Snap Finance: fast, flexible financing
In the latest issue of Fintech Magazine, we spoke to Mike Palmer, COO at TAB Bank, about the vital role strategic alliances play in its digital transformation journey. TAB Bank, which aims to revolutionise open banking in the US, teams with market-leading fintechs and financial services provider to improve the financial health of its customers.
“These are tremendous partners that we’ve had tremendous success with,” Palmer says.
Partners such as Snap Finance, a provider of fast and flexible consumer financing, are invaluable to TAB Bank’s digital transformation - and in providing its banking customers with the services and tools to improve their financial standing.
As a strategic partner of TAB’s, Snap offers customers reliable lease-to-own financing for the things that matter. Its proprietary algorithm looks beyond a FICO score, leveraging more than 11,000 data points to ensure customers have the best chance for approval - and aid Snap partners close more sales.
Snap Finance’s three-pillar approach
Customer get what they need, when they need it
Snap looks beyond bad or no credit ratings to give applicants the best chance possible to gain successful funding - and in a time that is near unrivalled in the lease-to-own market.
Flexible payment options
Customers can retain control over their repayments with a choice of three easy payment options. These give customers freedom, convenience and confidence to make informed decisions and gain access to the things they want.
No Credit Needed
Snap is for everyone, even the nearly third of American’s who do not qualify for traditional financing due to their credit history. Snap looks beyond their credit score and can get them approved in seconds.
Customers love Snap’s service, with one five-star review stating: “Snap came through for me when I needed to fix my car. It’s great to know that this service is available when you really need it.
Zopa and CreditLadder Partner to Help Improve Credit Scores
For people who rent, getting access to finance and loans at competitive rates can be made harder as monthly rental payments are not recorded on their credit file. However, using Open Banking technology, Zopa customers will now be able to use CreditLadder to ensure their rental payments are recorded on their credit files. In turn, these payments are taken into consideration in Zopa’s credit score tool and loan eligibility checker, Borrowing Power.
Borrowing Power is a free tool in the Zopa app that calculates a customer’s financial health score, recommends targeted actions to help them improve it and links directly to their eligibility for Zopa products. By joining forces with CreditLadder, Zopa app users that rent will have the opportunity to improve their Borrowing Power score and gain better access to cheaper Zopa loans.
Offering renters a more accurate credit score
“We at Zopa are proud to be teaming up with CreditLadder to enable our customers to report their rent payments and use them to help build their credit score. We believe that as many people as possible should have access to fair, simple and transparent products. Partnering with CreditLadder and using its Open Banking technology via our app makes it possible for us to offer those that rent a more accurate credit score, tailored tips on how to improve their credit health and access to more affordable Zopa loans in the future.” said Clare Gambardella, Chief Customer Officer at Zopa Bank.
Data from Equifax shows that just under 70% of users with a ‘thin credit file’, which is where users have two or fewer credit accounts, saw an increase in their credit score when 12 months of rental payments were added.
Sheraz Dar, CEO and Co-Founder of CreditLadder said; “There are over 10 million households in the UK who rent and our mission is to ensure they can benefit from reporting their rent payments to improve their credit score - just like home owners do when it comes to their mortgage. The partnership with Zopa is a great use of technology that can help its customers access finance at better rates simply by using CreditLadder to report their rent payments each month.”