LONDON–One fintech here that plans to partner with a credit union has been selected as a finalist in the government-sponsored “Affordable Credit Challenge,” a £1.5 million challenge that seeks to encourage U.K, fintechs and community lenders to work together in order to access alternatives to high-cost short-term credit.
Selected as a finalist is Credit Kudos, which said it has developed a reward loan solution with Police Credit Union Ltd. The reward loan solution aims to utilize open banking to supervise a borrower’s behavior and reduce the payable interest rate, according to IBS Intelligence.
“Our reward loan solution, created with Credit Kudos, will help us support even more members and reward them for healthy financial behaviors,” said Paul Norgrove, CEO of Police Credit Union. “Using open banking derived scores, the solution will automatically adjust the interest a borrower pays during the life of a loan. This means borrowers from the police, military, and wider protective services family can proactively and positively impact their own financial situation.”
Norgrove was recently featured in CUToday.info here.
Separately, Credit Kudos has also developed another solution, Salad Money, that aims to offer affordable loans paid through payslip deductions, which is achieved through open banking and artificial intelligence for the improvement of credit decisioning.