Unlike a traditional credit assessment, Credit Kudos uses Open Banking data to provide a holistic, up-to-date view of both individuals’ and business’ finances. This helps lenders understand the current financial position of the applicant and offer them the right lending at the right time – something that has become even more important during the pandemic.
Through this partnership, Atom will use Credit Kudos’ categorisation and risk insights to automate underwriting assessments, enabling real-time decisions and improving the customer experience compared to traditional paper based processes. The Durham based bank will be able to immediately verify income and understand what credit repayments a small business can afford.
The partnership between Atom and Credit Kudos will initially focus on secured small business lending with plans to expand this to unsecured business lending and to support its residential mortgage lending by the end of 2021.
In future, these enhanced insights will also allow Atom to offer loans to smaller and younger businesses which do not have assets to secure against finance, and Credit Kudos’ predictive forecasting will help Atom reduce the risk of defaults.