The pandemic has accelerated consumer adoption of new technologies and now over half of UK credit providers plan to implement Open Banking in 2021.
Open banking was long expected to shake up finance in a number of ways and for lenders that day has come.
More than half (55 per cent) of UK credit providers are planning to implement Open Banking in 2021, according to research by Equifax.
In the next 12 months, a survey of more than 100 respondents found, more than nine out of 10 (93 per cent) are planning to do so.
Equifax also found that c. four million UK consumers and small businesses are now active users of open banking-enabled products.
Emma Steeley, CEO at AccountScore, which was acquired by Equifax in 2021, says open banking allows credit lenders to build deeper understanding of a consumer's financial life. This allows “more rigorous financial checks” and therefore a fairer, more affordable journey for both lenders and consumers.
“Access to fast, accurate and up-to-date transactional data, via Open Banking, has enabled credit providers to understand the potential circumstances of their customers throughout the pandemic, and responsibly lend as a result."
Equifax, she adds, has experienced more than a 300 per cent increase in Open Banking adoption over the past 18 months, with providers who do not adapt at risk of lagging behind and overlooking the curve of digital innovation. Open Banking is undoubtedly a crucial part of the credit industry’s future.”