The collaboration, announced Wednesday (Sept. 4), is designed to help lenders employ cash flow and income analytics for better credit decisioning via Akoya’s bank data connectivity and Nova’s analytics and consumer reporting agency expertise.
“With increased access to trusted data and insights, lenders will be able to more effectively approve new customers, offer new products, and create greater consumer loyalty, all without increasing their risk appetite,” the companies said in a news release.
Misha Esipov, co-founder and CEO of Nova Credit, noted that the partnership will help drive financial inclusion and improved risk management in an era where “murky” credit data has made it harder for people to get loans.
“As the industry embraces open banking, we look forward to deepening our relationship with Akoya to deliver the industry’s leading cash flow solution-boosting coverage, improving uptime, and meeting the banks’ analytics and compliance needs,” Esipov said.
It’s not just the credit industry embracing open banking. As PYMNTS wrote in late July, 46% of consumers have shown strong interest in open banking, even if just 11% of American adults have used open banking payments in the last year.
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“To unlock this potential, providers must address key barriers such as security concerns, enhance awareness and implement compelling incentives,” that report said.
Research by PYMNTS Intelligence shows an enthusiasm gap among age groups when it comes to open banking, with 72% of Generation Z and 66% of millennials eager to use open banking payments, significantly outpacing older generations, compared to just 42% of Generation X and 22% of baby boomers.
“This generational disparity suggests that open banking providers should focus their marketing efforts on younger demographics, who are more inclined to integrate this payment method into their routine transactions,” PYMNTS wrote.
In addition, high-income consumers were more likely to adopt open banking payments, with 50% of those making more than $100,000 per year expressing interest, compared to 42% among those with lower incomes.
The report found 56% of non-users cite trust issues as a significant barrier, while 44% said they were not familiar with the concept of open banking payments. Security concerns are especially prevalent among older consumers, with 64% of baby boomers and seniors highlighting this issue, versus 44% of Gen Z and millennials.
“To address these barriers, open banking providers must focus on enhancing security measures, improving transparency and increasing consumer education,” PYMNTS wrote. “Partnering with established financial institutions could also help build trust and credibility.”
