What lenders use open banking?
Many UK lenders now use open banking to assess creditworthiness, including challenger banks, credit unions, and specialist lenders. Notable examples include Creditspring, Koyo, Updraft, and several buy-now-pay-later providers. Open banking lets lenders view real-time transaction data — with your consent — rather than relying solely on traditional credit scores.
Why do lenders use open banking instead of traditional credit checks?
Traditional credit scoring relies on historical data, which can disadvantage people with thin credit files — including young adults, recent immigrants, and those recovering from financial difficulty. Open banking allows lenders to review actual income patterns, spending habits, and affordability in real time, enabling more accurate and inclusive lending decisions.
Which types of UK lenders are most likely to use open banking?
Open banking is most common among fintech lenders, credit brokers, and specialist personal loan providers. High-street banks are increasingly integrating it into their affordability assessments too. Mortgage lenders such as Halifax and Nationwide have also begun exploring open banking for income verification, reducing reliance on paper payslips.
Open Banking in Practice: In the UK, lenders who access your financial data via open banking must be authorised as Account Information Service Providers (AISPs) or work with an FCA-regulated AISP. You must give explicit consent before any data is shared. The FCA’s consumer duty rules require lenders to use this data responsibly. Read our guide to open banking and lending on openfuture.world.
FAQ
Can I be refused a loan if I don’t share open banking data?
Some lenders may decline applications without open banking data, but others offer alternative verification methods — it varies by provider.
Does using open banking for a loan affect my credit score?
Sharing bank data via open banking does not itself affect your credit score; only the lender’s subsequent credit search will.
Is my open banking data stored by lenders permanently?
No — FCA regulations require lenders to specify how long data is retained and to delete it when no longer needed for the stated purpose.