Experian adds two Scottish credit unions to its loan comparison services in new initiative
People looking for loans may soon find it easier to access credit unions and other community lenders as Experian adds them to its comparison services.
Many households that had to plunder their savings during the Coronavirus pandemic, the initiative aims to help affordable credit t ethical and non-profit institutions to a wider audience – including people who find themselves “financially excluded”.
Experian said it found that about 25 percent of clients looking for loans through its comparison services are currently not eligible for offers from traditional lenders.
People who cannot access the general public banks can turn to high cost loans, like a payday loan, as an alternative, or even an illegal loan shark.
Credit unions and community development financial institutions (CDFIs) could help people lower their borrowing costs, but they are not necessarily as “visible” online to borrowers as a payday loan website. .
Credit unions are community savings and credit unions owned and operated for the benefit of their members.
CDFIs provide finance to businesses, social enterprises, and people who do not have access to traditional finance from leading banks and elsewhere.
Experian said vendors signed up for the initiative included Scotwest and Scotcash – it’s also in discussions to bring more lenders on board soon.
Clive Lawson, Managing Director of Consumer Services at Experian, said: “The financial impact of coronavirus is a concern for many of us and Experian is committed to supporting financial inclusion, especially in these difficult times.
“This is why we offer our customers another option if they not eligible for credit offers traditional suppliers.
Incuto, which is a technology provider for credit unions, worked alongside Experian to integrate participating community lenders on its comparison platform.
Andrew Rabbitt, Managing Director of incuto, said: “Incuto’s strategy has always focused on how our technology and partnerships enable credit unions and community banks to reach a wider audience.
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