UK challenger Zopa taps ClearScore’s D•One for open banking-powered credit assessments
UK digital bank Zopa has expanded its existing partnership with ClearScore Group to power consumer credit assessments with open banking technology.
Zopa partners D•One for open banking services
The challenger first teamed up with the credit marketplace two years ago to launch its 2025 Fintech Pledge initiative, with the aim to provide UK consumers with “10 million positive actions” to help them build up their financial resilience.
Now Zopa has turned to the group’s open banking business unit D•One for “open banking connectivity and transaction categorisation intelligence”, according to a statement.
The partnership with D•One will initially focus on the digital bank’s loan origination journeys, increasing its ability to accurately identity a consumer’s suitability for credit cards, loans, car finance and other products contained within its lending portfolio through the aggregation of spending data.
Zopa reported a pre-tax profit for FY 2023 of £15.8 million in April, with a 29.7% rise in total revenues to £226 million.
Although this financial performance was partially due to a 14.9% increase in deposits to £3.4 billion, Zopa also attributed the success to a larger 27.3% rise in loans on balance, which currently stands at £2.7 billion.
The installation of D•One’s technology is expected to broaden the scope of Zopa’s lending ability even further to consumers whose limited credit histories have typically excluded them from traditional credit options.
D•One previously extended the same technology to NewDay, a consumer credit provider also based in the UK, in 2022.
