Using open banking and AI technology to reform how credit is accessed by consumers could add as much as £7bn to the UK GDP a year, according to a new white paper.
The report, produced by fintech group ClearScore, claimed that outdated models assessing the affordability of credit fuelled by incomplete data and regulatory risk aversion is preventing lenders from offering effective credit products.
ClearScore said in its white paper that an estimated 17 million UK adults have unmet credit needs, representing a £2bn gap in credit supply.
The report claimed that technology could close this access gap, highlighting the potential role that open banking and AI could play in expanding access to credit without increasing risks.
The company’s data found that up to 60% of consumers currently receiving no credit offers may be creditworthy when assessed using richer data such as open banking transaction information.
It notes that where open banking is already used for credit decisioning, marketplace lending volumes have increased by 14%.
“This challenge is not about lowering standards, it is about raising precision. Millions of consumers who could repay responsibly are being locked out by blunt decision-making and outdated data,” said ClearScore CCO Tom Markham.
“This is a pivotal moment – if we modernise how credit is assessed, we can unlock growth, improve financial inclusion and build a healthier market for everyone.
“Responsible credit is not a social cost – it’s an economic enabler. With the right data, technology and regulatory certainty, the UK can become a global leader in inclusive, technology-driven credit.”
