Apple acquires UK public banking start-up Credit Kudos

Credit Kudos, a UK open banking startup that helps lenders make better decisions, has been acquired by US tech giant Apple.

The deal was completed earlier this week, according to three people familiar with the deal. A source said they valued the startup at around $150 million, a significant increase in valuation. A link titled “Website Terms of Use” on the Credit Kudos website currently leads to leaf describing Apple’s Terms of Service. Credit Kudos and Apple were contacted for comment but did not respond by press time.

Credit Kudos last raised funds at the height of the Covid-19 pandemic in April 2020, cashing £5 million (about $6.5 million) in a round led by AlbionVC. TriplePoint Capital, Plug and Play Ventures, Ascension Ventures’ Fair by Design fund, Entrepreneur First and a number of angel investors also invested.

The startup offers insights and scores on loan seekers drawn from banking data – specifically loan transaction and outcome data – from the UK’s open banking framework. Its API can offer lenders faster decision-making, less risk and increased acceptance rates, according to its website.

The Open Banking Frenzy

Launched in 2015 by founders Freddy Kelly and Matt Schofield, Credit Kudos becomes the latest in a string of major European open banking acquisitions over the past year – albeit the first to be bought by a tech giant .

So far, card network operators Mastercard and Visa have driven industry consolidation. In June 2021, Visa paid €1.8 billion (about $2.15 billion at the time) for Swedish open banking firm Tink – an acquisition that was completed earlier this month. In September, Mastercard announced the acquisition of Aiia, a Danish open banking start-up.

It is not yet clear what Apple has planned for Credit Kudos. The Silicon Valley-based company currently offers financial products primarily through its Apple Pay mobile wallet, and in the form of a credit card it started deployment in August 2019.

© 2022 The Block Crypto, Inc. All rights reserved. This article is provided for informational purposes only. It is not offered or intended for use as legal, tax, investment, financial or other advice.

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