- FCA launches guidance for firms on the fair treatment of vulnerable customers
- Lloyds Bank says majority risk missing out on bank’s help when they need it most
- UK Finance: Promoting global trade in financial services is central to UK economic recovery
- "Investor confidence to skyrocket after lockdown roadmap announcement"- Luke Davis, CEO, IW Capital comments
- Banking industry-funded police unit cracks down on COVID-19 scams, preventing £20m of fraud in 2020
- HSBC Group Chief Executive Quinn reports on 2020 financials
- Barclays partners with Solactive to launch the Solactive Climate Change Europe BTI Index expired
- By 2030, Santander will align its power generation portfolio with the Paris Agreemen expired
- S&P Global publishes report: "Good Earning Capacity Gives Rated Banks In Emerging Markets A Buffer From COVID-19's Effects" expired
- LINE and Mizuho announce additional investment and change to management structure of LINE Bank Preparatory Company expired
- Project finance will survive a prolonged COVID-19 crisis beyond 2022 says Scope expired
- Moneyfacts says current account switching perks make a comeback expired
15th January 2021
Open Banking the perfect pandemic tool–Equifax comments
With COVID-19 related financial fallout set to dominate the credit landscape in 2021, Dan Weaver, Open Banking Expert at Equifax UK, believes Open Banking solutions can provide lenders clarity in a sea of uncertainty:
“With lockdown once again in place across the UK, it’s clear 2021 will be a year of extreme financial flux. While the vaccine roll-out programme will provide an economic boost and eventual easing of restrictions, forbearance measures, such as mortgage holidays and the government furlough scheme, will be wound down. This will lead to income shocks for many, and the potential for a nationwide surge in personal debt.
With the third anniversary of its implementation(13th January), Open Banking is entering a new mature phase of its development. The initiative’s credentials are now widely established, offering creditors the perfect pandemic tool to assess the most accurate picture of an individual’s finances.
Consider someone who has just returned to the workforce after being made redundant or placed on furlough. Traditional credit bureau or legacy data alone would not always provide potential lenders with the most up-to-date information on their current financial circumstances and ability to repay credit at the point of application. Open Banking platforms, through customer consent, pull live data directly from the user’s bank account, allowing creditors to make an informed, responsible and fair decision about their current affordability on the most recent data available–a game-changing factor amid such widespread financial upheaval and rapid change in people’s circumstances.
Open Banking is a tool for our times and it’s vital more credit providers, not just big banks and finance but utilities, insurance, auto and telcos companies, accelerate its adoption. Throughout our society and economy in the past year, we’ve witnessed feats of great innovation, executed at rapid speed. In 2021, we need to apply this transformational energy to the Open Banking landscape, slashing the time it takes for creditors to test protocol and fully set up their solutions.
Three years after its arrival, we’re seeing Open Banking platforms improve digital, real-time income verification rates by more than 25%-which is no mean feat. If an industry-wide, mass acceleration strategy was successfully achieved in 2021, it would prove extremely valuable and timely, and lead to better customer and creditor outcomes throughout the credit space.”
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