ClearScore acquires Aro Finance

ClearScore has announced that it has acquired Aro Finance, pending FCA approval.

Clearscore says that the acquisition also brings significant capability in secured lending by adding secured loan brokerage to its core proposition. Serving nearly 24 million users around the world, ClearScore’s proprietary technology platform works by matching users to credit cards, loans and car finance via a sophisticated mix of credit and affordability data, facilitated through credit reports and open banking amongst a wide array of alternative data.

The Aro Finance acquisition will provide the Group with greater choice for prospective borrowers, particularly as it builds and scales its unique debt consolidation loan technology, named ‘Clearer’. Announced in July 2024, Clearer allows direct settlement of consumer debts. This proposition eliminates the risk that funds are not used to pay off existing credit cards and loans by automatically paying off the loans for the consumer. Clearer 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 Finance is the Group’s second acquisition after Money Dashboard in 2022, bought for its expertise in identifying financial behavioural patterns through open banking. The Group 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 that are screened out through the traditional credit bureau infrastructure.

Aro 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.

Justin Basini, Co-founder and CEO of ClearScore, said “This acquisition allows us to continue our growth by expanding into two complementary areas as a credit broker, namely embedded finance and secured second charge lending. Diversifying our channels to market, and product range we can offer to our 24 million users, as well as our offering to our lenders, is an important step in our strategy. We see a significant growth opportunity in second charge mortgages, and this will be a critical part of our debt consolidation proposition and business growth going forward. The addition of Aro’s marketplace capabilities to the Group perfectly aligns with our existing data-driven approach and will allow us to reach new users through retail channels.

“ClearScore continues to be committed to our ability to serve more and more users with suitable offers of credit, and at the same time, continue to grow as a channel for our lender partners.”

Emma Steeley, CEO at Aro, said “This acquisition marks a pivotal moment in Aro’s journey. By joining ClearScore we become part of one of the most innovative global organisations in fintech. It is an exciting new chapter for the business, ensuring that together we continue to grow and deliver exceptional value for our partners, lenders and customers.

“With the clear business synergies and strategic data-led approach, I am confident that we will continue to engage with and serve many more customers with the strong breadth and depth of our combined product offerings.

“I am immensely proud of what we have achieved at Aro, and I am looking forward to what the future holds under ClearScore’s stewardship.”