"The greater insights are empowering us to make better informed, faster lending decisions to more people."
The partnership utilises Open Banking data to speed up LendInvest's time-to-decision and to enhance affordability and credit risk assessments.
LendInvest says it has already seen a 50% reduction in assessment times, with underwriting times for the applicant’s financial history review reduced to just five minutes.
Credit Kudos uses Open Banking data to provide lenders with a holistic, up-to-date view of an individual or business’ current financial situation. Leveraging both bank transaction data and loan outcome data, it produces insights to help lenders make more informed credit decisions.
Open Banking insights are also helping LendInvest open up its offerings to a wider audience, such as self-employed and sole traders who may not have conventional income patterns. The faster application process has also delivered a 26 percentage point increase in Open Banking conversion rates since going live in February.
Arman Tahmassebi, COO of LendInvest, commented: “Getting rid of the manual documentation process has allowed us to offer a far faster and more convenient service. Although we have been using Open Banking for two years, this new partnership with a like-minded fintech has allowed us to take it to the next level and really reap the benefits of the technology.
“The greater insights are empowering us to make better informed, faster lending decisions to more people. We have been particularly impressed with the seamless integration of Credit Kudos into our system - the new dashboard is highly intuitive and it's already helping us serve more customers.”
Credit Kudos founder and CEO, Freddy Kelly, added: “Like LendInvest, we are committed to making credit applications smoother and fairer for both the lender and applicant, so this partnership is a natural fit.
“Open Banking technology is transformative for lenders who want to make smarter and faster decisions to better serve their customers. With our technology in place, lenders can automate the underwriting process and get a far more accurate picture of an applicant’s true financial position. It not only helps them lend responsibly but also opens up their service to underserved customers who may not have traditional income patterns, such as sole traders.”
