2 finalists of the government’s Rent Recognition Challenge have launched a partnership designed to help renters become more creditworthy and get on the property ladder.
Users of the Bud financial network will now be able to access the CreditLadder rent recognition service directly from within their banking apps, meaning renting customers can have their monthly rental payments added to their credit history.
The partnership takes advantage of the recently-introduced Open Banking initiative, which enables bank customers to share their spending data with third parties should they wish to, and access a wider range of financial products and deals.
Bud offers a connected network that helps banks to collaborate with fintechs on creating new experiences for their customers. It’s a service that Bud has developed and piloted with HSBC/First Direct since February 2018.
CreditLadder is the UK’s first rent recognition platform that enables renters to add their payments to their credit history. Working with credit reference agency Experian, CreditLadder has reported over £25m in rent since launch.
Both companies were final stage winners of the HM Treasury’s Rent Recognition Challenge, created to help fund and develop fintech platforms to enable tenants to improve their creditworthiness and get on the property ladder. CreditLadder, Bud, and RentalStep each won a share of the £2m prize fund.
Alan Walsh, who works on network and partnerships at Bud, said: “About 80% of our team rent their homes, it’s their biggest monthly outgoing and they have long histories of making those payments on-time, month after month. It was just wrong that this data couldn’t be used to help them achieve what they wanted in life so it’s great to be working with the team at CreditLadder to address the situation.”
CreditLadder CEO, Sheraz Dar, added: “There is huge momentum within both the banking and tech sectors at the moment to help a greater number of people access more affordable credit, and our partnership with Bud is a ground-breaking initiative that builds on this.”
Read more about the Rent Recognition Challenge here.
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