Since 2016, UK-based fintech company ClearScore has partnered with Oakbrook to offer debt consolidation loans through its marketplace. This collaboration aims to expand the availability of direct settlement options, where ClearScore’s technology pays borrowers’ creditors directly.

ClearScore’s Clearer Technology

Developed under funding from Fair4All Finance in 2024, ClearScore’s Clearer technology simplifies the direct settlement process. Unlike traditional methods, it helps mitigate the risk that funds may not be used to pay off existing debts.

Currently integrated into ClearScore’s platform, this technology is expected to be white labeled for third-party marketplaces and deployed in lenders’ direct channels later this year. By involving Oakbrook, ClearScore aims to increase the number of available debt consolidation loans.

A ClearScore spokesperson highlighted that partnering with Oakbrook will help scale their debt consolidation loan options, potentially reducing interest rates for customers. This could be particularly beneficial for those in financially vulnerable situations.

Initial results from the pilot phase of Clearer have shown promising outcomes. The technology has resulted in lower than expected annual default rates and demonstrated that lenders can issue more loans by optimizing affordability, leading to improved interest rates across debt consolidation loans. It also helps reduce total loss rates while supporting lenders’ compliance with Consumer Duty regulations.

ClearScore is working on streamlining the integration process for lenders through a single API, allowing them to implement Clearer within weeks. The technology features encryption of data at collection and automated surface of existing debts using bureau data, reducing user input errors.