back Back

Fair4All Finance and ClearScore partner on debt consolidation technology

By Gloria Methri

July 12, 2024

  • Affordable Credit
  • Clearer
  • Clearscore
Share

ClearScore, Fair4All Finance, Debr Consolidation Technology, Lending, FinTech, UKFair4All Finance has partnered with ClearScore to develop debt consolidation loan technology that will boost access to affordable credit for people in financially vulnerable circumstances.

ClearScore’s proposition ‘Clearer’ allows direct settlement of consumer debts, unlike most other debt consolidation loans. This eliminates the risk of funds being used to pay off existing credit cards and loans.

It is expected that rolling this new debt consolidation proposition will significantly expand access to loans, reduce interest rates paid by borrowers, reduce risk for lenders and ultimately help thousands of borrowers.

The funding, linked to Fair4All Finance’s consolidation lending pilot, will be used partly for development costs to build an automated debt consolidation solution that can be used on the ClearScore marketplace, white-labelled for third-party online marketplaces and used in lenders’ direct channels.

Kate Pender, Deputy CEO of Fair4All Finance, said, “We are delighted to be working with ClearScore on their new Clearer proposition and with the lenders who use it to reach people in financially vulnerable circumstances. Debt consolidation lending can reduce people’s monthly outgoings and cut the amount of interest they must pay overall. This direct settlement technology will ensure more people are able to access a consolidation loan, improve their creditworthiness and steer clear of problem debt.”

“We look forward to seeing how Clearer can scale over the coming years and help people in financially vulnerable circumstances pay materially less for their existing debt.”

Andy Sleigh, COO of ClearScore, said, “This funding represents a significant step forward for the expansion of debt consolidation lending in the UK. Our model suggests that many thousands of additional borrowers will be able to access a debt consolidation loan within the next few years, with our users experiencing an improvement in their creditworthiness and reducing their level of indebtedness. This kind of impact on financial mobility cannot be understated and aligns perfectly with the FCA’s focus on increasing access to affordable credit and good consumer outcomes as part of Consumer Duty.”

Previous Article

July 12, 2024

FinTech Focus: Catch latest developments of the week

Read More
Next Article

July 12, 2024

Nuvei and Mastercard team to enable crypto to fiat conversion

Read More






IBSi FinTech Journal

  • Most trusted FinTech journal since 1991
  • Digital monthly issue
  • 60+ pages of research, analysis, interviews, opinions, and rankings
  • Global coverage
Subscribe Now

Other Related News

February 07, 2025

Galoy unveils Lana to offer Bitcoin-backed lending for banks

Read More

February 04, 2025

Veefin Group acquires UAE-based TradeAssets to expand its offerings

Read More

February 03, 2025

Budget 2025: Indian MSMEs get $17m credit boost; experts call it game-changer

Read More

Related Reports

Sales League Table Report 2024
Know More
Global Digital Banking Vendor & Landscape Report Q4 2024
Know More
NextGen WealthTech: The Trends To Shape The Future Q4 2023
Know More
IBSi Spectrum Report: Supply Chain Finance Platforms Q4 2023
Know More
Treasury & Capital Markets Systems Report Q4 2024
Know More