ClearScore expands into embedded finance with Aro Finance acquisition

By Gloria Methri

The ClearScore Group has acquired Manchester-based FinTech Aro Finance, expanding beyond direct-to-consumer services. This acquisition introduces a B2B2C channel through embedded finance with top UK retailers and adds secured loan brokerage to ClearScore’s offerings.

ClearScore serves 23 million users globally with its proprietary platform, matching them to credit cards, loans, and car finance using a combination of credit, affordability, and alternative data, including credit reports and open banking.

Aro Finance is the Group’s second acquisition after Money Dashboard Ltd in 2022, bought for its expertise in identifying financial behavioural patterns through open banking. ClearScore integrated this technology, upon which it built and launched D•One, an open banking service for lenders to enhance the underwriting process, manage risk more effectively and identify low-risk borrowers.

Aro Finance operates a credit marketplace proposition embedded within affinity partners’ digital infrastructure, including household names such as Argos, Very.co.uk and Asda. The addition of ClearScore’s existing financial services partners to this offering will provide many more lending choices embedded in the retailers’ digital channels.

The acquisition will provide the ClearScore Group with more choices for prospective borrowers, mainly as it builds and scales its unique debt consolidation loan technology, named ‘Clearer’. Announced in July 2024, Clearer allows direct settlement of consumer debts. Its users will ultimately have access to both unsecured and (post the integration of Aro) secured loans, potentially helping hundreds of thousands of borrowers in the UK better manage debt and improve their financial circumstances.

Aro’s third business stream is a ‘point of need’ service to lenders which helps users rejected for credit find suitable alternatives. This is a crucial element of post-application care, which the FCA now expects, and by providing a comprehensive lending panel, more consumers will be able to find the credit they need.