ClearScore Expands into B2B2C with Aro Finance

Introduction

The transaction is a significant milestone for the Group as it transitions from direct-to-consumer acquisition and establishes a substantial B2B2C channel through embedded finance partnerships with prominent UK retailers. The acquisition also significantly enhances the company’s secured lending capabilities by incorporating secured loan brokerage into its core offering. ClearScore’s proprietary technology platform, which serves nearly 24 million users worldwide, matches users to credit cards, loans, and car finance through a sophisticated blend of credit and affordability data. This is facilitated by credit reports and open banking, among a wide array of alternative data.

Aro Finance is the Group’s second acquisition, following the acquisition of Money Dashboard Ltd in 2022. The company was acquired for its proficiency in identifying financial behavioral patterns through open banking. This technology was integrated by the Group, which subsequently developed and launched D•One, an open banking service for lenders. The service is designed to improve the underwriting process, manage risk more effectively, and identify low-risk borrowers who are filtered out by the traditional credit bureau infrastructure. Aro administers a credit marketplace proposition that is integrated into the digital infrastructure of affinity partners, including well-known brands like Argos, Very.co.uk, and Asda. The inclusion of ClearScore’s current financial services partners in this offering will expand the number of lending options that are integrated into the digital channels of the retailers.

The acquisition of Aro Finance will offer the Group a broader range of options for potential borrowers, particularly as it expands and refines its distinctive debt consolidation loan technology, ‘Clearer’. Clearer, which was introduced in July 2024, enables the direct settlement of consumer obligations. The risk of funds not being used to pay off existing credit cards and loans is eliminated by this proposition, which effectively settles the loans for the consumer. Ultimately, Clearer users will have access to both unsecured and secured loans (following the integration of Aro), which has the potential to assist hundreds of thousands of debtors in the UK in improving their financial circumstances and better managing their debt. A ‘point of need’ service to lenders is the third business stream of Aro. This service assists users who have been rejected for credit in locating appropriate alternatives. The FCA now anticipates that this is a critical component of post-application care. This will enable a greater number of consumers to secure the credit they require by offering a comprehensive lending panel.

Industry Comments

Justin Basini, Co-founder and CEO of ClearScore, said: “This acquisition allows us to continue our growth by expanding into two complementary areas as a credit broker, namely embedded finance and secured second charge lending. Diversifying our channels to market, and product range we can offer to our 24 million users, as well as our offering to our lenders, is an important step in our strategy. We see a significant growth opportunity in second charge mortgages, and this will be a critical part of our debt consolidation proposition and business growth going forward. The addition of Aro’s marketplace capabilities to the Group perfectly aligns with our existing data-driven approach and will allow us to reach new users through retail channels.

“ClearScore continues to be committed to our ability to serve more and more users with suitable offers of credit, and at the same time, continue to grow as a channel for our lender partners.”

Emma Steeley, CEO at Aro, said: “This acquisition marks a pivotal moment in Aro’s journey. By joining ClearScore we become part of one of the most innovative global organisations in fintech. It is an exciting new chapter for the business, ensuring that together we continue to grow and deliver exceptional value for our partners, lenders and customers.

“With the clear business synergies and strategic data-led approach, I am confident that we will continue to engage with and serve many more customers with the strong breadth and depth of our combined product offerings.

“I am immensely proud of what we have achieved at Aro, and I am looking forward to what the future holds under ClearScore’s stewardship.”

FAQs

What does the acquisition of Aro Finance mean for the Group?
The acquisition diversifies the Group’s strategy by adding a B2B2C channel through embedded finance, working with leading UK retailers. It also enhances secured lending capabilities, expanding the Group’s offerings to include secured loan brokerage and embedded credit services.
How does Aro Finance operate within the financial ecosystem?
Aro Finance runs a credit marketplace integrated into the digital infrastructure of major UK retailers like Argos, Very.co.uk, and Asda. This allows borrowers to access lending options directly through retailer platforms, making financial services more accessible.
What is the ‘Clearer’ technology, and how does it benefit borrowers?
Clearer is a debt consolidation technology that ensures funds are directly used to settle consumer debts, such as credit cards and loans. By automating the payment process, it helps borrowers manage debt effectively, offering both unsecured and secured loan options post-Aro integration.

Conclusion

The acquisition of Aro Finance marks a transformative step for the Group, combining its proprietary technology with Aro’s embedded finance solutions. This strengthens the Group’s position in both secured and unsecured lending while introducing innovative services like Clearer to help borrowers manage debt responsibly. By integrating Aro’s marketplace and credit solutions, the Group is poised to improve financial access and outcomes for millions of users worldwide.