Fintech firm Credit Kudos, the “challenger credit bureau,” has teamed up with Big Four auditing firm PricewaterhouseCoopers (PwC), in order to launch a digital banking “ecosystem sandbox.”
Credit Kudos is regulated by the UK’s Financial Conduct Authority (FCA). It aims to provide a different and potentially better way to determine creditworthiness using Open Banking data, instead of using historical borrowing information like traditional service providers.
Banks and other financial institutions may use Credit Kudos’ platform to redefine their lending approaches and strategies while taking advantage of improved decisioning models and products.
Freddy Kelly, CEO and co-founder at Credit Kudos, stated:
“PwC’s digital banking ecosystem is an important milestone in the banking sector as the power of open banking data gains momentum.”
“This is the start of an important and positive change to the financial sector, showing how financial institutions can evolve quickly and effectively through partnerships.”
Fintech firms have aimed to offer more nimble and effective ways to complete everyday business and financial activities. PwC’s analysis indicates that technological advancements in the banking industry might result in £34.6 billion additional revenue (by 2030), which could benefit the UK’s economy.
Earlier this year, Credit Kudos finalized a £5 million Series A investment round, which included contributions from several notable angel investors such as Christian Faes, founder at LendInvest, and Charlie Delingpole, the founder of ComplyAdvantage and MarketInvoice.
Last year, Credit Kudos further expanded its customer base, by adding more than 50 new lenders including CarFinance 247, ClearScore, and Mojo Mortgages. Credit Kudos allows its clients to use their personal banking data to get access to competitive offers for unsecured loans, mortgages, and automobile financing.