Source: Headland Consultancy
D•One, the Open Banking services business from The ClearScore Group, has announced a partnership with Jaja Finance to provide the insights-driven lender with Open Banking connectivity and transaction categorisation intelligence. Jaja is the latest in a long line of progressive lenders leveraging alternative data to make responsible credit offers to consumers who would otherwise be excluded from mainstream lending.
The partnership will enable Jaja to enhance financial inclusion by using data beyond traditional credit decisioning methods, offering a comprehensive view of a customer’s financial health. This approach will ensure better outcomes for its customers.
D•One offers Jaja the ability to efficiently integrate consumers’ banking data into mainstream lending decisions. This data can be used to power smarter decisions, with enhanced accuracy leading to better outcomes for credit applicants and for lenders. D•One will also partner with Jaja to deliver more accurate income verification, risk insights, and affordability assessments.
D•One general manager Tim Kelleway
Tim Kelleway, managing director at D•One, said: “Jaja is leveraging our enriched dataset to better understand financial behaviours and bring about more inclusive and sustainable lending decisions. This past year, we’ve seen a huge engagement with our proposition, and we’ve signed up some of the UK’s most successful fintechs.
“The work we are doing here with our lender partners is undoubtedly changing the shape of credit decisioning in the UK, for the good of lenders and consumers.”
Francesco Di Costanzo, chief executive officer of Jaja, said: “Partnering with D•One to enhance our Open Banking offering is not just a strategic move for Jaja; it’s a commitment to offering our customers simple, fair and efficient credit. This partnership is the next step in demonstrating our dedication to innovation and inclusivity.
“At Jaja, we continuously explore new data sources and innovative approaches to better serve our customers. Leveraging D•One’s capabilities with our advanced analytics and risk models marks another milestone in transforming credit analytics for their benefit.”
D•One uses a unique combination of extensive Open Banking records and credit expertise to drive immediate value for its lender clients. This includes identifying positive and negative risk indicators otherwise obfuscated in the transaction data, thereby ‘splitting’ the risk level of applicants and enabling up to a 60% reduction in arrears with no reduction in lending volume.
As a result, it has helped participating lenders expand their risk decisioning beyond a reliance on credit reference agencies alone, enabling them to lend fairly and responsibly to financially excluded segments of society at a time where living costs have been escalating rapidly. In the last 12 months, D•One’s enriched Open Banking data has enabled approximately 120,000 consumers to receive an affordable loan that would otherwise have been declined.
Further reading: Why Open Banking data heralds a new era of credit decisioning
