March, 2020
March, 2020
The new era of Open Banking, enabled by PSD2, presents a number of new market opportunities. The readiness of customers to share data on their overall financial position remains the key factor in seizing these opportunities, alongside a data-driven approach.
CRIF, together with SDA-Bocconi and in collaboration with Nomisma, has conducted research into how ready Italians really are for the new Open Banking era. In Italy, in answer to the question “Are you willing to give banks an overall view of your financial situation, including in relation to other banks?”, 20% responded that they are willing to provide lenders with access to account information in order to provide a more customized offer (in Europe the figure ranges from 40% to 60%). 76% responded positively in return for certain types of financial compensation (e.g. discounts, coupons, etc.). A reassuring finding when you consider that the answers were collected before PSD2 came into force.
From research carried out in 2019 in Germany (a country where the use of Open Banking models started earlier) on a representative sample, it emerged that around 1 in 5 of those interviewed stated that they use Open Banking services, with a 6% increase compared with the previous year.
N.E.O.S. – New Evaluation Open Suite – the solution developed by CRIF which allows credit institutions to implement new “analytics as a service” and “customer insights” to seize the new open banking paradigms. CRIF’s multilingual Categorization Engine, based on CRIF taxonomy with artificial intelligence, machine learning and AI Detection methodologies, enables a very detailed and accurate identification of spending categories. This translates into the improved performance of creditworthiness models by up to +16bp for the «Credit Invisible» segment (those without a credit history). What’s more, there are original KPIs which enable the identification of recurring behavior for both individuals and companies, which are not immediately detectable to the naked eye.
Many Italian credit institutions have decided to combine indicators in line with the legislative and business changes that have occurred since 14/09/2019 (post-PSD2) with traditional assessment metrics, provided by CRIF for more than 30 years.
Among these are “unconventional” lenders, P2P lenders and online credit platforms, recognized on the market for their constant attention to technological innovation and a fast and immediate “Fintech-like” customer experience, including Prestiamoci, the first to be up and running, Credimi and MotusQuo.
“With CRIF, we have found a reliable and innovative partner. We started using CRIF’s NEOS solution, which enables us to make the most of the opportunities offered by PSD2. We can claim to be the first on the market to test the benefits of Access To Account (XS2A) services and CRIF’s innovative augmented intelligence metrics”, stated Daniele Loro, CEO of PRESTIAMOCI.
In the open banking era, the “augmented assessment” of creditworthiness can be done not just using predictive indicators but also with the support of CRIF BPO, the specialist CRIF team dedicated to Business Process Optimization, through which it is possible to collect and analyze current account information for the “credit invisible” segment, i.e. those subjects that don’t have a credit history or where access to accounts isn’t possible through the online channel.
NEOS brings tangible benefits to the different stages of the lender journey:
Success has not just been seen in Italy, but also beyond national borders.
In collaboration with CRIF Realtime and Credit Data Research, CRIF has implemented the first “Open Banking” score in the UK, used on a daily basis by Funding Circle (the largest alternative lender in the world) and by Lloyds Bank for business assessment.
For more information, contact: marketing@crif.com
