By Aisling Finn on Thursday 15 October 2020
The two companies will bolster Zilch’s affordability and creditworthiness checks through Credit Kudos’ open banking service.
Buy-now-pay-later platform Zilch has partnered with credit referencing agency Credit Kudos in a bid to shake up its credit assessment process.
The fintech has chosen Credit Kudos’ open banking platform to promote what Zilch says is responsible lending to its customers.
Through the new partnership, Zilch will be able to bolster its affordability and creditworthiness checks by using open banking data to access a customer’s financial information without having to perform a ‘hard credit check’.
Philip Belamant, founder and CEO of Zilch, said: “Traditional credit checks feel a bit like driving a car whilst looking in the rear-view mirror.”
However, he says that thanks to open banking Zilch can better protect its vulnerable customers by ensuring they get the best deals and service.
“Credit Kudos’ Open Banking empowered technology has been instrumental in helping us lead the charge in the sector as one of the first major BNPL players doing so, ensuring proper affordability checks and responsible lending to our customer base,” Belamant added.
Buy-now-pay-later platforms have become increasingly popular, with the sector growing by 39 per cent each year according to research from Worldpay, as more and more people turn to alternative financing options for their purchases.
Freddy Kelly, co-founder and CEO of Credit Kudos, added: “Individuals can now help lenders better understand their circumstances by securely sharing their financial information with their selected provider.”
“Now more than ever, real-time Open Banking insights are crucial in helping lenders lend responsibly, providing fairer credit for all.”
Zilch offers its customers a Mastercard-backed buy-now-pay-later card that allows them to shop online at any retailer, spreading the cost of their purchases over several instalments.