The joint venture will use Freedom Finance's financial technology platform to search a panel of trusted lenders. One application will give customers the best available rates for personal loans, without leaving a mark on credit ratings. The unique proposition will mean more application approvals in comparison with single-lender providers.
It is the first time that a UK retailer has partnered with a panel-based broker, building on Asda Money’s decade of experience in consumer finance. Asda Personal Loans will launch today online and via telephone.
Brian Brodie, Chief Executive of Freedom Finance, said: “This is the first time a panel-based lending approach has been applied to a UK retail loan offering. It widens the market space for Asda Money, who will now be able to say yes to more customers”.
Asda Money will benefit from the expertise of Freedom's specialist broker team, which has developed a platform that delivers a great value financial product through a seamless customer journey.
Brian Brodie added: “It is our mission to help as many customers as possible secure the funding needed to realise their dreams and ensure we deliver on our promise of great customer outcomes. This joint venture will significantly increase the number of personal loan approvals that Asda Money will be able to provide to its 19 million-strong customer base.
“By bringing together the strength of the Asda brand and the experience of Freedom we will truly deliver a market-leading loan proposition for Asda versus their competitors.”
Katie Walley, Head of Asda Money added: “Our strong belief and analysis of the current market was that a new and different approach to personal loans was desperately needed to better fit the needs of our customers and consumers who are often turned down or offered a rate that doesn’t suit them.
“Unlike other high street lenders, we will consult with a panel of trusted lenders through Freedom Finance to ensure we offer customers the best loan for their circumstances and rest assured thanks to the soft search technology, there’s no effect on customer’s credit rating - something we don’t feel is fair.”