Experian appoints Envestnet | Yodlee as Open Data API provider in Australia
Leading global information services company Experian, has today announced the appointment of data aggregation and analytics platform Envestnet | Yodlee® as its official Open Data API provider in Australia. The collaboration will enable Experian to integrate the APIs necessary to access data from data holders under the Consumer Data Right (CDR), including the Big Four banks as well as more than 70 leading Australian financial institutions.
The collaboration comes as Experian submitted its application to the ACCC to become an Accredited Data Recipient under the CDR in December, a critical step in cementing its place in the Australian Open Banking ecosystem.
As an experienced Open Banking services provider across all regions in which they operate including North America, UK and Ireland, Latin America, Europe, Middle East, Africa and Asia Pacific, Experian’s Australian Open Banking strategy will focus on fast and accurate affordability assessments, which are critical in helping lenders make responsible lending decisions at scale. Powered by Envestnet | Yodlee’s Data API, Experian will bolster its software solutions to enable lenders to draw on Open Data sources to replace cumbersome credit application processes that require customers to print and upload manual statements and enter important data manually.
The solution accesses transaction data in real-time, it improves the accuracy, reducing fraud and data error risks while helping lenders quickly establish whether a line of credit is suitable and affordable for that customer.
The collaboration will also better enable lenders to proactively manage financial hardship and provide more personalised support to customers at a critical time of inflationary pressures as Experian’s annual Risk Radar report found 100% of the Australian credit risk experts surveyed believe more customers will experience hardship and defaults in the next 12 months.
General Manager of Experian Digital, Simone Jemmett, said, “Open Data solutions have the capability to solve two of the biggest challenges for Australian lenders: accuracy of data to support responsible lending and streamlining the customer experience to get to a faster decision. For example, lenders can harness insights from Open Data that swiftly and accurately identify income and spending habits, enabling them to make a faster decision on a loan application or offer proactive support, depending on where the borrower is in the loan life cycle.
“The more consumers that opt in to share data through Open Banking, the faster it will deliver the value it has in more mature data markets spurring innovation and greater competition among lenders. The latest figures out of the UK show that 6 million consumers have already benefited from Open Banking. The key being the value consumers see from the various use cases, such as a faster loan decision, or providing the consumer with the means to better understand their financial wellbeing.”
The new collaboration puts both businesses in a strong position as local market adoption increases, with Experian and Envestnet | Yodlee well-placed to capitalise on Open Banking opportunities for their customers, and ultimately the end consumer.
Tim Poskitt, A/NZ Country Manager for Envestnet | Yodlee, said, “We are delighted to be working with Experian in Australia. They are a market leader of innovative decisioning technology, so this is a unique and mutually beneficial opportunity for both organisations.
“Lending is a valuable use case for Open Data with tangible benefits for lenders and borrowers. With Experian coming into the CDR ecosystem, Australian Open Banking is reaching a tipping point and we are ready for adoption to accelerate in 2023.”
