CRIF forms partnership with BMW Financial Services

European credit information provider CRIF has formed a new partnership with BMW Financial Services to provide Open Banking-powered credit checks and lending services to automotive retailers.

The collaboration aims to enhance the lending experience for car buyers, offering instant decisions on their loan applications and facilitating a smoother purchasing process.

Through CRIF’s advanced Open Banking services, hundreds of UK vehicle retailers associated with BMW Financial Services will be able to conduct “seamless” credit checks for car finance.

Open Banking-powered credit checks provide a more comprehensive assessment of an applicant’s creditworthiness, enabling individuals who may have previously been denied loans to be accepted, without additional risk for the lender.

By integrating CRIF’s technology, customers of BMW Financial Services will benefit from easier access to car finance, benefitting from faster decisions and financial products tailored to their needs and current financial circumstances. Additionally, the partnership will allow retailers to approve more borrowers as they gain a holistic view of an applicant’s creditworthiness.

CRIF’s Sara Costantini

The partnership comes at a time when the automotive market in the UK is recovering – there was a 17.9% year-on-year increase in car sales in 2023, as supply challenges diminished.

CRIF’s experience in the car finance sector, including its Indirect Lending Service in the US, has already helped numerous car dealers and lenders streamline loan approvals, making the process faster, more accurate, and virtually paperless.

Sara Costantini, regional director for UK & Ireland at CRIF, said: “We’re seeing the UK car industry brush off the impacts of the pandemic and return to strong growth. Our partnership with BMW Financial Services in the UK will support this, helping more people to access the finance they need when buying a new motor.

“By utilising Open Banking transaction data, BMW Financial Services accesses more accurate consumer insights and extends its services to those who may have a thin credit file, due to living abroad for example, or those with non-traditional income patterns, such as those working in the growing gig economy.”

She added: “Ultimately, this will help UK consumers to access the finance they need without extra risk, with the potential to increase sales for hundreds of BMW dealers and associated brands across the country.”

Further listening: How the economic crisis is shaping what banks should offer – listen to CRIF’s Sara Costantini on the Open Banking Expo Unplugged podcast