Credit reporting agency TransUnion announced on Monday that it was making an equity investment in FinLocker’s $20 million Series A round, inking a partnership agreement designed to give consumers more control and access to their credit data while letting lenders and servicers leverage FinLocker for lead nurturing and conversion.
With the partnership, TransUnion will provide credit report information to FinLocker and provide updated credit and consumer information through its lead generation and servicing solutions. TransUnion will also package its marketing suite of solutions to identify high-quality leads for originators, the company 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,” said Joe Mellman, senior vice president and mortgage business leader at TransUnion. “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.”
The partnership means consumers will be able to collect and permission their financial information ahead of getting a mortgage and make an offer on a home with a loan commitment from their lender, the companies said in a press release. Consumers will have access to educational resources and a personalized financial health dashboard.
Consumers can access FinLocker through their financial institution via desktop or mobile app and manage their financial information though a personal data and document vault or locker.
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For lenders, the partnership means they can educate consumers and streamline the application process, as well as gain deeper insights into consumers’ actions and behaviors. This provides lenders with the information they need to make smarter risk decisions and uncover new opportunities to drive growth, the companies said.
In their press release, the companies noted the “massive growth” in the mortgage industry this year due to low interest rates.
“A consumer’s personal information is the key to unlocking new economic opportunities,” said Peter Esparrago, cofounder and CEO of FinLocker. “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.”