Experian partners Envestnet | Yodlee for Open Data

Through this partnership, Envestnet | Yodlee became Experian’s official Open Data API provider in Australia. The collaboration will also enable Experian to Experian to integrate the APIs its needs to access data from data holders under the Consumer Data Right (CDR), including more than 70 leading Australian financial institutions, as well as the Big Four banks. 

In December 2022, Experian submitted its request to the ACCC to become an Accredited Data Recipient under the CDR. Experian is an Open Banking services provider in regions such as Latin America, Europe, the Middle East, Africa, North America, the UK and Ireland, and Asia Pacific. The company’s Open Banking strategy in Australia will focus on delivering accurate affordability assessments, which can help lenders make informed lending decisions at scale. 

By leveraging Envestnet | Yodlee’s Data API, Experian will be able to improve its software solutions and allow them to help lenders use Open Data sources instead of credit application processes. These processes often require customers to print and upload manual statements and enter important data manually, which can become cumbersome and time-consuming for all parties involved. 

The new solutions are able to access transaction data in real-time and allow lenders to assess whether a line of credit is suitable and affordable for that particular customer. The process also minimises fraud risk and data error risk. 

In the context of current inflationary pressures, lenders can also leverage these Open Data sources to provide personalised support to customers. Experian officials cited by fintechaustralia.org.au talked about Open Data solutions and how they can solve two important challenges for Australian lenders, namely accuracy of data to support responsible lending, as well as streamlining the customer experience in order to arrive at a decision sooner. 

A practical approach to Open Data involves identifying income and spending habits in order to make a faster decision on a loan application or to offer proactive support.

Other Experian partnerships

In February 2023, Experian has partnered with Zopa Bank in an effort to provide customers with better credit options. As a result of this collaboration, Experian Boost data will be included in Zopa Bank’s credit card decision process, aiming to improve customer experience by providing them with better rates and offering them reduced APR services for a fixed period of time. 

Clients can benefit from this feature regardless of whether they apply for a Zopa credit card through Experian, Zopa, or another site. However, the companies will provide their users with a reduced APR if they apply for a Zopa Credit Card using the Experian Boost data.  

In January of 2023, the company announced a collaboration with Credefi, which is a crypto peer-to-peer lending platform. Following this partnership, Credefi was able to position itself as `Credefi – Powered by Experian`. 

The deal aimed to broaden Credefi’s reach and access to institutional-grade clients. It also formalised bilateral cooperation between the two companies. Moreover, it brought out the standards the team strives to maintain in terms of service quality, safety and security of its users.