LendTech company DivideBuy, has launched a unique soft search credit check functionality, letting customers know whether they will be approved for interest-free credit purchases without affecting credit score.
The firm is one of a few companies that can offer this functionality due to its unusual position as both the technology developer and money lender.
DivideBuy partner, Pay Smart Carpets, has been trialling soft search for over 10 weeks and co-owner Denis Sudlow, explained: “Soft search has opened up a new dimension of conversion rates for us and has proven its value as a piece of tech.
“We had a few implementation issues early on but the DivideBuy team were incredibly supportive, making this venture feel like a real partnership where we grow alongside each other. It works really well, and we will certainly be continuing to use this technology in the long term.”
Customers shopping on DivideBuy’s retail partner websites can enter their details on the product basket page as DivideBuy’s technology platform performs a soft credit check. It allows customers to instantly know their credit worthiness specifically with DivideBuy and if they feel comfortable to go ahead with a purchase after the credit score is applied.
James Bradley, Business Development Director at DivideBuy, added: “Consumers are understandably worried about anything that might affect their credit scores. In this situation, retailers and lenders have a responsibility to make sure customers can afford what they purchase and offer options for smarter ways to pay that won’t have a negative impact further down the line.
“The fact that DivideBuy is one of the few LendTech companies to provide a soft search function for interest-free purchases shows our commitment to responsible lending and improving the experience of retailers and customers alike.”
DivideBuy built the soft search functionality based on feedback from retailers that customers often bounced off the interest-free basket page. Many would fail to convert due to uncertainty over whether they would be approved for credit and fear a hard credit check would negatively affect their credit score.
The soft search functionality removes those concerns, making customers more likely to convert.