This document discusses the growing use and value of Open Banking APIs despite initial skepticism. It provides data showing increasing consent rates for Open Banking access over time. It then outlines several use cases for Open Banking data, including identity verification by matching bank account data to public records, income verification by analyzing transaction histories, and improving credit risk assessments by incorporating additional financial information from bank accounts. The conclusion emphasizes that while not perfect, Open Banking is working and gaining momentum with many sectors using it for different applications.

1. Confidential and Proprietary

2. Open Banking: Don’t believe
the hype!
Emma Steeley
CEO AccountScore
Daniel Weaver
Head of Innovation, Equifax

3. Confidential and Proprietary3
No one is using
Open Banking APIs!

4. Confidential and Proprietary4
In the press

5. Confidential and Proprietary5
No one will ever
submit their credentials
via Open Banking!

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Open Banking is growing month on month
Screen-Scraping Open Banking
Consents Submit 87% 88%
Entered Credentials 70% 79%
Complete 62% 89%
90%+ of customers, have a positive confirmed
Open Banking identity verification when cross
checked with Equifax Bank Account Verification
95% of observed accounts provided have a
monthly credit turnover > £500, median monthly
credit turnover is in excess of £2,500
46+AccountScore clients from many different
sectors
30% of the clients are using recurring access to
Open Banking. Consent submission rates are
approximately 3% lower for recurring data access.

7. Confidential and Proprietary7
It’s just about
aggregating the data!

8. Confidential and Proprietary8

9. Confidential and Proprietary
Customer journey demo
9
Watch video

10. Confidential and Proprietary
Open Banking: ID and anti-impersonation
10
Customer
data
Equifax data
Daniel Weaver
01-01-1980
1 King Road
Wrexham
LL11 1AA
Open Banking data
Daniel Weaver
01-01-1980
1 King Road
Wrexham
LL11 1AA
99-99-99
999000
Trans Date Sort Code AccNo Transaction Description Debit Amt Credit Amt
30/09/2018 99-99-99 999000 EQUIFAX LTD 2000.00
29/09/2018 99-99-99 999000 CHEQUERS E17 15.60
25/09/2018 99-99-99 999000 SOURDOUGH PIZZA CO 25.55
24/09/2018 99-99-99 999000 WREXHAMFOOTBALL CLUB 10.00
22/09/2018 99-99-99 999000 EE & T-MOBILE 45.00
21/09/2018 99-99-99 999000 SUBWAY 25.00
21/09/2018 99-99-99 999000 TSB CREDIT CARDS 31.31
Customer matched to the account
Customer has been authenticated by their bank

11. Confidential and Proprietary
Open Banking: Income Verification
11
Approach to calculating income
from transaction data
1. Obtain the credit transaction
payments (through Open
Banking)
2. Categorise the transactions
3. Assess the frequency and
sources of income
4. Assess the stability of income
payments
5. Calculate/verify the income

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Open Banking: Income Verification
12
Description Categorisation Month 6 Month 5 Month 4 Month 3 Month 2 Month 1
ASDA PLC SALARY
WF CBC SALARY
DWP BENEFITS
2,1232,1231,065
1,215 1,514 832
138138138 138 138 138
Declared gross annual income = £33,000Derived net monthly income = £2,165

13. Confidential and Proprietary13
Open Banking: Credit risk assessment
Segmentation based on CRA data
Segmentation
based on
transaction
data
Applicant
Positive Negative Thin File
Positive
Negative
Thin File

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Open Banking: Credit risk assessment
Additional data for creditworthiness assessment
 Salary and Income – amount, granularity, history, stability
 Employer – number, change
 Rental payments
 Council tax payments
 Insurance payments
 Utilities payments
 Gambling habits
Real-time data – short term loans
Attitudes to spending and saving
Early warning to changes in lifestyle, financial status and
signs of potential vulnerability
INTRODUCING
Transaction Data
Credit Risk Index
Up to 20 point Gini
improvement on a
thin file segment

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In conclusion
Open Banking is not perfect (yet), but it does
work!
Customers are willing to share their
data in return for…
Open Banking is rapidly gaining
momentum and is now being used in
many sectors for multiple different use cases
Start small and start soon!

16. Thank You
emma.steeley@accountscore.com
daniel.weaver@equifax.com