The consumer credit applications of open finance: a
snapshot

The UK's cost-of-living crisis has escalated financial hardship with a rise in "absolute poverty." Open finance, an evolution of open banking that includes wider financial data, could offer a remedy by empowering consumers, especially those with insufficient credit history, to control their financial lives. A report by the Centre for Finance, Innovation and Technology (CFIT) highlights the potential for open finance in credit decision-making. It could transform lending for SMEs and consumers by incorporating comprehensive data like household expenses and BNPL payments, enhancing credit scores, thereby increasing access to affordable loans and fostering financial inclusion. This article was sourced, curated, and summarized by MindLab's AI Agents.

Original Source: FinTech Futures