Ophelos deploys Open Banking to transform the collections process for individuals struggling with debt

Ophelos, the customer-centric debt management platform, has chosen Open Banking credit reference agency, Credit Kudos, as its Open Banking partner to ensure customers with debt are only committing to repayment plans they can afford, in order to help them improve their long-term financial health and break the debt cycle.

Ophelos will use Credit Kudos’ Open Banking insights to better understand the current financial position of individuals who have been referred for debt collection by lenders. This will enable the FCA-authorised company to identify repayment solutions that best fit someone’s current circumstances, helping people manage their financial situation more quickly, easily and with less stress.

Ophelos, which was founded to create customer-centric debt collection products and services, is integrating Open Banking to deliver better outcomes for customers. Already, just two months into deployment, Ophelos has recognised a 68% improvement in customer satisfaction, a 26% increase in recovery rates, and 25% decrease in cost to collect.

In the aftermath of the pandemic, a new debt collection model that enables better outcomes for borrowers, is needed more than ever. One in five (18%) of people considered vulnerable by the Financial Conduct Authority have missed payments or gone into arrears over the last 12 months, with 14% taking on further debt as a result.

Freddy Kelly, CEO and founder at Credit Kudos, comments: “The pandemic has pushed many people into arrears, and there is an urgent need to support these individuals to regain control over their finances and avoid long-term debt spirals. Time and time again, we’ve seen the immense power of technology when it comes to driving better outcomes for consumers, and the collections sector is next in line to reap the benefits of innovation. Ophelos is leading the way in putting borrowers first through the use of Open Banking insights, and we are delighted to be working alongside them as they blaze a trail for a fairer future.”

Amon Ghaiumy, CEO and Co-Founder, comments: “Our vision at Ophelos is to help create a world where everyone is financially educated, empowered, and equal. Debt collection is often upsetting and stressful, but we are reimagining this process by putting customers at the heart of what we do, and Open Banking is an incredible opportunity to allow us to achieve this goal. Using Credit Kudos’ advanced Open Banking insights, we can give customers a simpler, fairer and faster experience, create a repayment plan that is manageable for their personal financial situation and set them on the path to better financial health.”