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Sep 2021 | Open Banking | Open Banking

Transaction Insights allows you to unlock the full value of Open Banking. We know businesses are constantly looking at new data sources to enhance performance in decisioning – both for affordability and creditworthiness. Transactional data from Open Banking provides greater depth and therefore greater insight into the financial health of consumers and businesses. The result is more accurate decisions that lead to greater profit and less bad debt.

62% of businesses believe they need more data to fuel their analytics, and 65% are exploring different data sets to improve accuracy of analytics*. Transaction Insights from Experian enables businesses to get the most out of Open Banking, by providing an end-to-end proposition that includes API connectivity, categorisation and also affordability and probability of default modelling and scores, where we work with your teams to fully assess your specific goals to deliver an optimal uplift in your performance. We then work with you to build and deploy the improved models into your decisioning workflows.

How does Transaction Insights help?

  • IMPROVE ACCURACY: Transactional data allows you to significantly improve the accuracy/predictiveness of the affordability and creditworthiness assessment. The data is more granular – allowing you to gain a deeper understanding of how much customers can afford to borrow and what they are able to repay so you can forecast with greater accuracy.
  • INCREASE ELIGIBILITY: Transactional data provides positive and negative indicators that can also be used to design more effective cut-off strategies. This means you can open up more revenue for thin-file applicants and widen the total pool of potential eligible customers. This can be done without affecting the risk appetite, in fact risk can be reduced further.
  • IMPROVE CUSTOMER CARE: Transactional data can be used to enhance early warning indicators to signal customers falling into debt and allow you to take fast and appropriate action to minimise losses. Identify signs of stress through an aggregated view: for example, a fall in income combined with a shift in spending to high priority items.
  • REDUCE OPERATIONAL COST: With categorization of bank transactions, manual processing can be removed, reducing the operational cost of underwriting. This means a faster application process for the customer.
  • FASTER TIME TO YES: With Open Banking, the customer can receive a fully digital journey without a ‘break’ or interruption. The customer no longer has to manually source financial statements for submission. This improves the ability to automate more of the journey, speeding up the time to yes.

Transaction Insights

 

We’ve been building Open Banking capability for over five years and have developed a series of use cases to support clients with different needs. Take a look at our use case brochures for more information on how we can support your business and unlock the full value of Open Banking.

*Base: 598 senior decision-makers in financial services and telecommunications firms globally Source: A commissioned study conducted by Forrester Consulting on behalf of Experian, August 2021

Transaction Insights for Affordability

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Transaction Insights for Probability of Default Models and Scores

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Transaction Insights for Early Warning Strategies

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Transactional Insight to deliver improved CX

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