People are embracing a new wave of apps and services to help manage their money or share bank account transaction data to improve access to finance, according to the latest statistics.
Experian’s Open Data Platform underpinned more than 20 million of the API requests made in April – 40% of the 49.1 million made in the UK overall – figures from the Open Banking Implementation Entity (OBIE) show. The number of API requests made in the UK has more than doubled since February.
Experian makes multiple API requests for each person to ensure their data is up to date when they initially consent to share their information, and for ongoing requests. Some applications of Open Banking are for one off access to the data, such as understanding the affordability of a mortgage, while personal finance management apps require ongoing access to the data and make many more API requests. Further growth is expected going forward.
Experian’s Open Data Platform is powering many apps including an example from a high street bank, which allows people to see a consolidated list of accounts from various providers in one place. This includes payment initiation services in anticipation of the roll-out of Payment Services Directive 2 (PSD2) and de-regulation of payment initiation across Europe in September. Its technology has also allowed credit card and auto finance providers, rental property agencies, mortgage lenders and gaming companies to better assess whether services are affordable for their customers.
In the future, Open Banking data could be used alongside an applicant’s credit history to offer lenders a positive view of an applicant’s income and expenditure as part of their financial track record.
Source: Finextra.com
