Yobota, the cloud-based banking platform provider, has selected leading fintech, Credit Kudos, as its open banking credit bureau, allowing Yobota customers to significantly improve affordability and credit risk modelling.
Currently, financial institutions are operating on complex, legacy technology architectures many of which were developed in the 1970s/80s. This not only increases operational cost and risk but also reduces their ability to innovate. The Yobota Platform removes these barriers and allows financial institutions to offer better products and services by connecting a client’s bank automatically to state-of-the-art APIs.
The addition of Credit Kudos to the Yobota Platform provides Yobota’s clients with new decisioning models and product opportunities by allowing them to redefine their overall lending strategies and approaches. Credit Kudos is a challenger credit bureau, disrupting the traditional, outdated methods of credit risk profiling by accessing more accurate, real-time data.
Using open banking data, Yobota’s clients will have access to additional, more up-to-date information than was previously available to them through traditional credit bureaus. This includes real-time income and expenditure, as well as an indication of someone’s future liquidity. Importantly, it delivers more precise and refined risk and affordability measurements to lenders, thereby saving time, increasing accuracy and reducing operational costs.
In turn, customers of Yobota’s clients who are searching for new credit — including the traditionally underserved — will be able to source new, bespoke product offers by securely sharing data from their bank account. This sharing of financial information will increase the chances of them being approved for credit when they previously may have been turned down and could also help them get a better deal.
Ammar Akhtar, CEO and founder, Yobota, comments: “As a rapidly growing fintech company, our faster and flexible cloud-based operating platform allows our clients to create and run innovative financial products faster than other core banking providers. We are therefore delighted to be partnering with Credit Kudos, a leading fintech provider which shares our goal to modernise the financial sector through transformational technology. Credit Kudos’ solution allows our clients to establish a competitive advantage by offering a superior creditworthiness check — using open banking data to help them make better, faster and fairer decisions.”
Freddy Kelly, CEO and co-founder of Credit Kudos, comments: “Forward-thinking companies such as Yobota are revolutionising banking and the banking experience for customers. By working together, we can support Yobota’s clients in becoming more agile and innovative in a new open banking economy. This partnership will make it easier for Yobota’s clients to incorporate open banking into their application, affordability and credit models and make faster, more informed decisions about lending to help them increase acceptances and reduce defaults among customers.”
Yobota existing clients that will have access to Credit Kudos’ solution include high profile names such as Chetwood Financial — the only new bank to be fully authorised by the UK’s Prudential Regulation Authority in 2018. Chetwood’s LiveLend, powered by Yobota Platform, was recently named Best Lender Innovation 2020 by Moneynet.