Admiral Financial Services Limited (AFSL), part of the Admiral Group (LSE:ADM), has selected credit reference agency Credit Kudos to provide Open Banking data to initially help with income verification for its personal loan products.
According to AFSL the access to more up-to-date information than was previously available through traditional credit bureaus will help the company better understand a customer’s affordability, and better assess risk using financial data.
AFSL notes that it paused lending during the COVID-19 crisis owing to the difficulties in verifying income. The information provided by Credit Kudos through Open Banking is expected to help AFSL return to growth by increasing lending volumes.
Freddy Kelly, CEO and co-founder of Credit Kudos, said they are seeing an increase in a range of financial institutions adopting Open Banking technology. Kelly said that by using this technology, AFSL is firmly positioning itself as a pioneer in innovation and lending.
“Their customers who are searching for new loans – including the traditionally underserved – will soon be able to source new product offers by securely sharing data from their bank account. “
Using Credit Kudos’ embedded Open Banking service, AFSL customers will be able to share their financial transaction data securely within their application. Once connected, Credit Kudos instantly aggregates and analyses their financial transaction data to provide AFSL with rich insights to enhance their income verification process.
Scott Cargill, CEO of AFSL, said that assessing income in the wake of the pandemic caused difficulties for many lenders.
“Through this data-driven partnership with Credit Kudos, we are now able to more quickly and more reliably assess income allowing us to responsibly increase lending volumes. Data, agility and innovation, along with a strong customer focus, is at the core of our strategy and embracing Open Banking is just one part of this. In future it will allow us to offer new, revolutionary products, and ensure we can be more responsive to our customers’ needs and quickly adapt to meet them. Through this market-first partnership we will change the way our customers, including the financially underserved, access financial services and products.”