People are embracing a new wave of apps and services to help manage their money or share bank account transaction data to improve access to finance, according to the latest statistics.
Experian’s Open Data Platform underpinned more than 20 million of the API requests made in April - 40% of the 49.1 million made in the UK overall - figures from the Open Banking Implementation Entity (OBIE) show. The number of API requests made in the UK has more than doubled since February.
Experian makes multiple API requests for each person to ensure their data is up to date when they initially consent to share their information, and for ongoing requests. Some applications of Open Banking are for one off access to the data, such as understanding the affordability of a mortgage, while personal finance management apps require ongoing access to the data and make many more API requests.
Further growth is expected for May, when Experian expects figures will show it handled about 25% more API requests month-on-month.
Experian’s Open Data Platform is powering many apps including an example from a high street bank, which allows people to see a consolidated list of accounts from various providers in one place. This includes payment initiation services in anticipation of the roll-out of Payment Services Directive 2 (PSD2) and de-regulation of payment initiation across Europe in September.
Its technology has also allowed credit card and auto finance providers, rental property agencies, mortgage lenders and gaming companies to better assess whether services are affordable for their customers.
In the future, Open Banking data could be used alongside an applicant’s credit history to offer lenders a positive view of an applicant’s income and expenditure as part of their financial track record.
Lisa Fretwell, Managing Director of Data Services at Experian, said: “The statistics show more people are using Open Banking services as part of their everyday lives - but this is just the start.
“We’re making significant investments in open data technology, so people can use their information access improved services which are tailored to their needs. It’s these enhanced capabilities - combining consumer contributed data with other sources, such as the credit bureau - which will allow companies to interact with people in new and more meaningful ways.”
Imran Gulamhuseinwala OBE, Trustee of the OBIE, said: “It’s great to see Experian play such a significant role in helping to build consumer trust and confidence when securely sharing their data via Open Banking.
“Helping people and businesses to understand the value of their data and realise the benefits is instrumental in really driving Open Banking to become more commonplace, ultimately delivering better and quicker outcomes for how people can move, manage and make more of their money.”
Open Banking is the secure way to give providers access to your financial information. It opens the way to innovative new products and services that can help customers and small to medium-sized businesses, get access to more dynamic services and better deals.