Those with low income, or other vulnerable consumers, can often find it difficult to get access to credit. Worryingly, this number is on the rise meaning there is a huge need for solutions to help. The latest acquisition of lending firm, Slick Solutions, by Hope Macy, the FCA-regulated payments institution and credit reference agency, looks to do just this and make credit more accessible.
Slick Solutions will now be able to integrate Hope Macy’s consumer technology into its loan platform. Over 20 major institutions using the platform, including responsible lenders, credit unions, and retail banks, will be able to benefit from the acquisition. Hope Macy will enable them to make faster, more accurate, and data-driven decisions while prioritising consumer welfare at the start of any lending process. Lenders can significantly increase compliance with consumer duty, reduce costs, and unlock new revenue opportunities.
Sam Manning, CEO of Hope Macy said: “This acquisition is transformative. We wanted to protect consumers from financial harm, and the starting point is the credit process. By placing ourselves right at the start, we can assist lenders in making better decisions and advancing FCA consumer duty. Building on our experience in the vulnerable consumer sector, we offer lenders one of the largest credit platforms with consumer duty at its core, ensuring that consumers achieve good financial outcomes.”
Luke Scowen, CEO of Slick Solutions added: “This is a game-changing moment for the credit industry. By merging our powerful technologies and regulatory permissions, we’re setting a new benchmark for efficiency, speed, and cost savings across the board. We put the duty to protect consumers at the start of the credit journey and offer our lenders high-quality loan management services. This way, both consumers and our business clients benefit.”
Utilising Hope Macy’s APIs
Using advanced machine learning, Hope Macy’s APIs are able to predict the likelihood of a consumer defaulting on a loan, and even when the default may occur, without the need for traditional credit scoring that discriminates against consumers with poor or no credit history.
The entire loan process—from application to payment and collections—is now enhanced with Hope Macy’s regulated APIs. As a result, consumers are better protected from financial harm, and can gain improved and more affordable access to finance and banking. Furthermore, they can obtain credit at reduced cost and risk.
Lenders are empowered to provide better consumer information, enabling smarter financial decisions. Now, they can also ensure safe lending to vulnerable consumers. Lenders also benefit from APIs designed specifically for identifying the unique risks that are presented by low-income and vulnerable groups.
Slick Solutions transforms loan processing with expanded services, a focus on FCA consumer duty obligations, automated credit agreement reviews, and streamlined capital provision to financial institutions. It provides lenders a one-stop shop for loan origination and all the essential API services needed to assess and manage a loan application.
This acquisition provides lenders with a more inclusive and forward-thinking solution. Additionally, an advanced payment gateway solution offers greater control over payment transactions, delivering a streamlined and cost-effective alternative to traditional payment systems.
Support from Obrenza Group
Hope Macy is part of the Obrenza Group and was advised by commercial law firm Square One Law, an ethical B Corp with offices in Newcastle, Leeds and Darlington.
Ashraf Ali, corporate partner at Square One Law said: “We were delighted to advise Obrenza on this strategic acquisition and enjoyed working alongside their team to bring together two leading ethical consumer finance technology businesses.
“This merger marks a significant step forward, with Slick Solutions’ loan origination platform perfectly complementary to the Obrenza existing technology offering. The result will empower financial institutions to provide even greater support to low-income and vulnerable consumers. It has been a pleasure to work with the team and be able to contribute to a transaction that aligns so closely with our own values of integrity and client-first commitment.”
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