Jaja Finance, the digital-first, insights-driven lender, is improving how many people will be able to take out loans by extending the data variables used in the credit decisioning process. This has been made possible following a new partnership with D•One, the open banking services business from The ClearScore Group.
Jaja Finance will now be able to utilise open banking connectivity and transaction categorisation intelligence to ensure better outcomes for its customers and, in turn, enhance financial inclusion, following the D•One partnership. The open banking services provider will provide Jaja the ability to integrate consumers’ banking data into mainstream lending decisions as well as deliver more accurate income verification, risk insights, and affordability assessments.
The smarter decisions will be facilitated by D•One’s use of a unique combination of extensive open banking records and credit expertise to drive immediate value for its lender clients. This includes identifying positive and negative risk indicators otherwise obfuscated in the transaction data, thereby ‘splitting’ the risk level of applicants and enabling up to a 60 per cent reduction in arrears with no reduction in lending volume.
Francesco Di Costanzo, chief executive officer at Jaja, said: “Partnering with D•One to enhance our open banking offering is not just a strategic move for Jaja; it’s a commitment to offering our customers simple, fair and efficient credit. This partnership is the next step in demonstrating our dedication to innovation and inclusivity.
“At Jaja, we continuously explore new data sources and innovative approaches to better serve our customers. Leveraging D•One’s capabilities with our advanced analytics and risk models marks another milestone in transforming credit analytics for their benefit.”
Expanding data for greater financial inclusion
D•One has helped participating lenders expand their risk decision-making beyond a reliance on credit reference agencies alone, enabling them to lend fairly and responsibly to financially excluded segments of society at a time where living costs have been escalating rapidly. In the last 12 months, D•One’s open banking data has enabled approximately 120,000 consumers to receive an affordable loan that would otherwise have been declined.
Commenting on the Jaja partnership, Tim Kelleway, managing director at D•One, said: “Jaja is leveraging our enriched dataset to better understand financial behaviours and bring about more inclusive and sustainable lending decisions. This past year, we’ve seen a huge engagement with our proposition, and we’ve signed up some of the UK’s most successful fintechs. The work we are doing here with our lender partners is undoubtedly changing the shape of credit decisioning in the UK, for the good of lenders and consumers.”
