A survey of 100 leading global credit experts* has revealed nearly eight out of ten (77%) believe Open Banking will make the market for credit more competitive, with only 6% believing the initiative would make it less competitive.
The findings come from the recent Credit Scoring and Credit Control XVI Conference at University of Edinburgh Business School, where 400 industry professionals and academics from over 40 countries gathered to discuss the future of credit scoring and the burning topics within the sector.
On other subject matters, such as Brexit and the future availability of credit, opinion was much more divided among the respondents. Four in ten experts (42%) believe that if the UK left the EU without a deal, this would lead to an increase in demand for consumer credit, while nearly a third (32%) think this would reduce demand.
More than half of respondents (51%) from Europe (excluding the UK) feel credit would be more available in their respective country in the next year, versus just 21% who feel it would be less available. In comparison, respondents from the UK have a much bleaker outlook, with just over a third (35%) believing credit would be more available in the next year in the UK, and 38% thinking it would be less available.
Professor Jonathan Crook, deputy dean and director of the Credit Research Centre at University of Edinburgh Business School, said “Open Banking, while still in its infancy, is allowing banks and companies offering credit to gain a greater financial understanding of existing and potential customers, and consumers to have greater autonomy and comparability when choosing financial products.”
“It’s little surprise to see global industry experts predicting positive outcomes related to Open Banking and its impact on the market for credit. As Open Banking platforms become more widespread, we expect to see an increasingly transparent environment, where credit is both more available and competitive.”