Credit scoring service and marketplace ClearScore has launched a business-to-business unit to help UK lenders tap into Open Bnking data for lending decisions.
Built on ClearScore's recent acquisition of Money Dashboard, the new unit, called D•One, promises to help credit card providers and banks accelerate consumers’ bank data into mainstream lending.
D•One combines two products: ‘Connection•One’, which provides open banking connections to 46 financial institutions, and ‘Category•One’, a transaction categorisation engine which allows clients to classify and analyse bank account transactions.
ClearScore says that the two core services enable D•One to successfully identify a range of financial behaviours, offering the ability to ‘split risk’, or more accurately categorise the riskiness of borrowers.
The firm says that lenders can tap these key indicators to identify less risky potential borrowers that might otherwise have been declined based on credit score data alone.
Justin Basini, CEO, ClearScore, says: "There is a huge opportunity for lenders to use open banking to enhance the underwriting process by identifying financial behaviour that materially splits risk within credit score bands and allows more accurate affordability assessments.
"Through D•One we can help our partners both manage their risk more effectively and increase their addressable market by identifying users who might otherwise have been screened out due to credit score data."