Credit card startup Yonder has partnered with open banking platform Yapily to give consumers access to credit without needing a UK credit score.
According to a recent study by Experian, over 5 million people in the UK – 9% of the total adult population – have little to no credit history, severely limiting their access to mainstream financial services. Together, Yonder and Yapily are tackling this problem by using Open Banking to create a more accurate, complete, and equitable way of assessing a consumer’s financial footprint.
With customer consent, Yapily Data enables Yonder to pull individual bank account information and analyze factors such as income and expenses to create a more holistic credit profile. This has the potential to transform access to finance for millions of “credit invisible”; the expat finds it difficult to open a bank account; the immigrant struggling to rent a property; the young person who does not yet have a credit report.
In addition to higher approval ratings, Yonder customers benefit from no exchange fees when spending abroad, access to lifestyle rewards, and a way to improve their credit score with on-time monthly payments. Powered by Yapily Payments, Yonder customers also benefit from a direct, instant and more secure account-to-account open banking payment method when withdrawing their funds.
Tim Chong, co-founder and CEO of Yonder, said: “Unfair credit scoring methods, old app experiences and vague pricing techniques are a thing of the past. With Open Banking we are bringing back fairness and equality to the lending industry. Yapily’s technology and open banking know-how are helping to make this vision a reality.”
Stefano Vaccino, Founder and CEO of Yapily, added: “This is another excellent example of how Open Banking is helping to serve the underbanked population by making financial products accessible to those who previously might not have been able to.” It’s great to see innovative companies like Yonder challenging traditional systems of credit and joining us in our mission to create better and fairer financial services for all.”
https://techround.co.uk/news/yonder-and-yapily-team-up-to-help-5-million/?utm_source=rss&utm_medium=rss&utm_campaign=yonder-and-yapily-team-up-to-help-5-million Yonder and Yapily team up to help 5 million “credit invisibles” through open banking