Credit, Collections & Insolvency News
TransUnion has launched the latest evolution of its end-to-end, API-driven Open Banking solution, designed to assess income and expenditure, affordability and creditworthiness.
New developments are wide-ranging, with improved analytics capabilities and a streamlined screen journey which includes anti-money laundering (AML) checks. These checks must be conducted as part of the Open Banking process, and are additional to the AML checks that the finance providers themselves must perform.
Shail Deep, chief product officer at TransUnion in the UK said “The ongoing instability resulting from COVID-19 may well drive greater adoption of Open Banking as finance providers seek to have the most up-to-date assessment of a person’s financial standing. As UK households adapt to changing financial circumstances, with four out of 10 (39%) worried about paying bills, it’s essential that lenders are getting the most accurate picture possible so they can assess affordability. TransUnion Open Banking offers a highly-detailed view of a person’s financial data, giving lenders a more comprehensive picture.”
“Consumers are becoming increasingly aware of the importance of their financial standing when it comes to credit assessments. This is particularly true in the current climate, with our study of UK consumers showing that six out of 10 feel it’s important to monitor their credit during the ongoing pandemic. Open Banking puts the consumer in the driving seat when it comes to sharing their financial information, and makes applying for credit quick and straightforward, since the lender has all the information needed.”
David Firth, head of Open Banking for TransUnion in the UK said: “The granularity of the detail available with Open Banking gives lenders greater confidence assessing creditworthiness. This can be particularly useful for those with a thin credit file – individuals who may not have much credit history, yet may not pose a credit risk. Open Banking gives full visibility into financial behaviour; opening up access to credit for some that may have previously found it difficult to access mainstream finance.”
“With COVID-19 putting pressure on personal finances, Open Banking can help lenders to offer suitable products, taking into account rapidly-changing circumstances, and support consumers in accessing the credit they need. Given the growth we were already seeing prior to this, we envisage that we’ll continue to see increasing adoption by both finance providers and their customers, as we navigate these challenging times.”