Case Study: Plend & Purple Shoots – A Partnership Empowering the Underserved

Purple Shoots

At Plend, our mission is to utilise data and technology to create a fairer financial future for the UK. Partnering with Purple Shoots, a not-for-profit microfinance organisation dedicated to tackling poverty, we’ve been able to support their work by providing access to our open banking engine. This case study explores how our collaboration has enhanced Purple Shoots’ credit decision-making process, ultimately helping underserved communities gain access to the financial support they need.
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Purple Shoots’ mission

Purple Shoots is committed to empowering individuals and communities through access to finance, resources, and support. Their goal is to break down barriers that prevent people from achieving their full potential by offering tools to build sustainable businesses, develop self-reliance and uplift communities.
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The Challenge: a complex and outdated credit decisioning process

Before integrating Plend’s technology, Purple Shoots faced significant challenges in assessing the financial health of their clients:

Applicants had to provide paper copies of bank statements, which was increasingly difficult as mainstream banks stopped issuing them for free.
Challenger banks were even less likely to provide statements, adding further complexity.
Security concerns arose with handling and storing paper or emailed statements.
A limited review window of 3-6 months of financial history did not always provide a comprehensive picture.
There was no way to verify whether applicants were presenting all their accounts or only selective ones.

Prior to the pandemic, many Purple Shoots clients relied on cash, making bank statements less informative. However, with the shift towards digital transactions, access to comprehensive banking data became crucial for accurate decision-making.
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The Solution: implementing Plend’s Open Banking engine

Purple Shoots needed a reliable, secure, and efficient way to access clients’ banking data, and Plend’s technology provided just that.
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“Plend’s open banking solution was very easy to integrate into our lending process, and the Plend team were brilliant at solving any teething problems that we came across. Plend’s technology replaced our manual statement collection process with a streamlined and data-first approach. The result was a more efficient, accurate and user-friendly credit decision making process.” ‍

– Karen Davies, Purple Shoots

The Impact: improved decision-making and enhanced security

Purple Shoots have experienced a significant improvement in their credit decisioning process, and even default levels.
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“We have seen a great improvement in our decision-making, which is now based on accurate data; and because we have a better understanding of who our customers are, we are far less likely to lend to someone who is concealing an issue from us.”

– Karen Davies, Purple Shoots
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Better Data, Better Decisions: Plend’s open banking technology ensures access to comprehensive financial data, reducing the likelihood of lending to individuals who may be concealing financial issues.
Increased Security: Eliminating paper statements and email submissions reduced security risks, making the process safer for both Purple Shoots and their clients.
User-Friendly for Clients: Despite serving individuals who may struggle with technology, Purple Shoots reports that their clients rarely face difficulties connecting to Plend’s system.

Looking ahead

Purple Shoots continues to leverage Plend’s technology to make well-informed lending decisions and support more underserved individuals. With better financial insights, they are more confident than ever in their ability to allocate resources effectively.
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A partnership that works

The collaboration between Plend and Purple Shoots exemplifies how fintech innovation can drive social impact, breaking down financial barriers and creating opportunities for those who need them most.

“Our partnership with Plend has been transformative for Purple Shoots. Previously, collecting and verifying financial data was a major challenge, but with Plend’s open banking technology, we now have seamless access to comprehensive financial insights. This has significantly improved our decision-making process and allowed us to lend with greater confidence. Plend’s system is easy to use, even for our clients who struggle with technology, and we feel reassured that we are making informed lending decisions. I would highly recommend Plend to any organisation looking to enhance their financial decision-making.”