Salad Money says that its Salad Technologies, part of the Salad group, has been approved by the UK’s FCA as an official Account Information Services Provider (AISP).
The accreditation means Salad can access applicants’ Open Banking data directly rather then through a licensed third party.
They currently access this data, with applicants’ permission, to enable them to make “fair” lending decisions.
They analyze the information it provides about income and expenditure ourselves via their machine learning system, “supported by their in-house team.”
As noted in the update, AISP registration requires a business to “demonstrate it meets very high standards across multiple areas, and it has taken Salad almost a year of effort to secure the first AISP license the FCA has ever granted to a CDFI lender.”
They are pleased that their team can now move forward with plans which will boost their customers’ financial resilience and they thank the UK’s Financial Conduct Authority (FCA), alongside all of their customers and partners, for their “trust in how we operate our business.”
As noted by its management, Salad Money is “putting a stop to toxic loans.”
They explained that public sector workers are being “ripped off by toxic loan companies.” Salad Money is here to “change that.”
They claim to provide small, affordable loans to “meet people’s urgent needs now, and help develop their financial well-being so they can make good decisions with money in the future.”
They are a for-profit social enterprise: the first “responsible” lender of their kind.
They believe lending should be “fair” and everyone should be “treated equally.”
According to the firm, many people struggle when faced with “unexpected costs.”
Rather than take advantage of “money misery,” they want to end it.
They offer loans of between £500 and £1000, paid back “over 12 or 18 months to public sector workers in the UK.”
The application process is said to be “quick” and repayments are made via payroll or Direct Debit. By using Salad Money people can reportedly “avoid extortionate payday lenders and unplanned overdraft fees.”