Salad Money, founded by Debt Hacker campaigner Alan Campbell, is looking to “smash the monopoly” of credit reference agencies and tap into open banking and artificial intelligence.
The company, which says it is the first open banking powered lender, said it is opening up affordable credit to 85 per cent of applicants who were previously excluded from credit or paying sky-high annual rates.
Salad Money said its “revolutionary” new method of credit decisioning will disrupt the entire lending market by showing that loan affordability and risk can be assessed “much more reliably and fairly judged” by using open banking metrics.
Campbell said: “We’re all brainwashed into believing that we have to be ‘model credit citizens’. But the system is broken. The credit reference agencies are responsible for perpetuating a flawed model that excludes millions from affordable credit and encourages irresponsible lending.”
Salad Money says it enables employers to enhance their staff’s financial wellbeing without the administrative burden or capital risk, and the fintech is initially focusing on the NHS ahead of a planned UK-wide roll-out – after a “groundbreaking” pilot in Liverpool – of affordable, low-cost loans for public sector workers.
It is expanding across the UK to build partnerships with trusts located in “credit deserts”, such as Glasgow.