MACCLESFIELD 15 DECEMBER 2020
My previous article back in October 2020 focused on a report by Credit Strategy indicating that the number of consumers in the UK who had adopted Open Banking had surpassed 2 million at the time of writing.
This trend looks like it will continue into Q3 and beyond, but the question still remains how financial institutions will position open banking and use it in such a way that will benefit both lenders and consumers for the foreseeable future.
With very real benefits for both lenders and consumers, it’s led to many financial institutions taking more of an interest in how lenders can leverage data and improve the experience for the consumer. Now, Monevo has partnered with AccountScore in order to make Open Banking available for consumers and lenders that use Monevo’s loan marketplace.
To explore this partnership further, and to demonstrate how Monevo are currently implementing Open Banking, I’ve offered a deeper explanation of the current state of play below, along with predictions for how we will continue to derive value for lenders and consumers in 2021.
How is Monevo currently using Open Banking?
As a business, Monevo agrees with the market in that Open Banking is a good thing for consumers, allowing them to search and find the best loan products for them. It is also equally beneficial for lenders, who can leverage the data and provide more accurate credit products.
Therefore, like many other financial institutions, Monevo has integrated Open Banking into the standard customer journey. To make sure that customers get the best possible experience when using Monevo’s loan marketplace, we’ve partnered with AccountScore.
At this stage, we’ve allowed a percentage of customers to connect to their bank at the point of application and we’re working with those lenders who are ready and able to use that information, as part of their decisioning process. This will provide lenders with a holistic picture of an individual’s financial circumstances and give them the ability to offer more personalised products.
Monevo’s partnership with AccountScore
All this would not be possible without our partnership with AccountScore, giving us the ability to seamlessly build in an Open Banking solution that works for both consumers and lenders alike.
Emma Steeley, CEO, AccountScore, commented on the new partnership “We are exceptionally proud to announce our new partnership with Monevo and are thrilled to be bringing the data-driven intelligence of Open Banking to the largest personal loan marketplace in the UK. Our straightforward solution has already proven to be revolutionary for customers and lenders alike and we are excited to see this partnership enable even more individuals to benefit from the innovative, user friendly technology. We look forward to working closely with Monevo and enabling more individuals to access the vital funds they need.”
Where does Monevo go from here?
After making such a significant step forward with the implementation of Open Banking, we are now analysing the data and working with AccountScore and lenders to see how Monevo can refine the journey even further. A big part of this is finding out which part of the customer journey gets the most engagement from consumers and which data points are proving to be most valuable for lenders. We will continue to use this information to refine Monevo’s current Open Banking solution as much as possible.
As we move into 2021, Monevo will be keeping a keen eye on how Open Banking continues to be received by consumers and what further benefits can be derived by lenders. The aim is to further improve the personalisation of credit products and provide a better outcome for consumers and lenders wherever we can.