Yonder, a credit card startup, has teamed up with Yapily, an open banking platform, to offers access to credit to consumers without the requirement of a credit score, in the UK.

Experian’s recent research showed that more than five million people in the country, which is about 9% of the total adult population, have little to no credit history.

Yonder and Yapily intend to address this issue by creating a more accurate, and fairer approach to evaluate the financial footprint of a consumer with open banking.

Following consent of a customer, Yapily Data allows Yonder to get individual bank account information and evaluate factors such as income and expenses to create a credit profile that is of holistic in nature.

This approach provides a potential to provide access to finance for millions of ‘credit invisibles’.

Besides higher approval rates, Yonder customers will stand to benefit as there would be no currency exchange fees when spending overseas. Customers will be able to build credit score by making payments monthly on time.

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Powered by Yapily Payments, customers of Yonder will be benefitted for using a direct, immediate, and more secure account-to-account open banking payment mode when making their payments.

Yapily founder and CEO Stefano Vaccino added: “This is yet another excellent example of how open banking is helping to serve the underbanked population, providing access to financial products to those who may not have been able to before. It’s great to see how innovative companies like Yonder are challenging traditional credit systems and joining us on our mission to create better and fairer financial services for everyone.”

Yonder co-founder and CEO Tim Chong said: “Unfair credit scoring methods, legacy app experiences, and vague pricing techniques are a thing of the past. With open banking, we’re bringing back fairness and equality to the credit industry. Yapily’s technology and open banking expertise are helping to make that vision a reality.”