TransUnion launches Open Banking early adopter programme

We're excited to have launched an Open Banking early adopter programme after receiving permission to operate as an Account Information Services Provider (AISP) from the Financial Conduct Authority (FCA).

Following extensive testing and consultation with a range of clients across a number of industry sectors, TransUnion Open Banking offers an end-to-end Open Banking service, specifically designed to assess income and expenditure, affordability and creditworthiness. The new service combines all of the elements required for clients to access and utilise the UK’s new Open Banking initiative, and provides consumers with a trusted route to realise the power of their own financial data.

An easily-integrated solution

TransUnion Open Banking has been designed to enable greater engagement of consumers and more informed lending decisions. The API-driven, specially built categorisation and insight engine is a one-stop-shop Open Banking solution and includes:

  • Screen flow – End-to-end screen process that takes the consumer through the required consent notifications, authentication and authorisation process with their bank
  • API hub – Connection to the consumer’s bank to retrieve the transactional information that has been consented
  • Categorisation & Open Banking Report – Consented data is categorised and an Open Banking Report (OBR) with over 2,000 predictive credit and affordability characteristics generated
  • Data delivery – Data is sent back to the client via API or via TransUnion Decisioning Platforms. The data is then used to inform customer interactions 

Will North, core credit director for TransUnion explains: “We’ve developed a service that can be easily deployed across any existing infrastructure, whereby clients can select the elements they require with minimal need for integration.

“There has been a lot of noise about Open Banking but many in the market have been left wondering what to do, either unable to make the necessary investment needed for an in-house solution or unsure of what benefits it can truly bring. One of these benefits for businesses is enhanced data and insight, so this is more relevant than ever in light of the FCA’s new rules on affordability assessments, which came into effect on 1st November 2018.

“We’ve already tested a number of use cases with multiple businesses, including leading financial services providers, and are now launching an early adopter programme which means clients and their customers can benefit almost immediately.

“In the property sector, for example, we’ve been working with businesses that are keen to use Open Banking for tenant vetting, by identifying income and expenditure, employer information and rent recognition, and helping ensure a smoother application process for prospective tenants. The visibility of rental payments can also assist lenders when assessing mortgage applications for first-time buyers that are keen to utilise their rental payment history to help demonstrate affordability.”

Categorisation is the foundation, analytics is the key

TransUnion Open Banking uses specially built proprietary technology and enables data to be classified into 20 macro groups and more than 175 sub-categories through the categorisation engine. Categorised data is then processed through a number of analytical models which focus on salary, expenditure, affordability and creditworthiness. These models will be tailored for different sectors and requirements to help ensure relevance and accuracy, and are being developed to complement TransUnion’s existing affordability and credit products.

David Firth, head of product for TransUnion Open Banking, adds: “A smooth customer journey that fully informs consumers of their rights and what the data will be used for is essential. Equally, once the data has been provided it is imperative it is used for the benefit of the customer, and that starts with accurately categorising and analysing the information received.

“Open Banking isn’t just about gaining consent, it’s about helping both the client and consumer benefit from more informed decisions and tailored services and products. There’s a lot of anticipation, given the power of the data which Open Banking unlocks, and we’re confident we can deliver on this vision and help make it a success.”

For further information about TransUnion Open Banking visit www.transunion.co.uk/open-banking