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Web Data Insights: How Banks – and SMEs – Can Get the Most out of PSD2

As PSD2 is creeping ever-closer to its September 2019 ‘live’ date in Europe, it’s time for financial services organisations to take the lead and assume a proactive approach to using all the new, transactional and alternative data that Open Banking will make available. Experian’s Web Data Insights – WDI – is an advanced analytics solution that can be of tremendous benefit to banks and other credit providers in this new, data-rich world.

Experian experience: how financial institutions and SMEs can derive mutual benefit

At the same time PSD2 is offering new opportunities for lenders, it will level the playing field for SMEs, traditionally a challenging segment for financial services.

Download the White Paper ‘Successful routes to servicing the SME sector’

Research from the Experian-commissioned Forrester Report ‘Successful routes to servicing the SME sector’ indicates that 31% of firms don’t know where to fit SMEs in the portfolio; 37% of businesses regard SMEs as a high default risk; while 26% say they are ‘uneasy at the distinct lack of data when it comes to serving this segment.’ The diversity of SME size, characteristics and needs also prove difficult for many financial service firms.

This is where WDI enables financial institutions and the SMEs they work with to quickly, easily understand their ‘affordability’ and risks – and to find the best products and processes for the SME. The assessment can often be made in 3 minutes, when it used to take 3 weeks.  This fits Experian’s brand promise perfectly: ongoing innovation, speed and scale that delivers best results for businesses and their customers.

How does WDI work? Download our Product Sheet ‘Web data insights for SMEs: Optimising non-traditional data to improve credit risk decisioning’

Levelling the field

At Experian we’ve been looking at PSD2 for some time – we are headquartered in London, and PSD2 took effect in the UK in January 2018.

At that time Iain Colbeck, Head of Product Management Experian SME, said: “PSD2/Open Banking is a hugely positive evolution for the customer and will at last provide a level playing field for the backbone of the economy – SMEs. This data will enable better informed decisions to be made by both the SME and those corporate businesses who make decisions about SMEs. Finally, data-driven decisions can be made that will help every SME in the UK protect, manage and grow their business, making them safer, smarter and brighter.”  

The big realisation that we have gotten from our ‘pre-experience’ in the UK and can now scale to the whole of EMEA: that Open Banking opens the potential for greater success for small businesses (helping them appropriately and quickly fulfil their credit needs, for example). At the same time, Experian’s comprehensive end-to-end WDI solution unlocks sharper and more targeted, data-derived insights that enable credit providers to understand and more appropriately serve their SME customers.

Want a more in-depth look at WDI? Visit our product information page or download our Webinar on Demand, ‘Web Data Insight Credit Risk Management for SMEs portfolio’