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Experian and Oakbrook partner to give consumers more competitive loans

Experian and Oakbrook partner to give consumers more competitive loans

• Experian Boost data will now be included in Oakbrook's decisioning process giving Boost users more loan options

• Recent data shows that Boost has helped customers save an estimated £1.3m through Boosted credit card and loan offers on the Experian Marketplace³

UK, 9th September 2024 - Experian has today announced that Oakbrook, a non-bank provider of consumer lending solutions, will now be using Experian Boost data in its decisioning process for personal loan applications. This partnership will increase access to credit for customers who traditionally may not have been eligible - driving financial inclusion and offering more competitive loan options.

Experian Boost is the UK's first service to help consumers improve their Experian Credit Score using transactional information like total current account incomings and outgoings, as well as regular payments to digital streaming providers, savings accounts, and council tax. The partnership with Oakbrook further supports Experian's mission to improve financial inclusion for consumers, as Boost users could now have access to more credit options than they would have otherwise.

Customers can connect to Experian Boost via Open Banking¹, voluntarily adding new, relevant, and real-time information to help improve their Experian Credit Score. Oakbrook connects with their customers through various comparison websites. These websites help consumers see a panel of potential loan options, including pre-approved loans from Oakbrook. Experian Boost helps power these eligibility results on affiliate sites, giving a clearer picture of a borrower's creditworthiness in the UK. Boosted Experian Credit Scores are again factored into the final loan application decision on the Oakbrook site.

By incorporating Experian Boost data into Oakbrook's eligibility and full decisioning process, alternative data sources can be used to boost their Experian Credit Scores. This allows them to identify borrowers who traditionally may not have been eligible for a loan. Also, by incorporating Boost data Oakbrook now has a more complete picture of consumers' financial health, which could potentially lead to more competitive loan offers.

This partnership follows an update to how the size of the score boost is determined. Experian Boost users can now increase their Experian Credit Scores by up to 101 points, which could mean a customer moves up two score bands. ² Previously, the maximum increase was 66 points. Recent data shows that Boost has helped customers save an estimated £1.3m through Boosted credit card and loan offers on the Experian Marketplace.³

Eduardo Castro, Managing Director of Experian Consumer Services said: "This partnership demonstrates how alternative data can drive financial inclusion while supporting lenders in making informed credit decisions. By using Experian Boost in the decisioning process, lenders like Oakbrook can expand their reach and offer credit products to a wider pool of borrowers. Likewise, as the increased cost of living continues, it's important for us to work with lenders to help consumers get access to credit options that they can manage.

Experian Boost launched to help make affordable credit more inclusive, so we're pleased that our partnership with Oakbrook is building on our commitment to providing that opportunity for consumers across the UK."

James Blakey, Chief Analytics Officer, at Oakbrook said: "At Oakbrook Finance, we understand the crucial role that access to credit plays in empowering individuals to achieve their financial goals. Our goal is to continuously innovate and offer tailored, affordable, and straightforward financial products. We are committed to providing solutions that are not only accessible but also easy to manage and understand, ensuring our customers have the confidence and support they need in their financial journey.

We're delighted to partner with Experian to leverage alternative data like Experian Boost, enabling us to meet the diverse needs of our customers, making credit more inclusive and impactful."

-ENDS-

NOTE TO EDITORS:

¹ Open Banking is an initiative that allows consumers to share their bank transactions with FCA authorised third parties via a safe and secure connection. Data cannot be shared without the consumer's explicit consent. The aim of Open Banking is to drive innovation in the quality of products and services that people can access.

Open Banking uses APIs - or Application Programme Interfaces - which are technology that allow banks and other companies to conveniently and securely share data between their organisations.

² The Experian Credit Score is based on the information in their Experian Credit Report, such as how many credit accounts they have and how much credit they use as a percentage of their credit availability. It runs from 0-999 and can give someone a good idea of how lenders are likely to view them. The higher their score, the better the chance the individual has of securing the credit they're after along with lower interest rates because they are predicted as more likely to pay back their borrowing. The table below is a score band guide to show what scores generally secure the best offers.

Experian Credit Score Bands

Very Poor 0 - 560

Poor 561 - 720

Fair 721 - 880

Good 881 - 960

Excellent 961 - 999

An Experian Credit Report already includes a wide variety of accounts such as loans, credit cards, mortgages, mobile phone contracts, bank accounts and even some regular household bills such as energy, water and broadband. Reports also include a selection of relevant public records such as the electoral register as well as court judgments ('CCJs' in England and Wales) and insolvencies. In most cases, a credit report captures this information over the past six years.

Alongside the credit report, the lender might also assess the information on your application form (about your occupation and income, for example) along with any information it already knows about you if you've been a customer before.

Not all credit scores will increase with Boost, but it will never cause a credit score to go down. Free Experian account linked to your current account is required. Not all lenders use Boost.

³ £1.3million is a combination of the estimated savings customers could have as a result of both credit card (£853k) and loan offers (£500k).

£853k is a representative estimate of the total amount that customers could have saved as of July 2024 through APR reductions, increased 0% promotional periods, or vouchers/cashback on the Experian Marketplace. The estimated savings for APR reductions or increased 0% promotional periods are based on the difference in interest paid in a representative example where a customer spends £1,000 and pays off 5% per month (no more spending on the card). Comparing Boosted Representative APR vs alternative available from the same lender. The estimated savings for vouchers and cashback are based on their simple value.

£500k is an estimate of how much customers could save from loan offers based on reported sales data from lenders.

Media contacts:

Eliza Odire-Boadi, Consumer PR Manager, Experian UK&I

Tel: 07816192572 / Email:[email protected]

Claire Smith, Head of Marketing, Oakbrook

Email: [email protected]

About Experian

Experian is a global data and technology company, powering opportunities for people and businesses around the world. We help to redefine lending practices, uncover and prevent fraud, simplify healthcare, deliver digital marketing solutions, and gain deeper insights into the automotive market, all using our unique combination of data, analytics and software. We also assist millions of people to realise their financial goals and help them save time and money.

We operate across a range of markets, from financial services to healthcare, automotive, agribusiness, insurance, and many more industry segments.

We invest in talented people and new advanced technologies to unlock the power of data and innovate. As a FTSE 100 Index company listed on the London Stock Exchange (EXPN), we have a team of 22,500 people across 32 countries. Our corporate headquarters are in Dublin, Ireland. Learn more at https://www.experianplc.com/

About Oakbrook

Oakbrook Finance is a consumer lending business on a mission to change lending for the better. Based at Scale Space Nottingham, it is part of the portfolio of businesses supported by the UK's leading venture builder, Blenheim Chalcot.

Oakbrook's in-house technology and analytics consumer lending platform, supports a multi-product, multi-brand strategy and digitally enabled customer services.

Oakbrook brings together people with deep expertise in consumer lending, advanced analytics and forward-thinking technologists, with a shared belief that there's a better way to do consumer lending by being more personalised and customer focused.