The 247 Group, operator of the UK’s largest online motor finance marketplace, CarFinance 247, alongside lender 247 Money, today announces the launch of 247 Connect. This new service will invite consumers with specialist considerations around credit worthiness and affordability to make use of Open Banking, allowing for the enriched exchange of banking data that has long been the preserve of high street banks.
In partnership with Credit Kudos, 247 Money is the first lender in the motor finance industry capable of using Open Banking in their decisioning process. Integrating Open Banking data with the company’s highly predictive risk management engine and Artificial Intelligence (AI) machine learning marks a crucial step-change in the 247 Group’s technology and underwriting approach. Ultimately, it allows 247 Money to say “yes” to more consumers looking to secure finance for their dream car.
Open Banking enables consumers to use the power of information they already own to leverage greater access to financial products. It is a fast, simple, and secure way for consumers to authorise third parties, such as 247 Money, to view and analyse select data from their bank accounts. Open Banking is trusted by all major UK banks and building societies and can be used by consumers to interact with a range of financial services companies. Consumer use of Open Banking doubled in 2020, demonstrating the reliability of the service.
In announcing the launch of 247 Connect, Reg Rix, Chief Executive of the 247 Group, commented: “With over 15 years’ of experience in the motor finance industry, we probably understand better than most that current methods of credit score assessment have limitations when dealing with consumers’ complex financial circumstances. Consumer banking data has, for too long, been solely the preserve of the high street banks. With Open Banking, consumers can give us permission to access that data, enabling 247 Money to offer more loans to more people.
“Our Group’s purpose is to help people improve their everyday lives and with 247 Connect we have found a solution for underserved consumers that view access to a vehicle as an essential, not a luxury. We’re proud that 247 Money will be the first lender in our industry capable of using Open Banking data to enhance the credit decisioning process, responsibly opening up products to consumers who may be refused elsewhere.”
Daniel Graham, Chief Technology Officer of the 247 Group, further commented: “Open Banking has been hailed as one of the biggest innovations in banking since credit files. With the launch of 247 Connect, 247 Money will be the industry’s first lender to use Open Banking to enhance credit decisioning. As a Group, we’re committed to using technology and the digital consumer experience to make the car buying journey as seamless as possible. Open Banking opens up a data set that previously wasn’t accessible and allows 247 Money to lead the way in the motor finance industry.”
247 Connect and Open Banking will be offered as an option for consumers who would not be approved through traditional credit score assessments alone. This will benefit consumers with little or no credit history and those who have had credit issues in the past – but all with their express permission. Open Banking will not be a requirement for the majority of consumers applying for credit through CarFinance 247.