Partner Article

Hope Macy and Slick Solutions in strategic merger to enable fairer credit to low-income consumers

Cardiff, 19th November 2024

Hope Macy, an FCA-regulated Payments Institution and Credit Reference Agency firm known for its consumer duty compliant app, Family Connect, which protects people from financial harm has completed a strategic acquisition of Slick Solutions.

This acquisition aims to transform the financial lives of low-income and vulnerable consumers by providing better  access to credit through the Slick loan origination platform.

Hope Macy’s advanced consumer technology, currently used by the largest retail banks, is now integrated into Slick Solutions' full-service loan platform—trusted by over twenty major institutions, including responsible lenders, credit unions, and retail banks. The integration of Hope Macy’s technology enables these institutions to make faster, more accurate, and data-driven decisions while prioritising consumer welfare at the start of any lending process. Lenders can significantly increase compliance with consumer duty, reduce costs, and unlock new revenue opportunities. 

Using advanced machine learning, Hope Macy’s APIs are able to predict the likelihood of a consumer defaulting on a loan, and even when the default may occur, without the need for traditional credit scores that can discriminate against consumers with poor or no credit history.

The entire loan process—from application to payment and collections—is now enhanced with Hope Macy’s regulated APIs. As a result, consumers are better protected from financial harm, gain improved and more affordable access to finance and banking, and can obtain credit at reduced cost and risk. Lenders are empowered to provide better consumer information, enabling smarter financial decisions and ensuring safe lending to vulnerable consumers. Lenders also benefit from APIs designed specifically for identifying the unique risks that are presented by low-income and vulnerable groups.

Slick Solutions transforms loan processing with expanded services, a focus on FCA consumer duty obligations, automated credit agreement reviews, and streamlined capital provision to financial institutions. And now, Slick provides lenders a one-stop shop for loan origination and all the essential API services needed to assess and manage a loan application. This acquisition provides lenders with a more inclusive and forward-thinking solution. Additionally, an advanced payment gateway solution offers greater control over payment transactions, delivering a streamlined and cost-effective alternative to traditional payment systems.

The rapid growth in the number of low-income and vulnerable consumers means there is a great and urgent need for the solutions provided by the combined firms. 

Sam Manning, CEO of Hope Macy, said:

"This acquisition is transformative. We wanted to protect consumers from financial harm, and the starting point is the credit process. By placing ourselves right at the start, we can assist lenders in making better decisions and advancing FCA consumer duty. Building on our experience in the vulnerable consumer sector, we offer lenders one of the largest credit platforms with consumer duty at its core, ensuring that consumers achieve good financial outcomes."

Luke Scowen, CEO of Slick Solutions, added:

"This is a game-changing moment for the credit industry. By merging our powerful technologies and regulatory permissions, we’re setting a new benchmark for efficiency, speed, and cost savings across the board. We put the duty to protect consumers at the start of the credit journey and offer our lenders high-quality loan management services. This way, both consumers and our business clients benefit."

Obrenza was advised by Commercial firm Square One Law, an ethical B Corp with offices in Newcastle, Leeds and Darlington.

Ashraf Ali, Corporate Partner at Square One Law said:

 "We were delighted to advise Obrenza on this strategic acquisition and enjoyed working alongside their team to bring together two leading ethical consumer finance technology businesses. This merger marks a significant step forward, with Slick Solutions’ loan origination platform perfectly complementing Obrenza’s existing technology offering. The result will empower financial institutions to provide even greater support to low-income and vulnerable consumers. It has been a pleasure to work with the team and be able to contribute to a transaction that aligns so closely with our own values of integrity and client-first commitment."

Ashraf was joined by colleagues Vanessa Middleton, Helen Brain, Emily Warman, Riz Shahid and Dominika Cudak in supporting the deal.

This was posted in Bdaily's Members' News section by Square One Law .