TransUnion has invested in British open banking and data intelligence firm Bud Financial Limited.
The global information and insights company said in a Tuesday (Jan. 31) press release that this partnership will drive innovation in the personal finance market and greater financial inclusion among consumers.
“This strategic investment marks the start of an exciting new partnership with Bud, combining our global infrastructure and insights expertise with Bud’s end-to-end open banking platform,” Satrajit Saha, CEO of TransUnion in the United Kingdom, said in the release. “This will allow us to grow our open banking offering and jointly develop the next generation of credit, affordability and fraud solutions.”
As PYMNTS reported Jan. 9, data underpins a fairer market in the credit market. A recent study by the Consumer Financial Protection Bureau (CFPB) found that a wealth of complaints in credit reporting are tied to inaccurate or incomplete data.
If the data coming into the reporting firms is lacking, it leads to ineffective credit scoring that conceivably curtails financial inclusion.
With the addition of current and even real-time inputs as ancillary sources of information, a reporting agency’s ability to score risk is enhanced.
In Europe, the open banking players now cover much of the continent. Over the years, open banking companies have expanded their reach and entered new markets by snapping up smaller rivals, while established payment players have acquired open banking providers rather than building their own technical capabilities from scratch.
In the case of Bud, the firm’s clients use its platform to onboard customers and provide personal financial management services, and its income and employment verification, affordability assessments and ongoing transaction monitoring to power their lending, according to the press release.
With these services enabled via open banking, finance providers can better serve applicants who don’t have a detailed credit history or who have had trouble accessing credit, the release said.
“By partnering with TransUnion, we’re able to combine advanced data intelligence capability with TransUnion’s expertise in financial services,” Bud CEO Edward Maslaveckas said in the release. “This will drive improved return on investment for all of our customers, by connecting more people, through the banks they trust, to financial products that make their lives better.”
PYMNTS Data: Why Consumers Are Trying Digital Wallets
A PYMNTS study, “New Payments Options: Why Consumers Are Trying Digital Wallets” finds that 52% of US consumers tried out a new payment method in 2022, with many choosing to give digital wallets a try for the first time.
