24 Feb TransUnion partners Bud to support Open Banking growth

Insights and information company TransUnion has announced an investment in UK-based Bud Financial Limited to support Open Banking growth.

TransUnion’s partnership with Bud Financial Limited aims to support financial inclusion, as well as innovation and growth in the personal finance market. According to financialit.net, when it comes to personal finance and automated income verification, Open Banking is becoming more and more important.

With Open Banking, finance providers are able to better verify the income of applicants, including those who may not have a detailed credit history, or have had trouble accessing credit in the past. These systems provide an alternative to manual, often resource-intensive processes. Bud caters specifically to those who might otherwise have trouble accessing credit, as its platform provides access to affordable and appropriate lending products.

TransUnion representatives acknowledged Bud’s expanding global presence and highlighted a series of opportunities to create new solutions that can be transferred to other TransUnion markets. Through this partnership, TransUnion’s global infrastructure and insights expertise will integrate with Bud’s end-to-end Open Banking platform in order to expand TransUnion’s Open Banking offering.

Bud helps its clients to transform complex financial data into services that fuel growth. Clients can leverage Bud’s platform to improve their customer onboarding experience and personal financial management services. As a result, they can register an increase in engagement and loyalty. Bud’s aggregation and categorisation services support the lending market through income and employment verification, affordability assessments, and transaction monitoring.

TransUnion’s new Credit Monitoring Service Packages

In January 2023, TransUnion has launched a new suite of Credit Monitoring Service Packages, in order to promote financial inclusion. The  credit monitoring service packages comprise a Credit Report, a Credit Score Calculator, an in-depth Debt Analysis, as well as a Credit Alert service that helps to prevent identity theft.

According to a recent study conducted by TransUnion, 34% of consumers who constantly monitored their credit reports for at least 12 months saw an improvement in their credit scores. A good credit score is important for those who want to benefit from lower interest rates and save money in the long run.

The report reveals that a Super Prime Score (AA) consumer benefits, on average, of a 4.8% annual percentage rate (APR) for personal loans, as opposed to those with a Near Prime Score (DD, EE, or FF), who will have to pay up to 19% APR to get the same loan.