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  • 📈 Aro Acquired: ClearScore’s Game-Changing Growth

📈 Aro Acquired: ClearScore’s Game-Changing Growth

Covid Cash Scandal: Vodafone in Hot Water!

January 07, 2025

This is Cliff Equity, the UK’s business newsletter that keeps you informed on what’s important in tech, business and finance in less than 5 minutes

In today’s stories:

  • Aro Acquired: ClearScore’s Game-Changing Growth

  • Covid Cash Scandal: Vodafone in Hot Water!

  • AI Safety Firm Expands into Defence Sector 

The summary: ClearScore's savvy acquisition of Aro Finance sharpens its fintech edge, setting the stage for bold growth and a cheeky challenge to the credit industry bigwigs.

The details:

  • ClearScore scoops up Aro Finance: In a strategic move, ClearScore acquires Manchester-based credit marketplace Aro Finance, aiming to broaden its fintech horizons and bolster its global user base of nearly 24 million.

  • Boosting the balance sheet: This marks ClearScore's second acquisition, adding a fresh revenue stream via Aro’s embedded finance tech, which integrates with big names like Argos and Asda.

  • Growth in the cards: CEO Justin Basini highlights plans to dive deeper into embedded finance and second charge lending, with Aro’s tech playing a key role in their debt consolidation strategy.

  • From Experian’s jaws to expansion: After dodging an Experian takeover in 2018, ClearScore is back on the growth track, backed by heavyweight investors and eyeing a potential future flotation.

Why it matters: ClearScore’s latest acquisition signals its ambition to dominate the fintech space by tapping into lucrative markets like embedded finance and second charge mortgages. By absorbing Aro Finance, they’re not just beefing up their tech arsenal but also positioning themselves as a formidable player against traditional credit giants. It's a classic case of David giving Goliath a run for his money, with a sprinkle of innovation and a dash of disruption.

The summary: Vodafone faces allegations of cashing in on Covid relief meant for small businesses, prompting scrutiny and a potential showdown with the Covid corruption commissioner, all while claiming to have improved its franchise practices.

The details:

  • Vodafone, a telecoms giant, faces accusations of cashing in on government Covid relief meant for small businesses, as franchisees allege "unjust enrichment" and aggressive tactics.

  • Tory MP John Hayes has asked the business secretary to refer Vodafone to the Covid corruption commissioner, adding fuel to the fire after a high court claim spotlighted the company's alleged profiteering.

  • Franchisees claim Vodafone slashed their fees, imposed hefty fines, and nudged them towards loans and grants, effectively pocketing government support while leaving small business owners drowning in debt.

  • Vodafone, refuting claims of "unjust enrichment," admits to making improvements after an extensive franchise review but insists it never directly received government funds.

Why it matters: Vodafone's alleged pandemic profiteering raises serious questions about big corporations dipping into pots meant for struggling small businesses, potentially abusing taxpayer-funded support. If true, it paints a grim picture of the little guy being squeezed to prop up a telecoms titan’s balance sheet, leaving franchisees in financial ruins. With the Covid corruption commissioner now in the spotlight, it’s a reminder that even corporate giants can’t escape scrutiny when public funds are at stake.

The summary: Faculty AI's involvement in AI safety, government contracts, and military drone development raises important questions about ethics, transparency, and potential conflicts of interest in the application of advanced technology.

The details:

  • Faculty AI, a consultancy firm working with the UK government, is involved in developing AI for military drones, alongside its work with the NHS, education, and AI safety.

  • The company has a significant role in AI safety in the UK, working closely with the AI Safety Institute (AISI) and testing AI models, including those from OpenAI.

  • Faculty's work with defence partners includes subject identification, tracking object movement, and autonomous swarming, though it avoids discussing its involvement in lethal force applications.

  • Concerns have been raised about potential conflicts of interest due to Faculty's extensive government contracts and its influence on AI policy, with calls for clearer regulations on autonomous military technology.

Why it matters: Faculty AI's involvement in both government AI safety initiatives and military drone development highlights the growing intersection between artificial intelligence and national security. The firm's influence on UK AI policy raises questions about the ethical implications and potential conflicts of interest in applying AI technology, particularly in defence. As governments and organisations grapple with the rapid advancements in AI, ensuring transparency and ethical standards in its deployment becomes crucial for public trust and safety.