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Shawbrook offers lending discount for consumers sharing open banking data

Shawbrook offers lending discount for consumers sharing open banking data

UK specialist lender Shawbrook Bank is using Open Banking technology from ClearScore to assess the creditworthiness of potential customers and offering a discount on loans for those who share their data.

Through ClearScore, Shawbrook intends to start integrating Open Banking data with their current decisioning technology. This will enable it to collect real-time income and expenditure information at the point of application, helping to ensure more accurate lending decisions.

Any customer that provides Open Banking data at the point of application through ClearScore and is eligible for a personal loan with Shawbrook Bank, will receive a one per cent APR reduction on the loan rate.

Paul Went, MD, Shawbrook Bank Consumer, says: “The launch of Open Banking was designed to open up the market and make access to finances fairer for all. However, the use of transactional level data remained at the preserve of the franchise banks who owned the customer relationship.

“The ability for us to now have access to the same powerful data marks a significant turning point, allowing us to enhance our credit decisioning to directly benefit our customers. The overarching benefit to all parties is that better credit decisions are made, providing customers with the best possible decision will foster long-term and profitable relationships."

Comments: (1)

Ketharaman Swaminathan
Ketharaman Swaminathan - GTM360 Marketing Solutions - Pune 20 April, 2022, 16:07Be the first to give this comment the thumbs up 0 likes

In Open Banking Needs A Blockchain Boost, I proposed Open Banking Coin, a crypto token that could be used by banks and fintechs to incent customers to share their banking data via Open Banking. (Disclaimers in that post apply to this comment as well.)

One percentage point APR reduction on loan should also do the trick.

PS: Article says one percent APR reduction. IMO, that is too tiny to act as suitable incentive.