How we built an app to revolutionise credit scoring – in just a few hours

 
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At a recent event, we showed how anyone can revolutionise a process and build an app in just a few hours, using our self-service platform. Our example this time was credit scoring.

Credit scoring. A murky process often carried out behind the scenes, leaving the end customer none the wiser about why credit decisions have been made. So at a recent Finovate event in London, we showed businesses how they can transform credit scoring – quickly making better decisions and doing it in a customer-friendly way.

We built the credit-scoring app just a few days before the event to show that once you have access to financial data through a single API – the connections used by most banks to give access to data – anyone can build cutting-edge products on our self-service platform in just a few hours.

So how does it work?

Using account aggregation, we created a service that lets any company offer people loans in a smooth and compelling way. And it looked like this.

The journey is quick and easy – both for the business and the customer. And the end result is a lot clearer because people are given their credit score and shown what was used to calculate it. It’s transparent and done in an instant.

Building a credit score that uses data aggregated from all of a customer’s bank accounts, allows businesses to do two things: 1) massively improve their acceptance rates and 2) save time running traditional “credit checks” because of the depth of customer data that can be automatically gathered and analysed.

When you can instantly see up-to-date info about spending, debt, recurring costs, savings and investments, credit scores offer a more informed and more accurate view of a person’s financial health.

It can also open the door to customers who don’t have an official credit history – perhaps people who live abroad or those who haven’t needed financial products in the past. Quality credit scoring greatly reduces the risk of turning away good customers because they have no track record.

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What’s on your wishlist?

This is just one example of how to revolutionise a process with a quick and relatively simple customer use case. Having access to financial data – and the ability to build high-quality products on a self-service platform – means you can take new products to market in a matter of hours rather than weeks or months.

To find out more about the opportunities open banking is creating and why the time to act is now, download our new report – Why 2019 is the year of open banking.

 
 

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