ABSTRACT OF BANKING ON BANKS:
Europe is currently in the grips of a cost of living crisis, with millions of beleaguered households on the continent in desperate need of help as spiralling inflation and rising prices play havoc on their finances.
Many people are looking for help and support from different sources. To better understand this, in July 2022 CRIF surveyed 7,000 consumers across key European markets – France, Germany, Italy, the Czech Republic, Slovakia and the UK.
People across these markets plan to take drastic action to rein in their spending, as well as turning to a range of third parties for financial support. Among those they would most likely turn to are their banks and other financial providers.
The European financial services sector clearly has a more important role than ever to play in supporting consumers during these difficult times.
By embracing the latest innovations in open banking data, categorisation and analytics, banks and other financial institutions can better understand and serve their customers, quickly and accurately offering tailored products and services that meet their specific needs.
What was once a slow, unintuitive process that might have required a visit to a bank branch, rifling through paper statements, or multiple spreadsheets has been transformed over the last decade by huge innovations in technology and data. And open banking has been at the heart of this.
Open banking is enabling providers to make more accurate and lower risk lending and creditworthiness decisions, based on real-time, in-depth information. No longer reliant solely on traditional methods of credit referencing, this means lenders can responsibly offer services to those with limited or ‘thin’ credit histories.
This enhanced way to assess affordability is crucial to increase financial inclusion and is more pertinent than ever given the current cost of living crisis impacting the whole of Europe.
There is a huge opportunity for both traditional banks and other financial providers to better support their customers. By communicating the benefits of innovations like open banking more people can get the support and services they need to weather the cost of living crisis.