After nine months of searching for the organisations who are helping to create a better personal lending market in the UK, we are pleased to reveal the winners of the Affordable Credit Challenge! Three partnerships between community lenders and fintechs have secured a cash prize of £200,000 each for developing innovative solutions that make credit more accessible and affordable.
The winners are:
Capital Credit Union in partnership with Nivo and Soar
Capital Credit Union is working in partnership with Soar and Nivo to build an end-to-end member journey that will encourage more people to join credit unions. This solution will bring credit unions to new audiences, particularly financially excluded and younger people providing them opportunity to save and gain access to affordable credit.
Their solution will harness the latest mobile-first digital financial technology in enabling a full end- to-end member journey, continuing our member focused ethos, through the perfect blend of efficiency, speed and human support to those who would otherwise struggle to get access to affordable credit.
Fair for You in partnership with EML & Lending Metrics
Described as a ‘school holiday buffer scheme’, this solution is a structured revolving facility that provides modest credit under £100 to ease pressure in lower income family households through school holidays, when there is a spike in the use of high cost short term credit and foodbanks. A flexible and supportive weekly payment option to purchase an additional freezer shop at the start of each school holidays.
Police Credit Union in partnership with Credit Kudos
Police Credit Union wants to provide customers who would normally not be able to access credit with a new reward loan.
The reward loan will use Open Banking to monitor the borrower’s behaviour and dynamically reduce the interest rate they pay. This approach will allow more customers to access fair credit whilst reducing risk for community lenders and enabling lenders to process a higher total volume of applications. The team believes that reward loans will be an important, scalable innovation which measurably increase access to affordable credit. With backing from the Challenge, Police CU and Credit Kudos will bring this innovation to market.