Apple has acquired UK-based fintech start-up Credit Kudos, signaling a deeper push into payments technology by the iPhone maker. Credit Kudos uses machine learning to create an alternative to traditional credit scores, suggesting that US tech giant may look to expand its lending services. Apple offers a credit card, which is currently only available in the US, in partnership with Goldman Sachs, and offers instalment payment plans for its devices. Apple has expanded into financial services more slowly than some in the banking industry had feared back in 2014 when it launched Apple Pay, which allows contactless payments using its iPhone and watch and through its Safari web browser.
Credit Kudos does not have a UK banking license, but takes advantage of the country’s Open Banking standards, which are meant to make it easier and safer for consumers to share selected financial information from bank accounts and credit cards with hundreds of smaller service providers. The London-based fintech raised £5mn in 2020 in a funding round led by Albion VC. Aiming to make affordable credit more widely available and assist in faster lending decisions, the company looks at alternative measures to assess the credit risk of individuals for companies including rental apps, brokers and other fintech’s. Traditional credit assessment measures such as bank statements and utility bills have faced criticism over their ability to accurately assess a consumer’s financial situation.