In a UK Credit Union “first,” Optimus Cards, the UK’s provider of white label card and banking solutions for traditional and new forms of currency, has introduces a flexible and “responsible” Credit Card product to Credit Unions at the Annual ABCUL conference.
As mentioned in the update, Optimus Cards is announcing its partnership with NestEgg in order to support its Credit Card program, allowing Credit Unions to adopt the automated decision-making for credit card applications.
As noted in the announcement, NestEgg assists individuals with improving their financial health, beginning with more affordable credit from “responsible” lenders.
In a new step for the industry, this partnership means credit unions may set their own risk appetite for credit card approvals by automating limits, which would be based on the credit profile of the borrowers.
As noted in the announcement, Optimus claims it has been at the forefront of this Credit Card strategy. The firm has reportedly been part of the Credit Union working Group within ABCUL, which led to the development of a framework on behalf of its members during the past 18 months.
This latest initiative is based on the Optimus Principles of the ownerships of the balance sheet, Credit Line, Risk and receivable belonging to the Credit Union
Lindsay Ward COO of Optimus Cards, said:
“This is a strong strategic move for Optimus. The collaboration with Adrian and the team at NestEgg has given us a clearer understanding of what the Credit Union sector needs. The further insights from the NestEgg systems means we can launch a flexible and robust credit card solution that is unmatched in the Credit Unions space. This Credit Card programme will empower credit unions to adopt a new service to their members whilst opening a new affordable borrowing loan book.”
Ward added:
“Optimus are providing a Credit Card on behalf of the UK Credit Unions in a very transparent and straightforward way. All the programme receivables are owned by the independent Credit Unions. The solution and the loan book are owned by the Credit Union and so is their consumer credit license, their risk and their portfolio P&L. It is an exciting time for Optimus.”
Adrian Davies, Co-founder of NestEgg, remarked:
“NestEgg is excited to be working in partnership with Optimus Cards to realise a long-held ambition of the credit union movement – providing a credit card to members. With 1/3 of credit union borrowers holding revolving credit elsewhere, the demand is proven. In fact, over two-thirds of members using revolving credit had near or prime credit scores. And once opened credit card accounts stay open; in most cases for more than six years.”
Davies added:
“We’ve been researching this opportunity with several credit unions. and were amazed to find that in some credit unions 94% of borrowers hadn’t missed a single repayment. The difficulty has always been how to make revolving credit work convenient for members. Now Optimus Cards can make this a reality.”
As a regulated CaaS (Cards as a Service) provider and Principal Member of Mastercard, Optimus Cards offers payment and banking solutions to regulated and non-regulated companies, from BIN Sponsorship to program managers, all the way through to fully managed card and banking solutions, the Optimus strategy is based on innovation, speed and flexibility, providing its solutions to mutual companies like credit unions and building societies.
Optimus Footprint and success is built on ecosystem integrations with numerous core banking platforms.
Following the research, NestEgg has developed automated decision-making for credit card applications.
This means credit unions are able to set their risk appetite for credit card approvals, automating limits based on the credit profile of borrowers.
At present, NestEgg is helping credit unions decide loan applications on a regular basis.