Experian Boost: Using Open Banking to Enhance Credit Decisioning
Open banking can be used in a range of different ways by lenders to improve their processes and the application experience. For example, the ability to access a customer’s account and transaction data can be used to support credit risk and affordability analysis of an applicant. This is particularly valuable in those cases where traditional credit bureau coverage is limited.
Despite this, relatively few mainstream lenders have taken advantage of open banking in this way. The degree to which traditional credit bureau or similar services are embedded in workflows is a key factor for many, while there is also concern over the customer experience where an open banking consent process is introduced.
Experian Boost is designed to bring the benefits of open banking-assisted credit risk assessment to established lenders. Consumers are given the opportunity to improve their credit score by sharing their account and transaction data with Experian through open banking. Where the impact is positive, this updated number is provided to lenders via the API used to deliver the Delphi credit score.
In April 2023, Sean Hutchins (Head of Consumer Bureau Specialists) and Sam Coe (Head of Product, Score and Report) from Experian briefed Celent on the Boost offering, positioning, and progress to date.