What is Open finance?
Data
Open finance is the framework that lets a person authorize their financial data, such as account movements or payments, to be shared with another institution. The data travels with explicit consent through standardized channels.
Why it matters
It gives access to real behavioral information rather than declared data: income that actually arrives, recurring expenses, seasonality. For an applicant with no credit history, it is often the best available evidence.
Consent is part of the product: without clear, revocable authorization the data should not be used.
- Evidence of real behavior, with consent.
- Useful where the traditional bureau has no information.
- Requires treating authorization as part of the design.
Common questions
How is it different from alternative data?+
Open finance is a route to financial data with the holder's consent. Alternative data is a broader set that includes non-financial signals such as utility payments or phone line reputation.
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