Plend, a UK-based consumer lender, has partnered with Monevo, an innovative credit eligibility and distribution platform, empowering over 150 credit providers and banks to host, manage and distribute pre-qualified credit offers. The partnership aims to provide more inclusive lending options by offering pre-qualified personal loans to customers across the UK, utilising Plend's proprietary technology.
Plend is an open-data consumer lender that provides affordable, longer-term loans to customers across the UK by using their technology, The PLEND Score® to assess affordability rather than solely relying on the credit score. This innovative approach enables Plend to offer a more inclusive way to lend, providing a fairer alternative to the existing loan landscape.
Monevo is a platform that empowers credit providers to manage and distribute pre-qualified credit offers. Plend is one of its providers, giving them the ability to update their lending performance quickly.
Plend has recently introduced the Monevo declines customer solution option, which means that if a customer applies directly for a loan with Plend and is declined, they are given a chance to reapply for another loan through Monevo's partner, Creditspring whose unique subscription finance solution means consumers get an improved customer journey and can benefit from a more inclusive finance option that may have been unavailable to them previously. The Monevo declines customer solution helps improve the customer journey and offers more inclusive lending options. If the customer does not qualify for a loan with Creditspring, they are also offered an opportunity to sign up with a credit builder product.
The partnership is a response to the Consumer Duty, which suggests lenders should provide other support to declined customers. Ineffective management of declined customers increases the risk of customers going to illegal money lenders if they are unaware of alternative options. Plend's financial inclusion report: a divided nation found that year on year, more people are considering using illegal lenders (10% of the population).
Currently, 38% of UK adults face challenges accessing financial services due to their credit score. Over 20 million UK adults have inaccurate or invisible credit files, making it extremely difficult for lenders to offer necessary products. This is frustrating for borrowers, as 1 in 3 people are as reliable to lend to as a 'prime' borrower but are unfairly mis-scored. The crux of the problem is that traditional lenders are reluctant to embrace new data sources to understand customers.
Plend and Monevo's new partnership addition aims to help Plend distribute their products to suitable consumers as well as helping declined customers get the loan they need through a trusted partner. On this partnership, Dawn Wood Monevos, UK Territory Director, said, “Working with the team at Plend to enable them to distribute their product as well as being able to help them support their declined consumers has been a pleasure. We are very much looking forward to seeing the relationship continue to grow.” This partnership will offer tailored support and additional options, resulting in a better customer experience and more affordable choices. Plend's financial inclusion report recommends improved signposting and referrals to reduce the risk of loan shark usage, and this partnership is in line with that recommendation. This is a positive step towards greater financial inclusion, enabling customers to access the credit they require with the support they need.
“As our new report shows, a shocking 1 in 10 UK adults are considering using loan sharks within the next 12 months. In a post consumer-duty landscape, lenders must do more to mitigate poor customer outcomes faced by declined customers. At Plend, we're thrilled to introduce our declined customer solution in collaboration with Monevo. This enables us to extend more inclusive lending options to those who fall outside of our standard criteria, guiding them toward more fitting solutions tailored to their circumstances." James Pursaill, CTO and Co-Founder of Plend
More About Plend
Plend was founded in 2020 by Robert Pasco and James Pursaill in order to disrupt the £24 billion consumer lending market and bring affordable loans to over 20 million people in the UK who are currently under-served by traditional lenders. Underpinned by their proprietary open banking powered credit system, the PLEND Score®, Plend enables wider access to truly affordable loans in order to create a fairer future for borrowers. The PLEND Score® is built by a world-class team of machine-learning and credit risk experts.
