Zoot, a global provider of advanced instant credit decisioning, risk management, loan origination and workflow management solutions, announced today a partnership with Credit Kudos, a technology start-up that uses consumer transaction data to build highly accurate and transparent credit scorecards and affordability metrics.
The combination will enable lenders to easily incorporate account transaction data into their existing risk process, leveraging Credit Kudos’ preconfigured risk models through Zoot’s cloud-based platform integrating data and scoring to create a seamless application process.
Adam Jackson, Zoot’s Managing Director commented, “there is an excellent cultural and technological fit between Zoot and Credit Kudos and we are excited at the value this partnership will bring to our clients. Zoot have been driving innovation within the financial services industry for over 26 years and Credit Kudos are setting the pace for risk scoring powered by consumer consented transactional data.”
Freddy Kelly, Credit Kudos CEO stated, “with PSD2 and Open Banking on the horizon, combining transaction with bureau datasets is quickly becoming a competitive requirement. Using Machine Learning (ML) we’ve trained models to predict risk based on a borrower’s transaction history. The Credit Kudos Connect.js library and Zoot’s decision engine give our customers the ability to immediately leverage our models without redesigning their processes. Working with Zoot builds on this speed and simplicity. Zoot’s cloud-based platform enables the flexibility that is necessary to effectively deploy and iterate on such augmented scorecard strategies. Zoot are known for the flexibility and reliability of their services and our product enables consumers to securely share relevant information with a lender in order to get a decision. These two best in class offerings combined creates a unique proposition for our clients.”
Amongst other key industry challenges, the partnership targets reducing friction in Affordability checks, a significant problem for lenders today. The Credit Kudos service enables the collection of 12 months worth of bank statements in under 60 seconds. Accessing transactional data at a granular level extends the universe of borrowers as it also provides an accurate picture of applicants who if assessed using more traditional credit scoring methods might be regarded as thin-file or no-file applicants. The combined service will allow financial institutions to address a much wider market without forfeiting accuracy.
Freddy Kelly added, “from a regulatory perspective a “broad strokes” approach to affordability is no longer enough. We collect the necessary fine-grained income and expenditure data without holding up our clients’ customers. This data is extremely valuable and Zoot’s decision engine gives full control over the process and allows for sophisticated analysis and complex decisioning to take place in sub-second time.”
Adam Jackson commented, “combining our respective best of breed services brings a truly world-class service to market at a time when, with PSD2 and Open Banking upon us, making sense of and leveraging the full value of transactional data has never been more important.”