Fintech group ClearScore is expanding into embedded finance and secured lending through the acquisition of Manchester-based Aro Finance.

ClearScore, which provides consumers with credit rating information and credit card and loan referrals, is aiming to move into business-to-business-to-consumer channels through the embedded finance offering of Aro.

Aro Finance provides a platform for clients such as Argos, Asda and Very.co.uk to offer their customers credit products directly. The Manchester fintech also operates a marketplace to connect businesses with various lenders.

Through the acquisition, ClearScore can offer a greater choice in lender options as it looks to build out its debt consolidation technology ‘Clearer’, which will allow the direct settlement of consumer debts.

Diversifying our channels to market, and product range we can offer to our 24 million users, as well as our offering to our lenders, is an important step in our strategy,” said ClearScore co-founder and CEO Justin Basini.

“We see a significant growth opportunity in second charge mortgages, and this will be a critical part of our debt consolidation proposition and business growth going forward. The addition of Aro’s marketplace capabilities to the Group perfectly aligns with our existing data-driven approach and will allow us to reach new users through retail channels.

Aro Finance employs a team of over 90 staff based in Manchester, which will be joining ClearScore’s London and Edinburgh offices.

“This acquisition marks a pivotal moment in Aro’s journey. By joining ClearScore we become part of one of the most innovative global organisations in fintech. It is an exciting new chapter for the business, ensuring that together we continue to grow and deliver exceptional value for our partners, lenders and customers,” said Aro Finance CEO Emma Steely.

“With the clear business synergies and strategic data-led approach, I am confident that we will continue to engage with and serve many more customers with the strong breadth and depth of our combined product offerings.”

The deal remains subject to regulatory approval from the Financial Conduct Authority (FCA).

This is the second acquisition made by ClearScore following its 2022 purchase of Money Dashboard that supported its financial behavioural pattern recognition.

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