Creating Credit Opportunities with Open Banking

Open Banking has the potential to empower more choice for millions more consumers in Europe and Africa - better analytics and breaking down banking silos will be key

Smarter, faster, and fairer credit decisions are set to help drive opportunities and financial inclusion for millions more adults right across Europe. It’s all down to demand-driven innovation in advanced analytics and alternative data.

Across Europe, legislation like PSD2 is driving the growth of a well-informed generation of digital-first, data-savvy customers who are directly benefitting from the opportunities Open Banking and the related financial ecosystems on offer. In the UK alone, nearly 3 million consumers and businesses now use Open Banking-enabled products to manage their finances, access credit and make payments.

It’s clear Open Banking has the potential to directly help empower more choice for millions more consumers in Europe and Africa. At the same time, banks and financial services firms can build and offer a broader array of choices and better serve their customers’ needs.

As a result, analytics, AI and access to alternative data sources are now crucial in helping drive increased access to finance and overall economic growth. Even before the pandemic got underway, there were rising commercial appetites for even greater insights into all consumer segments right across Europe and Africa. In fact, many decision-makers readily admit that their inability to acquire a comprehensive customer view is limiting their growth.

Now, access to well-informed insight is proving critical.

To help our strategic partners optimise credit decisions for all customer segments and meet demand for seamless digital experiences, we’re continually working to help businesses leverage the best data and advanced analytics to optimise their credit decisions and personalise interactions. 

For instance, we've been working to help banks perfect the identification of so-called “customer moments”. These include important life events when timing-wise, the customer is likely to need or be receptive to helpful and timely offers, products or services.

But rather than have each business line marketing their own areas to the customer — be it credit cards, loans, insurance, and so on — as a commercial free-for-all, banks can track every single point of interaction with every customer, allowing the creation of appropriate enterprise-wise strategies - making data analytics a priority to all areas of the business.

While not every customer may qualify for all financial products, FICO has a well-established track-record in helping lenders retain the best and most valuable customers, and to identify and support those customers requiring assistance.

FICO’s analytic heritage and extensive domain expertise combined with market leading software position us perfectly to help personalize interactions and consistently deliver what many analysts favour calling the next best action or next best experience. This enables our clients to build enduring long-term relationships with their customers.

To find out how and where we are helping, simply click here.

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