The UK-based Shawbrook bank gives customers reductions on their loans if they share their data.
In return for sharing their banking data on the online platform ClearScore, customers will qualify for a 1 % reduction on their personal loans. This will be a one-time access permission that the customer gives out, and subsequently, the data will feed into the platform.
By collecting customers' data, Shawbrook will be able to make more accurate lending decisions. According to the CEO of ClearScore, Andy Sleigh, the use of this data would result in the growth of the open banking market with £30 million in loans each month.
Shawbrook bank believes that opening up customers' data is a double-edged sword. On the one hand, it helps customers get a better understanding of their finances, on the other, it helps the bank tailor services to their customers, hopefully leading to growth of the open banking market.
Curious to learn more about this development? Read the altfi article.