Credit Kudos, a UK open banking startup that helps lenders make better decisions, has been acquired by US tech giant Apple.
Credit Kudos last raised money at the height of the Covid-19 pandemic in April 2020, bagging £5 million (roughly $6.5 million) in a round led by AlbionVC. Triple Point, Plug and Play Ventures, Ascension Ventures’ Fair by Design fund, Entrepreneur First and a number of angel backers also invested.
The startup offers insights and scores on loan applicants drawn from bank data — specifically transaction and loan outcome data — sourced via the UK’s open banking framework. Its API can offer lenders faster decision-making, less risk, and increased acceptance rates, according to its website.
Open Banking frenzy
Launched in 2015 by founders Freddy Kelly and Matt Schofield, Credit Kudos becomes the latest in a string of big European open banking acquisitions in the past year — albeit the first to be snapped up by a tech giant.
Up to now, card network operators Mastercard and Visa have been driving consolidation in the sector. In June 2021, Visa paid €1.8 billion (roughly $2.15 billion at the time) for Swedish open banking firm Tink — an acquisition that was finalized earlier this month. In September, Mastercard announced the acquisition of Aiia, a Danish open banking startup.
It is not yet clear what Apple has planned for Credit Kudos. The Silicon Valley-based company currently offers financial products primarily through its mobile wallet Apple Pay, and in the form of a credit card that it began rolling out in August 2019.
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