Open banking credit checking brings obvious benefits to lenders, and these benefits could not come soon enough. The task of assessing potential borrowers is becoming more and more difficult as our financial lives undergo fundamental changes in how we bank, how we earn money, and how we spend it. Economic circumstances constantly change the probability of default and the risk of fraud looms ever large.
Aside from the above-mentioned challenges, the user experience in traditional credit checking no longer aligns with what consumers expect from a modern finance provider. Many credit checks still require piles of scanned paper documents (such as tax returns, payslips, bank statements and ID documents), multiple interactions via different channels, and days or weeks of lead time to get approval. However, even with this stack of documents, it can be exceedingly difficult and time-consuming to accurately predict someone’s ability-to-pay.
