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Experian leverages Open Banking to factor Spotify and Netflix subscriptions into credit scores

The service called Experian Boost has already launched in the US, where nearly five million have signed up in the first 18 months.

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Netflix on TV/ Pixabay

The world’s biggest credit ratings agency is utilising Open Banking to launch a service which will factor in Netflix, Amazon and Spotify subscription payments and other bills to improve people’s credit scores.

Experian is importing the service from the US to the UK and claims it will increase the credit scores of millions, helping them borrow money at a cheaper rate.

Experian said over half, 51 per cent, of individuals using the opt-in free service called Experian Boost will get an improved credit score, meaning around 17m individuals will benefit.

Experian Boost will add in a range of payments via Open Banking, including money earnt and spent, as well as council tax payments, savings and investments, and subscription payments to Netflix, Spotify and Amazon Prime, to credit scores.

It said by signing up to Experian Boost, an individual can boost their score by 66 points, while no individual’s credit score will go down.

The new service is being supported by a television campaign.

In the US, where it launched in 2019, nearly five million Americans signed up in the first 18 months.

It marks the first time that Open Banking transactional data is factored into credit scores and Experian says the service will reward those people who make regular payments to a broad range of organisations.

Clive Lawson, managing director for Consumer Services at Experian, said: “Experian wants people to get credit where credit is due.”

“We are always pushing the boundaries of innovation for two key reasons – to give consumers more control over their financial lives, and to ensure lenders have the information they need to make informed, responsible decisions.”

“There’s never been a more important time for people to engage with their credit scores and Experian Boost will help them to do this.”

“We are incredibly excited to provide this ground-breaking, free service now to help build better financial futures for consumers in the UK.” 

Lawson added: “The Experian Boost service is an excellent example of how open banking can deliver tangible rewards for consumers."

“The potential financial benefits of this new initiative could see some customers having access to more favourable interest rate terms and improved credit limits.”

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