ClearScore and Plend revamp lending with innovative Open Banking partnership

28 Nov 2023

In a strategic move that underscores the increasingly significant role of open banking in financial decision-making, The ClearScore Group, a renowned global financial services marketplace group, has announced a groundbreaking partnership with alternative lender Plend.

The Plend-ClearScore collaboration promises to democratise credit options by offering loans that forego traditional credit scores, focusing instead on risk and affordability. Plend’s loans have now also been made available on ClearScore’s consumer marketplace in the UK.

Integral to this collaboration is D•One, The ClearScore Group’s open banking specialist, now utilised by Plend for superior open banking connectivity and precise transaction categorisation intelligence. By tapping into applicant transaction data via open banking, Plend aims to conduct a more tangible assessment of loan affordability.

This avant-garde approach facilitates not just responsible lending, but also creates viable credit paths for consumers with imperfect or sparse credit histories.

ClearScore and D•One’s unique offering unifies a technology provider’s open banking prowess with a consumer-centric financial services marketplace. This blend enhances the lenders’ decision-making process by incorporating transaction data, providing Plend with a broader consumer base receptive to sophisticated financial services products.

ClearScore Group CEO and Co-founder, Justin Basini, welcomed the partnership, emphasising the shared vision of empowering consumers via open banking and making a more accurate affordability assessment. He added that ClearScore’s digital platform and proprietary datasets promote smarter financial decisions and access to previously unattainable credit lines.

Echoing this sentiment, Plend’s CTO & Co-Founder, James Pursaill, highlighted the alliance’s potential to deliver affordable loans, backed by credit assessments driven by open banking intelligence.

D•One’s open banking services are formed of ‘ConnectionOne’ and ‘CategoryOne’, providing comprehensive open banking connections to over 50 financial institutions and a transaction categorisation engine, respectively. CategoryOne’s advanced engine allows clients to classify and scrutinise bank account transactions.

As it moves into its ninth year, the platform continues to expand as ClearScore now counts on its strength to service over 14 million users in the UK. This pioneering partnership signifies a crucial shift in the lending landscape, where open banking adjusts loan accessibility and affordability, ultimately transforming the borrower experience.