AperiData, a credit referencing agency, has launched a real-time open banking credit score, named AperiScore, designed to help lenders assess the creditworthiness of applicants with limited traditional credit histories. By analyzing millions of open banking transactions, the system predicts an applicant’s ability to repay debts, generating an accurate score.
AperiData highlights the success of a lender that reversed nine in ten marginal declines from traditional CRA ratings after using the real-time data from AperiScore. This score uses up-to-the-minute bank data, offering a significant improvement in risk decisioning over conventional batch-based credit scoring models.
The need for better credit scoring is evident in research by TotallyMoney, which revealed that individuals with poor credit scores could pay £6,670 more in interest charges over 36 months on a £5000 loan compared to those with excellent credit scores. Alastair Douglas, CEO of TotallyMoney, advocates for open banking-based credit scores, noting that access to real-time financial data can result in more personalized loan rates for borrowers.