CreditLadder has become the first PropTech firm to be approved by the Financial Conduct Authority (FCA) as a payment institute.
This offers CreditLadder the ability to organise and request rental payments on behalf of tenants from their bank to their landlord or managing agent’s bank account as an approved Payment Initiation Service (PIS).
FCA approval also means that CreditLadder can now offer personal financial information ‘dashboards’ to its customers, including tenants, as an approved Account Information Service (AIS) provider.
Combining this with the ability to improve a tenant’s credit score could offer users significant financial savings for existing renters looking to eventually get a foot on the housing ladder.
Sheraz Dar, CEO of CreditLadder.co.uk, said: “Winning FCA approval is a huge step forward for CreditLadder because it significantly widens the range of services we can offer tenants and underlines to them as well as commercial partners and investors the integrity of our platform.”
AIS and PIS have been made possible by the revised Payment Services Directive or PSD2, which earlier this year acquired tech-based payment companies like CreditLadder into the regulatory fold.
Greg Michel of Tech Nation commented: “We are delighted to see members of our fintech programme excel. CreditLadder receiving approval from the Financial Conduct Authority for both AIS and PIS is a huge statement about the fundamental importance of their work. We look forward to seeing how this will open up new avenues for CreditLadder as their work and company develop.”