NEW YORK—Credit scoring service and marketplace ClearScore has launched a business-to-business unit to help U.K. lenders tap into open banking data for lending decisions.
The development comes as open banking is slowly looking to take root in the United States, with the CFPB announcing in 2022 it will be encouraging open banking initiatives and regulations.
Built on ClearScore's recent acquisition of Money Dashboard, the new unit, called D•One, promises to help credit card providers and banks accelerate consumers’ bank data into mainstream lending, Finextra said.
D•One combines two products: Connection•One, which provides open banking connections to 46 financial institutions, and Category•One, a transaction categorization engine which allows clients to classify and analyze bank account transactions, the report explained.
ClearScore says that the two core services enable D•One to successfully identify a range of financial behaviors, offering the ability to split risk, or more accurately categorize the riskiness of borrowers, according to FinExtra.
The firm says lenders can tap these key indicators to identify less risky potential borrowers that might otherwise have been declined based on credit score data alone, Finextra added.
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