Zopa Expands Partnership with ClearScore Group for Open Banking Technology
Key Highlights:
- Partnership Expansion:
- Parties Involved: Zopa (UK digital bank) and ClearScore Group
- Focus: Consumer credit assessments using open banking technology
- Initial Collaboration:
- Started: Two years ago
- Initiative: 2025 Fintech Pledge
- Goal: Provide 10 million positive actions to enhance financial resilience for UK consumers
- Current Development:
- Technology Provider: ClearScore Group’s open banking unit, D•One
- Services: Open banking connectivity and transaction categorisation intelligence
- Implementation:
- Application: Loan origination journeys
- Purpose: Improve accuracy in assessing suitability for credit cards, loans, car finance, and other lending products through spending data aggregation
- Financial Performance:
- Pre-Tax Profit (FY 2023): £15.8 million
- Total Revenues: Increased by 29.7% to £226 million
- Deposits: Rose by 14.9% to £3.4 billion
- Loans on Balance: Increased by 27.3% to £2.7 billion
- Impact of Technology:
- Objective: Expand lending to consumers with limited credit histories
- Previous Application: D•One provided similar technology to NewDay, a UK consumer credit provider, in 2022
By leveraging D•One’s open banking technology, Zopa aims to further enhance its lending capabilities and financial inclusion for consumers with traditionally limited access to credit.
