Equifax powers HSBC UK’s first live credit application solution
HSBC UK has created the “first live” use case of open banking for credit applications using the InterConnect cloud platform from Equifax.
“Part of the open banking challenge is educating consumers on what it means in a real-life context…”
According to Equifax, the solution will help quick affordability assessments by allowing individuals to submit their bank transaction information electronically, in less than five minutes, during an application for credit.
Jake Ranson, CMO at Equifax, says: “Part of the open banking challenge is educating consumers on what it means in a real-life context, and a streamlined credit application process that helps them get a faster decision is a great example.”
Each submission is presented directly to HSBC UK’s underwriting team in real-time, providing the bank with view of a customer’s affordability and offering faster lending decisions.
Equifax says InterConnect collates consumer current account transaction information from its third party fintech partners, classified according to UK Financial Conduct Authority (FCA) guideline categories; committed spend, basic quality of living, essential spend, and discretionary spend.
Also today (17 May), account information service provider (AISP) Consents Online revealed it will provide HSBC UK with access to the transaction data of consumers from other organisations under the UK’s open banking programme.
Last week, Equifax submitted a letter to several US Congressional committees providing additional detail on the data elements impacted in its 2017 cybersecurity incident.
