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Basiq brings Open Banking to bear on consumer BNPL debt

Basiq brings Open Banking to bear on consumer BNPL debt

Basiq, a NAB, Westpac, Salesforce and Plaid-backed open banking platform, is introdocuing a new feature for lenders to aggregate outstanding consumer loans, including buy now, pay later debt, to get more visibility into customer liabilities.

Pitched as a means for banks and fintechs to help consumers manage and make repayments, Basiq's External Liabilities package surfaces loan data across Australia’s most popular buy now pay later platforms and alternative lenders.

The move comes as consumers increasingly turn to BNPL platforms and alternative lenders as a way to gain access to credit beyond traditional credit card accounts.

A recent review into the BNPL sector in Australia by the country's Securities and Invesment Commission found that one-in-five BNPL users had missed repayments and were experiencing financial hardships due to the interest charged on the debt.

Basiq’s data network allows customers to link liabilities data from over 100 financial institutions for a complete picture of their loan obligations.

Basiq CEO and founder, Damir Cuca, says: “Today, most fintechs and lenders only have limited visibility into a customer’s liabilities. This makes it difficult to help customers track, manage and consolidate debt. Our goal is to accelerate market innovation to guide customer’s into affordability and financial wellness.”

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