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Apple Inc. has announced the acquisition of UK open banking startup Credit Kudos, founded in 2015 by Freddy Kelly and Matt Schofield. Credit Kudos offers lenders additional data or information that usually contains customers’ financial history via open banking to help them make fast and better decisions in selling or offering credits. The deal’s value remains unknown, but sources close to the deal reveal that Credit Kudos is valued at $150 million.
Recently, there has been a trend in the acquisition of open banking startups like Visa purchase of Tink €2 billion and Mastercard‘s purchase of Aiia. These big players in the global financial ecosystem understand that Europe, especially the UK, has adopted open banking initiatives, and the economic dominance of these regions will largely depend on embracing these frameworks. For companies in the lending Industry, open banking can provide accurate data of customers’ financial status to lenders. Generally, open banking offers opportunities to enhance healthy competition in the financial system. A competitive environment would force companies to provide better and more efficient services, ultimately promoting financial inclusion.
Over the years, Apple has been in the business of acquiring “smaller” technological solutions for different purposes. However, this deal could see Apple Pay rolling out new features and services using tools available in Credit Kudos. For Credit Kudos, leveraging Apple’s strength as a global powerhouse could offer significant expansion opportunities beyond the UK’s market.
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