Equifax forms new alliance to develop open banking products
Equifax, credit information provider Castlight and Oakbrook Finance, the owners of consumer loan brand Likely Loans, have teamed up to develop new products for the 2018 open banking initiative.
Under open banking, Equifax says bank transaction data will play a crucial role in lending decisions. Lenders will have access to real-time and historic account and transaction information, “boosting transparency when reviewing loan applications”. All three want to capitalise on this opportunity and are working together to make it happen.
Jake Ranson, banking and financial institutions expert at Equifax, says since the start of this year, Oakbrook “has been utilising the Castlight Affordability Passport tool with Equifax data integrated”.
Products currently in their pipeline will capture bank transaction data and use this to build characteristics of the individual applying for a financial product, providing a “clearer picture” of a borrower’s financial position and “reducing friction” in the customer application process.
Martin Leonard, COO at Castlight, adds that they can offer those with “poor or flat credit files the opportunity to access finance”.
