Open Banking for People and Planet

On Thursday 20th June NestEgg co-hosts a Finance Innovation Lab community event; Open Banking for People and Planet.  Kicking off at 7pm, the event’s at the Google Start-up Campus.

We’ll look at how Open Banking improves loan decisions and how this can be done at scale. Automated decisions can result in fair outcomes. Decision engines configured correctly promote financial wellbeing.

Bippit and CoGo, our colleagues from this year’s Fellowship, will be showing how Open Banking delivers achievable personal financial plans and gives power to consumers to change business for the better.

Accepting the financially excluded

Loans declined because of credit bureau data can turn into accepts because of Open Banking. As a result, community finance grow their loan books, delivering benefit to their communities. Consequently fewer people use high cost lenders.

£500 borrowed at a credit union rather than a doorstep lender, costs £330 less.  100,000 loans deliver £33m savings. That’s NestEgg’s target for the coming year.

Dated data

Credit bureau data, used in isolation, is counter-productive. Consequently it can increase exclusion.

Open Banking for People and Planet; dated dataBorrowers not being on the electoral roll. Applicants renting their homes. Consumers paying loans back weekly. Residents living in a particular neighbourhood. All reduce credit score. Financially excluded borrowers find themselves in these circumstances.

Rolling voter registration means it’s hard to remain on the electoral roll. Renting is often the only option. A weekly wage could proportionally be higher than someone’s monthly income. A resident might love their neighbourhood, but it’s not their fault that a neighbour doesn’t pay back their loans. (Living in an area where there’s a high level of defaults reduces credit score).

Credit bureau data is historic. Thererfore it can be detrimental. A County Court Judgment from three years ago might lead to an automatic decline, despite other credit accounts being up to date. Besides, the CCJ’s an old issue. A lot changes in 36 months.

Inclusive data

Open Banking provides a real-time picture of a loan applicant’s financial situation.

When considering affordability, there’s collective knowledge that self-completed budgets are a poor proxy for affordability.

NestEgg uses bank transaction data to categorise spend. Financial statements are therefore based on actual spending patterns. Outgoings are compared to averages. Policy rules additionally highlight gambling, debt repayments and bounced payments. Consequently it’s easier to asssess affordability.

Open Banking and credit bureau data combined, improve lenders’ confidence. A broader picture of borrowers’ circumstances becomes visible. Because of this, applicants who are getting back on their feet, despite past difficulties, are no longer turned down. Community finance exists to help these borrowers.


Data scandals are an ever-present threat. Because of this, information must be used securely and fairly. NestEgg follows a set of principles ensuring Open Banking works for the benefit of borrowers.

Risk managing loans from decline to accept is easier. We’ll demonstrate this with real-life case studies. As a result more borrowers become included. Communities therefore retain millions of pounds. Moreover, improved compliance is an outcome of better-informed affordability assessment.

The event, Open Banking for People and Planet, is fully booked. However you can contact us if you are interested in finding out more. If you sign up for updates you’ll  receive feedback from the event.

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Adrian Davies

Adrian is a co-founder at NestEgg. He is an alternative finance and credit union expert. Adrian has 25 years’ experience in the money advice and responsible lending sectors, supporting credit unions with innovative ideas so they can grow and meet member needs.

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