Credit Kudos uses open banking data, on both bank transactions and loan outcomes, to provide lenders with a holistic view of an individual or business’ current financial situation.
LendInvest has partnered with Credit Kudos with the intention to streamline underwriting through open banking.
The partnership also aims to provide brokers and customers with a more secure service, and enable LendInvest to make more informed lending decisions through open banking insights.
LendInvest said it selected Credit Kudos to speed up its time-to-decision with a smoother customer journey, and to enhance affordability and credit risk assessments using open banking-enabled risk insights.
Credit Kudos uses open banking data, on both bank transactions and loan outcomes, to provide lenders with a holistic view of an individual or business’ current financial situation.
LendInvest said open banking is also part of its strategy to make its offering available to a wider audience, such as self-employed and sole traders who may not have conventional income patterns.
A faster application process has already delivered a 26 percentage point increase in open banking conversion rates since going live in February, according to LendInvest.
Arman Tahmassebi, chief operating officer of LendInvest, said: “Getting rid of the manual documentation process has allowed us to offer a far faster and more convenient service.
“Although we have been using open banking for two years, this new partnership with a likeminded fintech has allowed us to take it to the next level and really reap the benefits of the technology.
“The greater insights are empowering us to make better informed, faster lending decisions to more people.
“We have been particularly impressed with the seamless integration of Credit Kudos into our system - the new dashboard is highly intuitive and it's already helping us serve more customers.”
Freddy Kelly, founder and chief executive of Credit Kudos, added: “Like LendInvest, we are committed to making credit applications smoother and fairer for both the lender and applicant, so this partnership is a natural fit.
“Open banking technology is transformative for lenders who want to make smarter and faster decisions to better serve their customers.
“With our technology in place, lenders can automate the underwriting process and get a far more accurate picture of an applicant’s true financial position.
“It not only helps them lend responsibly but also opens up their service to underserved customers who may not have traditional income patterns, such as sole traders.”
