TransUnion invests in and partners with FinLocker to aid consumers with the mortgage process

October 21, 2020

Credit score company TransUnion has made a $20m Series A-1 investment into personal finance app FinLocker, alongside the establishment of a new commercial partnership agreement.

The deal will enable consumers to collect and permission their financial information needed to secure a mortgage or other loans. Consumers can receive a loan decision much quicker and easier.

Users can explore educational resources on the platform to help them prepare for the mortgage application process as well as use a personalised financial health dashboard.

FinLocker co-founder and CEO Peter Esparrago said, “A consumer’s personal information is the key to unlocking new economic opportunities. However, the current processes for securing credit can make it difficult for consumers to leverage their data assets to their full potential.

“TransUnion is well-positioned within the financial services industry to partner with FinLocker to pursue these avenues of growth and bring a more streamlined approach to the loan application and approval processes for both lenders and consumers.”

The companies also state lenders will also benefit from this pairing. Lenders can streamline the application proves to save time and expense, and can utilise FinLocker as lead nurturing by gaining deeper insights into consumers’ actions and behaviours.

This partnerships comes during a time of growth for the mortgage space. Research from TransUnion claims loan originations have increased to 2.2 million in Q1 2020, up from 1.2 million in 2019.

TransUnion senior vice president and mortgage business leader Joe Mellman said, “Companies in the mortgage industry are driving a digital-first evolution by leveraging new technologies to create innovative products and experiences and this partnership helps us uniquely differentiate ourselves in the market.

“Buying a home is typically the largest purchase a consumer will make over their lifetime so it is essential for consumers to have all the information they need at their fingertips to secure a mortgage at the right time.”