FinTech lender Blue is partnering with credit reference provider Credit Kudos with the aim of increasing acceptances by leveraging Open Banking insights.

Blue, which provides motor finance solutions for more than 150,000 customers, said it will leverage Credit Kudos’ transaction data and insights via an API integration with Blue’s underwriting system, which will enable the company to better assess an applicant’s creditworthiness and affordability.

Blue said the deal also enables a move away from the manual collection of documents and uploading of bank statements to a faster, more secure application process through Open Banking.

Credit Kudos is a credit reference agency that combines Open Banking data with positive and negative credit outcome data to build credit risk insights, providing lenders with more accurate, up-to-date information.

Credit Kudos said it uses Open Banking data to help lenders make a more informed decisions and increase lending safely to previously underserved segments .

Tiku Patel, chief executive of Blue, said: “Blue has been revolutionising the used car market by applying tech, data and analytics to deliver high levels of acceptances across the risk spectrum, fast decisioning and high levels of convenience.

"By partnering with another FinTech, we can harness Credit Kudos’ insights to get a better real-time picture of affordability and allow us to lend responsibly to even more people, including under-served segments.”

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