer open banking services to lenders and individuals”.
According to the credit bureau, borrowers can now use its services to verify income and demonstrate creditworthiness using their financial history data.
As an account information service provider (AISP), Credit Kudos has been working with the banks throughout a three-month managed roll-out period, which began in January with the launch of open banking.
The company has now launched connections with Lloyds, Halifax, Bank of Scotland, Royal Bank of Scotland, NatWest, Ulster Bank, Allied Irish Bank, Danske Bank, and HSBC.
Freddy Kelly, CEO of Credit Kudos, says it makes the process of applying for loans “faster and easier” without impacting borrowers’ traditional credit scores.
The firm eliminates the need to manually fill out forms or upload documents
Last year, Credit Kudos received the green light from the UK’s regulator, Financial Conduct Authority (FCA), to operate as a credit reference agency.
At the time, it said the authorisation means “putting its stake in the ground and taking on industry olds – Experian and Equifax”.
Traditional credit scores use past credit repayments as a predictor, while Credit Kudos’ financial behaviour score (FBS) uses “live” data on the way people spend/save to predict their likelihood to repay.