D•One, the open banking unit of The ClearScore Group, has partnered with credit tech company Abound to enhance lending decisions using open banking data and AI.
This collaboration enables Abound to assess borrower affordability more accurately by leveraging D•One’s transaction categorisation prowess, aiming to broaden access to affordable loans while reducing credit risk.
London-based credit technology company Abound will take open banking data for prospective borrowers from D•One so that it can use that data to assess affordability for ClearScore users as soon as they search for a loan.
D•One supplies Abound with bank transaction data at the beginning of customers’ loan searches. This data is then processed by Abound’s AI credit engine, Render, to make more informed decisions, enabling broader access to affordable loans while significantly reducing credit risk.
“Open banking helps assess borrower risk more fairly, which is a positive innovation for the credit market,” said Tim Kelleway, director at D•One. “Abound is one of the most advanced lenders in the UK in terms of leveraging open banking data to drive greater financial inclusion. As Abound scales in the UK it is drawing on D•One’s specialist expertise in transaction categorisation to help make affordability assessments in milli-seconds.”
Michele He, co-founder and COO at Abound, also commented: “Traditional lenders are still relying on credit scores, which is a limited technology that excludes many low-risk people simply because they are credit invisible.
“At Abound we see open banking as a unique opportunity to transform lending and we have proved that this technology can help us both serve more people and improve credit performance. D•One and ClearScore align perfectly with our mission to expand access to affordable loans.”
The companies
D•One’s open banking services includes ‘Connection•One’, which provides a set of open banking connections in the market to over 50 financial institutions. A client uses it to power their open banking sign-up and authorization process, and D•One can either white-label or fully manage it.
While the second product, ‘Category•One’, is a transaction categorisation engine which lets clients classify and analyse bank account transactions.
Abound, founded in 2020, uses open banking and AI to provide borrowers with fair loans based on ‘what they can afford to repay’.
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