You are here: Home - News -

HSBC starts using Open Banking data to assess customer affordability

  • 18/05/2018
  • 0
HSBC starts using Open Banking data to assess customer affordability
HSBC has taken a significant step into the Open Banking regime by signing a deal with a third-party software and analytics provider to allow it to launch consumer products utilising data through the initiative.


The agreement with Consents Online will mean, where permitted by customers, HSBC can tap into data from other banks and financial institutions when handling applications.

HSBC is using Open Banking data for credit applications including personal loans and credit cards initially, but intends to expand it into other areas including mortgage applications in due course.

The process involves gathering consumers’ consent to pull their current account transaction information, and then classifying each outgoing and incoming transaction according to Financial Conduct Authority (FCA) guideline categories; committed spend, basic quality of living, essential spend, and discretionary spend.

HSBC told Mortgage Solutions that affordability checks often took weeks to complete and required customers to provide three months’ bank statements, potentially posting paper copies or delivering them into a branch.

However, the new process is typically completed in around two minutes.

“There’s a relatively small number of customers using the journey now but as time goes on we’re hoping it will grow,” an HSBC spokeswoman said.

“Our intention is to roll it out more broadly to other product areas, but we don’t have a time scale on that,” she added.


Developing products

Consents Online said its data analytics platform AccountScore specialises in transaction data analytics for consumer and business lending.

It said this included developing products to help organisations better utilise data within lending decisions and make the application process smoother for customers.

Products offered by the software firm include:

  • Verify, which removes the need for manual payslips when completing financial applications;
  • Enrich, which categorises transaction data to provide more detailed insight on customers; and
  • Events, an alerts system which notifies financial service providers to events in a customer’s life which could alter their financial requirements.


Customer data control

HSBC will also use Consents Online’s consent management system which allows consumers to view and control where their data is being accessed and for what purposes, with the ability to turn it off and on immediately.

Consents Online commercial director Emma Steeley said: “Our B2B clients of different sizes, sectors and countries have demonstrated the power of transaction data to revolutionise customer insights.

“We are delighted to be helping HSBC UK with this journey.”

There are 0 Comment(s)

You may also be interested in

Business Skills

In this section, we offer short ‘how to’ guides on harder to crack areas of business. From social media, to regulation or niche product areas, we cover it all.


Our journalists interview key industry entrepreneurs, strategists and commentators for day-to-day market insight and a strategic view of where the industry is heading. We offer lessons for success and explore the opportunities for your business

Success in Practice

Here, we share case studies fleshing out best practice to help you decide what could work for your business. Take a look at how others approached complex tasks like launching a new mortgage lender, advising on a new product area or deciding to specialise in another. Learn from others mistakes and triumphs.


Each week, we ask top mortgage and property commentators with a unique perspective to examine a key news headline, market move or regulatory or political issue.


Vote in our weekly poll here. It’s your chance to tell us what you think and be heard on the top news stories of the week. Review our archive to find out what your industry really thinks and all our coverage of the results.

Top Comments

Be part of the conversation on Mortgage Solutions. We want to hear from you. We have a tool called Disqus to tell us which stories get the most comments each week. Every Friday, the team picks the most thoughtful or opinionated contributions from our readers to enjoy again. Don’t forget to share your favourite stories from the site on social media to keep the conversation going.
Read previous post:
City watchdog consults on unfair mid-contract changes

The Financial Conduct Authority (FCA) has proposed guidelines firms should follow when drafting and reviewing contracts - particularly when varying...