The Impact of Consumer-Permissioned Data on Financial Product Design

We’ve written extensively about how consumer-permissioned data can be used to fine-tune the accuracy of credit scoring and broaden financial inclusivity. With participation from the credit and lending ecosystem, it stands to do both, but its capabilities go further. Consumer-permissioned data could revolutionize the design and customization of financial products, too.

When consumers can grant access to their financial data, lenders see a more comprehensive view of their financial behavior. Subsequently, it has transformative power to influence product design and the overall financial ecosystem.

The Reality of Financial Fragmentation and Lender Blind Spots

We live in a digital-first financial world where consumers often manage accounts with multiple institutions. This fragmentation means that no single bank or credit union has a complete view of a consumer’s financial activities. For example, a consumer might have a savings account with one bank, a checking account with another, and a credit card with yet another institution. Each bank……

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