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AperiData unveils an Open Banking-powered credit score solution

Tuesday 15 October 2024 11:51 CET | News

AperiData, an Open Banking credit bureau, has announced the launch of AperiScore which will enable lenders to optimise how they score applicants.


AperiData is regulated and authorised by the Financial Conduct Authority (FCA) as a Credit Reference Agency (CRA) and an Open Banking provider. With these authorisations, AperiScore supports lenders in transcending the limitations of CRA data, allowing them to assess all applicants accurately, even those with limited credit histories or thin credit files.

 

1 in 10 adults lack a credit history

The population of credit-invisible adults in Britain is increasing, rising from 5 million in 2022 to 5.6 million by the end of 2023. Additionally, one in ten adults lack a credit history, which presents obstacles in obtaining conventional financial services such as mortgages, loans, or credit cards.


AperiScore uses AperiData's comprehensive risk insights and advanced models to analyse millions of Open Banking transactions, accurately predicting an applicant's likelihood of repayment and generating a corresponding score. This solution works towards increasing acceptance rates and improving access to financial products for underserved individuals.

 

AperiData unveils an Open Banking-powered credit score

Better access for financially underserved people

According to AperiData’s information, one lender experienced a 90% reversal of previously marginal declines, leading to approvals, by leveraging AperiData's Open Banking risk insights. The introduction of a bank account credit score complemented the company’s existing product offerings, resulting in fairer credit decisions and promoting financial inclusion. This approach has led to increased approval rates, reduced defaults, and expanded access to financial services for the financially underserved.


Representatives from AperiData stated that leveraging real-time banking data represents an advancement in risk decision-making compared to conventional scoring methods. AperiData is transitioning from batch processing to online capabilities, which could help the lending and credit scoring landscape.

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Keywords: banking, fintech, data, financial institutions, credit access
Categories: Banking & Fintech
Companies: AperiData
Countries: United Kingdom
This article is part of category

Banking & Fintech

AperiData

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