The ClearScore Group today announced it has acquired Aro Finance Ltd (subject to FCA approval). The transaction represents a key milestone for the Group as it diversifies away from direct-to-consumer acquisition and adds a significant B2B2C channel through embedded finance working with leading UK retailers. The acquisition also brings significant capability in secured lending by adding secured loan brokerage to its core proposition. Serving 23m users around the world, ClearScore’s proprietary technology platform works by matching users to credit cards, loans and car finance via a sophisticated mix of credit and affordability data, facilitated through credit reports and open banking amongst a wide array of alternative data.  

Aro Finance is the Group’s second acquisition after Money Dashboard Ltd in 2022, bought for its expertise in identifying financial behavioural patterns through open banking. The Group integrated this technology, upon which it built and launched D•One, an open banking service for lenders to enhance the underwriting process, manage risk more effectively and identify low risk borrowers that are screened out through the traditional credit bureau infrastructure. 

Aro operates a credit marketplace proposition embedded within affinity partners’ digital infrastructure, including household names such as Argos, Very.co.uk and Asda. The addition of ClearScore’s existing financial services partners to this offering will provide many more lending choices embedded in the retailers' digital channels. 

The Aro Finance acquisition will provide the Group with greater choice for prospective borrowers, particularly as it builds and scales its unique debt consolidation loan technology, named ‘Clearer’. Announced in July 2024, Clearer allows direct settlement of consumer debts. This proposition eliminates the risk that funds are not used to pay off existing credit cards and loans by automatically paying off the loans for the consumer. Clearer users will ultimately have access to both unsecured and (post the integration of Aro) secured loans, potentially helping hundreds of thousands of borrowers in the UK better manage debt and improve their financial circumstances.

Aro’s third business stream is a ‘point of need’ service to lenders which helps users rejected for credit find suitable alternatives. This is an important element of post-application care which the FCA now expects, and by providing a comprehensive lending panel more consumers will be able to find the credit they need.