By Aisling Finn on Thursday 21 May 2020
The sandbox is designed to demonstrate the ease of introducing new, disruptive technology to traditional banking models.
The term ‘sandbox’ originates from the idea of children playing in a controlled environment. In the world of fintech, it means a place for emerging fintechs to test their new models without fear of violating financial regulation.
The FCA-regulated fintech offers an alternative way to measure creditworthiness using open banking data instead of historical borrowing information. Through using Credit Kudos’ platform banks and financial institutions can redefine their overall lending strategies and approaches with new decisioning models and products.
Freddy Kelly, CEO and co-founder of Credit Kudos, said: “PwC’s digital banking ecosystem is an important milestone in the banking sector as the power of open banking data gains momentum, and we’re excited to be a part of this journey.”
“This is the start of an important and positive change to the financial sector, showing how financial institutions can evolve quickly and effectively through partnerships,” he added.
Fintechs have long proved how nimble and effective they can be, with analysis from PwC suggesting that technological changes in the banking sector could bring a boost of more than £34.6bn to the UK economy by 2030.
The news comes after Credit Kudos had a stellar start to 2020 closing a £5m Series A funding round, which featured several fintech angel investors such as Christian Faes, founder of LendInvest, and Charlie Delingpole, who founded both ComplyAdvantage and MarketInvoice.
In 2019 the company expanded its client base, adding over 50 new lenders ranging including ClearScore, CarFinance 247, and Mojo Mortgages, allowing customers to use their bank data to secure better offers across unsecured loans, car finance and mortgages.