By John Reynolds on Thursday 28 November 2019
The bank said it will use machine learning to tailor loans to individual customers.
The Co-operative Bank has launched a loans service, which it says will use machine learning to tailor loans to individual customers.
The bank has teamed up with Freedom Finance, the personal loan broker, on the service.
The Co-op said through machine learning and its technology, customers will be able to carry out a search of unsecured personal loan options which will not negatively impact their credit rating.
The Co-op said it has tailored a panel of lenders, which excludes payday lenders.
Loans will be available form £1,000 to £25,000 over a period of one to seven years, with interest rates ranging from 3.1 percent APR to 39.9 APR.
The bank said applicants will be able to receive funds on the same day as they apply for loans.
Brian Brodie CEO of Freedom Finance, said: “Our highly personalised lending platform allows our partners to strengthen their offering in a highly competitive market, and we are delighted to have the opportunity to work hand-in-hand with a bank for the first time to co-create a personalised digital journey for its customers.”
“Our service presents customers with loans they are eligible for, including actual repayment schedules, to help borrowers understand their commitment and make better informed decisions.”
Tracey Harrop, Product Lead for Unsecured Lending at The Co-operative Bank, said: “We have entered into this relationship with Freedom Finance to create our Loans Marketplace and provide consumers with access to lending options from a broad range of loan providers.”
“We know many of our customers seek finance to help them afford key purchases or consolidate existing debt and with Loans Marketplace they will be able to complete one soft search of our select panel of lenders to find personal loan options most suited to their needs without negatively affecting their credit profile.”