UK-based Open Banking credit bureau AperiData is introducing its real-time Open Banking credit score ‘AperiScore’ at Open Banking Expo UK & Europe in London this week.
‘AperiScore’ will enable lenders to “move beyond the boundaries of traditional CRA data”, allowing them to score all applicants accurately in real time, including those with limited credit history or thin credit files.
By analysing millions of Open Banking transactions in combination with AperiData’s risk insights, ‘AperiScore’ can more accurately predict an applicant’s propensity to repay and generates a score on that basis.
One existing lender, which has used AperiData’s Open Banking risk insights, reported nine in 10 marginal declines being overturned and approved.
AperiData’s Stephen Ashworth
Stephen Ashworth, chief executive officer of AperiData, said: “Financial assessments should be fair and ethical, and grounded in the most accurate and up-to-date financial information, which is why we have leveraged our powerful proprietary platform to enable a completely new approach to credit scoring and financial assessments.”
He added: “AperiScore will empower businesses to say ‘yes’ more and drive consumer trust by providing precise, real-time data that is accessible and accurately reflects their financial truth. Importantly, it works to nurture an environment of increased choice based on trust for both businesses and consumers.”
At the end of 2023, there were 5.6 million credit invisible adults across Britain, while one in 10 adults have no credit history and face difficulties accessing mainstream financial services, like mortgages, loans or credit cards.
Ed Adshead-Grant, non-executive director at AperiData, said: “Using real-time bank data enables a step change in risk decisioning when compared with traditional scoring approaches.
“AperiData is effectively moving the world from batch to online, creating a whole new capability within the lending and credit scoring space.”
Earlier this year, AperiData received a £1 million investment from PayPoint, building on an existing commercial partnership between the two companies, the focus of which is on delivering Open Banking solutions for clients across multiple sectors, including government, local authorities, charities and housing associations.
In August, PayPoint took majority ownership in obconnect, following a minority investment in July 2022.
Simon Lyons, chief strategy officer at obconnect, added: “Since my journey in Open Banking began, I have believed – and still believe – that one thing makes the most material difference. The advent of a bank account-based credit score based solely on cashflow and cash position.
“This changes everything. This bank-based score can be aggregated with other sources to assess with a greater degree of accuracy than we ever thought. AperiData have done exactly that, they have created the scoring metrics. This is exactly what Open Banking is for, I look forward to the adoption and next steps immensely.”
AperiData is an event partner and will be exhibiting at Open Banking Expo UK & Europe on 15-16 October at the Business Design Centre in London. Click here to find out more.
Further reading: Unlocking the power of Open Banking to enable financial inclusion
