EMEA businesses turn to Open Banking data to support their growth plans

New research finds that firms are looking to improve decision making to support sustainable lending | Macroeconomic pressures are prompting more focus on future-proofing risk assessments and investment in new technology

London, 23 November 2022: 86% of businesses have already invested, or are planning to invest, in Open Banking, according to the latest research conducted by Forrester Consulting on behalf of Experian. Experian’s 2022 Business and Consumer Insight Report found that businesses are investing in the right technological tools to address consumer concerns and overcome business challenges. 

The research found that nearly half of consumers (47%) are feeling anxious about their financial situation, as they become increasingly worried about managing their money amidst broader macroeconomic uncertainties – including inflation arising from global supply chain disruptions and geopolitical instabilities. To cope with the rising cost of living, 33% of consumers are borrowing more than they used to. 

“Data is extremely important to enable businesses to make better informed decisions based on insight, helping to improve the service provided to customers during these difficult economic times,” says Malin Holmberg, CEO, EMEA & APAC, at Experian.

In order to better support customers, businesses have invested in Open Banking to improve the accuracy of credit risk management and to enable fairer access to credit for consumers and small businesses, helping companies lend responsibly. More than half (52%) of businesses see significant value from their Open Banking projects. The depth of transactional data allows businesses to better assess creditworthiness and affordability for new applicants and in turn ensure more accurate decisions that support sustainable lending. 49% of consumers are willing to share this transactional data from their banking app, an increase from 43% in 2021.

Experian’s 2022 Business and Consumer Insight Report interviewed 647 business decision-makers and more than 3,000 consumers across seven EMEA markets: Denmark, Germany, Italy, Netherlands, South Africa, Spain, and Turkey*. The report covers a range of topics, including how Financial Services and Telecoms businesses are boosting investment in technological solutions, such as Artificial Intelligence (AI) and Machine Learning (ML), to improve performance, ensure secure services and deliver a convenient and highly personalised customer experience.

Technology is key to alleviate consumer anxiety and elevate the customer experience

As consumer anxiety increases, people are becoming more selective about the brands they use to help manage their finances. In fact, 46% of consumers are unlikely to recommend a company to a friend after receiving a poor customer experience online. However, speed and simplicity online is becoming more important for consumers. A simple application process is now one of the most important factors when considering which company to get a loan or credit card from. Financial Services and Telecoms providers are, therefore, investing in cutting-edge technology to meet rising consumer expectations around convenience and simplicity online.

Fraud prevention and customer experience are the top business priorities in the next 12 months, and as such businesses are investing in technology in these areas to tackle the increasing threat of fraud whilst also digitising the customer journey. Advanced analytics, such as AI and ML, and Open Banking, are also receiving investment with deployment across a range of business functions designed to streamline the customer experience and enhance the performance of critical operational processes. 43% of businesses feel that the need to update risk and fraud models in faster cycles is making it difficult to make credit risk and affordability decisions. As a result, firms are investing in analytics and software to improve agility. 62% of businesses believe that AI and ML are already radically transforming the way they operate, and 44% of businesses are expanding or upgrading their adoption of cloud-based software.

“The complex and uncertain nature of today’s economic landscape has created new challenges for consumers and businesses,” added Malin. “To combat these obstacles, businesses are increasingly committed to technological solutions – such as Open Banking, AI, and ML – which they see as central to creating a better customer experience, more accurate decisioning, and a safer service for the customer.”

To learn more about the Experian 2022 Business and Consumer Insight Report, click here

*Turkey research conducted with businesses only


About Experian

Experian is the world’s leading global information services company. During life’s big moments – from buying a home or car, sending a child to college, or growing a business by connecting with new customers – we empower consumers and our clients to manage their data with confidence. We help individuals to take financial control and access financial services, businesses to make smarter decisions and thrive, lenders to lend more responsibly, and organisations to prevent identity fraud and crime.

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