FinTech group ClearScore is expanding into embedded finance and secured lending after acquiring Manchester-based Aro Finance.
This is the second acquisition made by ClearScore, following its 2022 purchase of Money Dashboard, which supported its financial behavioural pattern recognition.
ClearScore, which provides consumers with credit rating information and credit card and loan referrals, is aiming to move into business-to-business-to-consumer channels through the embedded finance offering of Aro.
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 mix of credit and affordability data, facilitated through credit reports and open banking amongst a wide array of alternative data.
Fintech Aro Finance provides a platform for clients such as Argos, Asda and Very.co.uk to offer their customers credit products directly.
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Through the acquisition, ClearScore can offer a greater choice in lender options as it looks to build out its debt consolidation technology ‘Clearer’, which will allow the direct settlement of consumer debts.
ClearScore co-founder and CEO, Justin Basini, said: “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.”
Aro Finance CEO, Emma Steely, added: “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.”
Aro’s Manchester-based workforce of over 90 staff will now join ClearScore in their London and Edinburgh offices.
The deal remains subject to regulatory approval from the Financial Conduct Authority (FCA).