Credit scores + open banking features.
Image source: Credit Karma.
Intuit-owned credit scoring app Credit Karma is planning to add a host of new open banking features, following a new partnership with data provider Bud.
While the partnership might lead you to think Credit Karma is using open banking to improve its credit scoring, in fact, the features planned are all centred around consumer financial management.
“Credit Karma has been working hard to put customers in control, and to have to have full visibility of the factors affecting their credit score,” said Ziad El Baba, general manager of Credit Karma in the UK and Canada.
“Our new partnership with Bud marks a significant step forward in our campaign for greater transparency, providing us with a wealth of insight that gives customers more power over their financial future, while enabling banks to make better, more informed decisions.”
El Baba pointed to data aggregation and transaction intelligence among Bud’s services that Credit Karma will be using, with features planned to help consumers choose financial products and manage their bills better through in-app switching.
For Bud, this marks their second big customer win of 2021, with New Zealand’s largest bank ANZ NZ tapping up the UK fintech to help it automate more of its lending processes.
“We’re seeing a unique set of problems in the financial sector that are emerging at incredible speed and which all have one thing in common—you solve them with better data portability, better insight and more transparency. Without that, you don’t have a chance of addressing them,” said Bud’s CEO Ed Maslaveckas.
“Companies like Credit Karma are leading the way to a better and fairer financial sector, and our intelligence platform is playing a significant role in bringing about the open banking revolution.”
Maslaveckas appeared on AltFi’s Credit Transparency In Crisis webinar yesterday, where he spoke about how open banking is helping lenders measure credit risk and affordability.