Source: Optimus Cards
In a UK Credit Union first, Optimus Cards, the UK’s most innovative provider of white label card and banking solutions for traditional and new currency, has launched its new flexible and responsible Credit Card product to Credit Unions at the Annual ABCUL conference.
In addition, Optimus Cards it is announcing its collaboration with NestEgg to support its Credit Card programme enabling Credit Unions to adopt the automated decision-making for credit card applications. NestEgg helps individuals improve their financial health starting with affordable credit from selected responsible lenders.
In a new giant step for the sector, this collaboration means credit unions can set their own risk appetite for credit card approvals by automating limits based on the credit profile of the borrower.
Optimus has been at the forefront of this new Credit Card strategy. The company has been part of the Credit Union working Group within ABCUL, leading to the development of a strategic framework on behalf of its members over the last 18 months.
This new initiative is based on the same Optimus Principles of the ownerships of the balance sheet, Credit Line, Risk and receivable always belonging to the Credit Union
Lindsay Ward COO of Optimus Cards commented. “This is a strong strategic move for Optimus. The collaboration with Adrian and the team at NestEgg has given us a clearer understanding of what the Credit Union sector needs. The further insights from the NestEgg systems means we can launch a flexible and robust credit card solution that is unmatched in the Credit Unions space. This Credit Card programme will empower credit unions to adopt a new service to their members whilst opening a new affordable borrowing loan book.
“Optimus are providing a Credit Card on behalf of the UK Credit Unions in a very transparent and straightforward way. All the programme receivables are owned by the independent Credit Unions. The solution and the loan book are owned by the Credit Union and so is their consumer credit license, their risk and their portfolio P&L. It is an exciting time for Optimus,” concluded Ward.
Adrian Davies - Co Founder of NestEgg commented, “NestEgg is excited to be working in partnership with Optimus Cards to realise a long-held ambition of the credit union movement - providing a credit card to members.”
“With 1/3 of credit union borrowers holding revolving credit elsewhere, the demand is proven. In fact, over two-thirds of members using revolving credit had near or prime credit scores. And once opened credit card accounts stay open; in most cases for more than six years.”
“We’ve been researching this opportunity with several credit unions. and were amazed to find that in some credit unions 94% of borrowers hadn’t missed a single repayment. The difficulty has always been how to make revolving credit work convenient for members. Now Optimus Cards can make this a reality,” concluded Davies.
As a regulated CaaS (Cards as a Service) provider and Principal Member of Mastercard, Optimus Cards provides payment and banking solutions to regulated and non-regulated firms, from straightforward BIN Sponsorship to programme managers, all the way through to fully managed card and banking solutions, the Optimus strategy is based on innovation, speed and flexibility. Offering its solutions to mutual firms such as credit unions and building societies. Optimus Footprint and success is built on ecosystem integrations with numerous core banking platforms. Providing the ultimate in embedded banking and card solutions.
Following the research, NestEgg has developed automated decision-making for credit card applications. This means credit unions can set their own risk appetite for credit card approvals, automating limits based on the credit profile of the borrower. Currently NestEgg helps a credit union decide a loan application every three minutes 24 hours a day. 7 days per week. 365 days per year.