Education lender Knoma has announced that it will use Fuse by Pave’s Open Banking insights to enhance credit decisioning through a new partnership agreement.
The partnership will enable Knoma to improve acceptances, making education more accessible for millions across the UK through interest-free financial solutions.
Open Banking data will empower Knoma to more accurately collect and assess affordability data for people seeking finance for education.
Knoma, which offers fee-free and interest-free finance solutions to support people to enrol on education courses, will use the income, expenditure, and risk insights provided by Fuse by Pave’s Open Banking platform to enhance its affordability and creditworthiness checks for prospective borrowers.
Sho Sugihara, CEO and Co-Founder, Fuse by Pave, said “We are delighted to be working with the team at Knoma, helping them progress their mission to make education more inclusive and affordable through interest-free finance at a critical time. Using Open Banking insights to inform the decision-making process will give Knoma the tools to expand its customer base safely, while enhancing borrower protections.”
“By removing the barriers to improve lending decisions, this approach provides more personalised products and boosts equality – all whilst reducing the number of defaulted loans, and ultimately protecting consumers.”
Brett Shanley, CEO and Founder, Knoma, comments: “Thanks to the Fuse platform, we now have significantly more confidence when it comes to making decisions on loan applications. Especially at times like these, when personal finances are so squeezed, it is critically important that we are lending safely and only to people who can safely afford to repay. Fuse has helped us to do just that.”
“We spent months researching the marketplace – landing on the right Open Banking partner was incredibly important and I am pleased to say that the research paid off. The quality of the data insights mean that we can rest assured we are doing the right thing by our customers, making education accessible in a safe way that presents no risk to their financial health.”