Open Banking for collections: How real-time data enables dynamic payment plans

Collections strategies have evolved. But many still rely on long-standing assumptions: that customers' ability to repay is stable, that financial circumstances remain unchanged, and that static repayment plans will work for most.

Today, that approach is increasingly risky.

Rising living costs and income volatility are widening the gap between what customers should be able to pay and what they can afford in reality. At the same time, regulatory expectations around supporting vulnerable customers continue to grow.

But there’s good news. Open Banking is providing lenders with a new opportunity to respond more dynamically.

By accessing real-time income, spending, and financial resilience indicators, lenders can move beyond fixed strategies and create collections journeys that adapt to customers' current circumstances—supporting more sustainable repayment plans and improving engagement.

The challenge with static collections models

Traditional collections models were designed for consistency: a single process applied to all customers, regardless of individual circumstances.

The problem? Financial lives are not static.

Some customers experience short-term setbacks; others face ongoing financial pressures. Some incomes are stable, others vary month to month. Yet many collections processes still treat these very different realities the same way—often because of limitations in the data informing decisions.

For example, a customer who misses a payment due to an irregular payday might follow the same recovery path as someone facing deeper financial hardship. Without better insight, collections teams risk misjudging both support needs and repayment capacity.

This often results in:

🛑 Repayment requests that don't match real-world affordability
🛑 Escalations that are mistimed
🛑 Support that is too general to be meaningful

How Open Banking enhances collections

Dynamic collections strategies need dynamic data. And Open Banking provides that window into customers’ real-time financial circumstances.

With customer consent, lenders can securely analyse live transaction data, gaining insights such as:

• Income patterns: Frequency, sources, and stability
  
  

• Spending behaviour: Essential spending versus discretionary spending
  
  

• Indicators of financial stress: Benefits income, gambling transactions, persistent overdraft use
  
  

Compared to traditional credit data, which can be several weeks out of date, Open Banking gives lenders a much more accurate and current picture of affordability. This enables better segmentation—not based on credit scores or assumptions, but on real financial behaviour.

For instance, it helps collections teams understand:

• Who could sustain a repayment plan with minor adjustments?
  
  

• Who may require more flexible structures?
  
  

• Who may need more intensive support before recovery efforts continue?
  
  

Dynamic payment plans in action

Once lenders have access to real-time financial data, collections strategies can become more adaptive.

Dynamic payment plans, informed by Open Banking insights, allow lenders to:

• Offer flexible repayment options that align with actual cashflow patterns
  
  

• Adjust contact strategies based on current resilience indicators
  
  

• Prioritise early support for customers showing signs of financial stress
  
  

This dynamic approach means rethinking not just how repayment terms are set, but how they evolve over time—responding to shifts in a customer's financial situation, rather than relying solely on static models.

For example, a customer showing irregular but rising income might benefit from a flexible payment plan that adjusts to cashflow peaks. Another customer with stable but reduced income might need a longer repayment period to maintain affordability without falling behind.

By moving away from rigid structures, lenders can better support customers while improving engagement and recovery outcomes.

The benefits of dynamic collections strategies

More responsive collections journeys offer benefits for both customers and organisations:

For customers:

✅ Repayment plans that better reflect real-world affordability
✅ Earlier access to support
✅ Reduced pressure during periods of financial instability

For lenders:

✅ Higher engagement and contact success rates
✅ Improved repayment sustainability
✅ Stronger alignment with regulatory expectations around fair treatment

Dynamic payment plans, grounded in real-time data, also help reduce complaints, strengthen trust, and support better long-term customer relationships.

Open Banking for collections: The smarter way

As financial lives become more complex and volatile, static collections strategies are no longer enough. Open Banking for collections provides lenders with the tools to design more dynamic and adaptable repayment journeys—based not on assumptions, but on real-time financial realities.

By leveraging live data to support dynamic payment plans, collections teams can improve customer outcomes, reduce risk, and build a more resilient, responsive collections process.