ClearScore: Empowering Consumers to Take Control of Their FinancesIn today’s world, where debt and financial issues are rampant, it’s essential to keep a close eye on your credit score and credit report. These two factors can heavily influence your ability to secure loans and credit cards, rent an apartment, or even get a job.
Until recently, obtaining this information was a tedious and expensive process. However, with the emergence of ClearScore, access to credit information is now quick, easy, and free.
ClearScore Overview
ClearScore is an innovative credit reporting agency founded in the UK in 2015 by Justin Basini and Dan Cobley. Its primary mission is to educate and empower consumers by providing them with personalized coaching plans and recommendations to improve their finances.
ClearScore offers a suite of free credit monitoring services to help users stay informed and in control of their credit reports.
ClearScore Features
Credit Score: ClearScore provides users with their credit score from Equifax, one of the leading credit reporting agencies globally. The score ranges between 0-700, with 700 being the highest score possible.
Credit Report: ClearScore offers users free access to their credit reports from Equifax, which shows a detailed summary of their credit history, from loans to credit cards. Coaching Plans: ClearScore provides users with personalized coaching plans to improve their credit score based on their current financial situation.
The tailored plans break down specific steps users can take to improve their credit score. Personalized Offerings: ClearScore offers personalized credit card and loan recommendations based on the user’s credit score and financial profile to help them take the first steps towards financial goals.
ClearScore History and Growth
ClearScore launched in July 2015 with a 500k seed round and began operations in 2016. It quickly attracted a user base of over a million people, making it one of the fastest-growing companies in the credit industry.
ClearScore was acquired by Experian, a leading global information services company, in 2019 for 275 million in a move to expand its reach, capitalise on Experian’s worldwide footprint and work together to create new opportunities in consumer credit services.
ClearScore Revenue Model
ClearScore’s primary revenue model is based on referral fees, which the company earns by recommending loan and credit card products to users. It works on a commission model, earning a percentage of each product sold through its platform.
ClearScore partners with advertisers and personal finance providers to place ads on its platform, generating income from each cost-per-click on advertisements.
Subscriptions
ClearScore launched Protect Plus in 2018, a premium subscription service that provides identity theft protection and fraud prevention service to its users. The service features a scanning system that identifies and alerts users to unusual behaviour on their credit report, offering them greater peace of mind.
The subscription service also offers live chat and phone call services for users who encounter any fraud-related issues. The subscription fee is 14.99 a month.
Conclusion
In summary, ClearScore is a revolutionary platform that aims to empower users to take charge of their finances through access to their credit score, credit report, personalized coaching plans, and tailored credit card and loan recommendations based on their current financial standing. This debt monitoring service has experienced tremendous growth and is expanding its reach worldwide through partnerships and acquisitions.
Its subscription model offers added benefits, giving users identity protection and fraud prevention services, which guarantees a safe experience. ClearScore is the ideal partner for anybody looking to improve their credit score and take control of their financial future.
ClearScore: The Story Behind Its Funding, Revenue, and Ownership
ClearScore has revolutionized the credit reporting industry by creating an accessible and straightforward platform for users to access their credit scores and credit reports with just a few clicks. In this article, we delve deeper into the finances of the company, tracing its funding history, revenue, and ownership structure.
ClearScore Funding
ClearScore has had a successful run with securing funding from a range of investors, starting with a seed round of 500k, which was led by QED Investors in the UK. The company raised its Series A funding of 2.2m in March 2016, led by Illuminate Financial.
Following the successful launch and rapid growth of ClearScore in the UK market, it raised another funding round of 14m in 2017, this time from Blenheim Chalcot, and invested in product development and expansion. The company’s most significant funding round came just two years later, in March 2019, which resulted in its acquisition by Experian for 275m in total cash consideration, making it one of the most significant fintech buys in Europe.
The acquisition cemented its position as one of the leading fintech companies in the UK, and the company’s founders, Basini and Cobley, retained their leadership roles within the company following the acquisition.
ClearScore Revenue and Profitability
A revenue stream for ClearScore is referral fees, which the company earns by recommending loan and credit card products to users. The subscription-based Protect Plus service, launched in 2018, provides another revenue stream, with fees totaling 14.99 per month.
In the fiscal year ending March 2018, ClearScore had a turnover of 11.103m, with Protect Plus accounting for 1.123m of the revenue. However, the business had a loss of 25.5m in the same year, a substantial increase compared to the loss in the previous fiscal year of nearly 7m.
In contrast, ClearScore had a strong year in 2019, recording a profit of 5.2m during the year following its acquisition by Experian. ClearScore’s Ownership
ClearScore was founded in 2015 by Justin Basini and Dan Cobley, and both co-founders retained their roles in the company following the acquisition by Experian.
Basini, who holds a degree in economics and a Ph.D. from the University of Southern California, is also the chairman and CEO of ClearScore. Cobley, a graduate of the University of Bristol with an MBA from INSEAD, serves as the company’s chief operating officer.
ClearScore’s ownership and shareholding structure were not significantly impacted by the acquisition. ClearScore’s founders and management retained a share of the company, with Experian owning the majority share in the company.
Conclusion
ClearScore’s trajectory to becoming one of the leading fintech companies in the UK is impressive. Its partners’ list includes some of the big names in the financial sector, including Experian, who acquire the company in 2019.
Its referral fee and subscription-based revenue stream puts the company in a good place financially. With the leadership team retaining their roles following the acquisition, and Experians financial muscle, they are poised to expand their reach in the global credit reporting industry.
ClearScore’s success story continues to inspire fintech start-ups to rise to the challenge of creating technology-driven solutions, delivering value to consumers. ClearScore’s innovative platform has revolutionized the credit industry, providing users with easy and free access to their credit scores and reports.
Since its inception in 2015, the company has grown significantly through various equity funding rounds, resulting in its acquisition by Experian in 2019. ClearScore’s revenue streams include referral fees and subscriptions, leading to 11.103m turnover in 2018 and 5.2m profit in 2019.
Its founders, Justin Basini and Dan Cobley, still hold leadership roles in the company following the acquisition, with Experian owning the majority of shareholding. ClearScore’s success story highlights the importance of easy and accessible credit management tools for consumers, and its trajectory inspires other fintech start-ups to deliver solutions to improve the customer experience.