Introduction
Imagine assessing a customer’s creditworthiness based not only on their past but also on their present behavior. PSD2 enables access to live transactional data, allowing lenders to make decisions based on real-time insights rather than outdated snapshots.
How PSD2 Redefines Credit Scoring
- Real-time Insights: Similar to how streaming services personalize recommendations with live data, PSD2 offers lenders dynamic views of customers’ spending and saving habits.
- Precision Decisions: Historical credit scores can miss the nuance of a customer’s financial stability. PSD2 enables smarter risk assessments by looking at income consistency and spending trends.
- Inclusivity: By including non-traditional data, PSD2 brings financially underserved individuals like freelancers and gig workers into the credit ecosystem.
Why It Matters for Businesses
For lenders, PSD2 reduces risk and improves product-market fit. For industries like iGaming, understanding customers’ financial behaviors opens doors to responsible gaming initiatives and tailored payment solutions.
What's next?
As AI and machine learning integrate with PSD2 data, expect even greater precision in credit models, leading to personalized, data-driven offerings.
Ready to modernize your lending processes?
Contact us to implement smarter credit scoring tools powered by PSD2.
