The ClearScore Group has acquired Aro Finance Ltd in a bid to to expand into embedded finance and secured loan broking.
The transaction represents a key milestone for the group as it diversifies away from direct-to-consumer acquisition.
The acquisition also brings capabilities in secured lending by adding secured loan brokerage to its core proposition.
Serving nearly 24 million users around the world, ClearScore’s proprietary technology platform works by matching users to credit cards, loans and car finance via a sophisticated mix of credit and affordability data, facilitated through credit reports and open banking.
Aro Finance was the group’s second acquisition after Money Dashboard Ltd in 2022, bought for its expertise in identifying financial behavioural patterns through open banking.
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, added: “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.”
