Open banking has a range of benefits for lenders, including for peer-to-peer lending platforms, and it has been more important than ever during the pandemic. But in the three years since it was introduced in January 2018 to great fanfare, is the data-sharing initiative really making waves within the sector?
Platforms can use open banking to better assess the affordability of borrowers by using real-time data rather than old bank statements. This also helps to reduce friction in their processes and offer an improved customer experience as well as quicker lending decisions. Open banking can also help to reduce fraud, such as through the confirmation of payees.