A new partnership between credit information provider CRIF and BMW Financial Services will help drive instant decisions on lending applications and make the purchasing experience smoother.
CRIF will supply BMW Financial Services and its associated brands with advanced open banking services across hundreds of UK vehicle retailers, to power seamless credit checks for car finance.
Open banking-powered credit checks provide a more comprehensive picture of an applicant’s true creditworthiness, meaning people – who might previously have been turned down – will be accepted for a loan without any extra risk for the lender.
In turn, customers will be able to access car finance more easily, benefitting from faster decisions, with financial products tailored to them and appropriate for their current financial circumstances.
CRIF believes it will also help retailers approve more borrowers, thanks to a holistic, enhanced view of an applicant’s creditworthiness.
In the US, CRIF’s Indirect Lending Service has helped thousands of car dealers and lenders make loan approvals faster, more accurate and virtually paperless. CRIF technology has resulted in a 7.5% increase in consumer lending across all geographies and customers, with an 11.9% decrease in risk for consumers.
Sara Costantini, regional director for UK & Ireland at CRIF, said: “We’re seeing the UK car industry brush off the impacts of the pandemic and return to strong growth. Our partnership with BMW Financial Services in the UK will support this, helping more people to access the finance they need when buying a new motor.
“By utilising open banking transaction data, BMW Financial Services accesses more accurate consumer insights and extends its services to those who may have a thin credit file, due to living abroad for example, or those with non-traditional income patterns, such as those working in the growing gig economy.
“Ultimately, this will help UK consumers to access the finance they need without extra risk, with the potential to increase sales for hundreds of BMW dealers and associated brands across the country.”