Experian has announced that Oakbrook, a non-bank provider of consumer lending solutions, will now be using Experian Boost data in its decisioning process for personal loan applications.
This partnership will increase access to credit “for customers who traditionally may not have been eligible – driving financial inclusion and offering more competitive loan options.”
Experian Boost is the UK’s first service to “help consumers improve their Experian Credit Score using transactional information like total current account incomings and outgoings, as well as regular payments to digital streaming providers, savings accounts, and council tax.”
The partnership with Oakbrook further “supports Experian’s mission to improve financial inclusion for consumers, as Boost users could now have access to more credit options than they would have otherwise.”
Customers can connect to Experian Boost via Open Banking1, voluntarily “adding new, relevant, and real-time information to help improve their Experian Credit Score.”
Oakbrook connects with their customers “through various comparison websites.
These websites help consumers see “a panel of potential loan options, including pre-approved loans from Oakbrook.”
Experian Boost helps power these eligibility results “on affiliate sites, giving a clearer picture of a borrower’s creditworthiness in the UK. Boosted Experian Credit Scores are again factored into the final loan application decision on the Oakbrook site.”
By incorporating Experian Boost data into Oakbrook’s eligibility and “full decisioning process, alternative data sources can be used to boost their Experian Credit Scores.”
This allows them to identify borrowers “who traditionally may not have been eligible for a loan. Also, by incorporating Boost data Oakbrook now has a more complete picture of consumers’ financial health, which could potentially lead to more competitive loan offers.”
This partnership follows an update to how “the size of the score boost is determined. Experian Boost users can now increase their Experian Credit Scores by up to 101 points, which could mean a customer moves up two score bands.”
Previously, the maximum increase “was 66 points. Recent data shows that Boost has helped customers save an estimated £1.3m through Boosted credit card and loan offers on the Experian Marketplace.”
