What the Report Says — Key Findings
A new white paper from fintech group ClearScore suggests that modernising how creditworthiness is assessed in the UK — especially using open banking and AI technologies — has the potential to add up to about £7 billion per year to the country’s gross domestic product (GDP). (UKTN)
Why?
According to the report:
- Traditional credit models rely on limited data and may exclude millions of creditworthy people from access to loans and other credit products. (UKTN)
- Up to 17 million UK adults could be underserved by current credit systems, representing an estimated £2 billion gap in credit supply if access were improved. (UKTN)
- Using richer financial data from open banking and AI-powered risk assessment, up to 60 % of people currently denied credit could be shown to be creditworthy. (UKTN)
- In areas where open banking credit decisioning is already used, marketplace lending volumes have risen by around 14 %, showing early productivity gains. (UKTN)
What Is Open Banking?
Open banking refers to systems where banks share customer-permissioned financial data (such as transaction histories) with third-party financial service providers. This allows apps and lenders to assess affordability more precisely than with traditional credit bureau data alone. (Experian)
Why This Matters to the UK Economy
Potential GDP Impact
If credit were made more accessible and appropriately priced for a wider segment of consumers and small businesses, the report argues:
- Economic participation would increase, leading to higher consumer spending, investment, and business formation. (UKTN)
- This could add ~£7 billion annually to GDP — a meaningful sum given currently modest GDP growth in the UK economy. (GDP grew only around 0.1 % in late 2025, illustrating sluggish growth overall). (Credit Strategy)
Financial Inclusion Benefits
Better use of technology in credit assessment could particularly help:
- People with thin or non-traditional credit histories
- Freelancers, gig-economy workers and those with fluctuating income
- Small and medium enterprises (SMEs) that struggle with standard credit criteria
By boosting access, households and firms could invest more, borrow responsibly, and contribute more to economic activity and productivity gains.
What Experts and Industry Leaders Are Saying
ClearScore’s View
Tom Markham, Chief Commercial Officer at ClearScore, said the challenge isn’t about lowering lending standards but about raising precision in how credit scores and affordability are calculated. He argues that many people who could repay credit responsibly are currently excluded by “blunt decision-making and outdated data.” (UKTN)
Broader Industry Perspective
Fintech specialists have long suggested that better data and analytics can improve risk assessment and reduce defaults — and recent tools from credit-reporting firms like Experian show how combining multiple data sources (income, spending and repayment patterns) leads to more nuanced credit profiles. (Experian)
Some economists also connect this with wider productivity challenges in the UK economy, where adopting technology more broadly — from open banking to AI-driven financial products — is seen as a way to enhance overall economic performance. (Bank of England)
What Reform Could Look Like
According to the report and related discussions:
- Wider adoption of open banking data in credit decisions, beyond just a few lenders
- AI-powered credit scoring that incorporates real-time financial behaviors
- Regulatory clarity to encourage innovation without weakening consumer protections
- Tools that help lenders understand risk more precisely, rather than rejecting applicants based on limited historic data
This doesn’t mean loosening credit standards — it’s about using better data to say “yes” to credit applicants who are actually lower risk than traditional scores suggest. (UKTN)
Broader Economic Context
The UK economy has struggled with slow growth in recent years, growing only modestly in late 2025 (a quarterly rise of about 0.1 %). Trends like fintech innovation and digital finance adoption are increasingly viewed as potential drivers of productivity and growth. (Credit Strategy)
Tech-driven reform in credit markets sits alongside other digital economy opportunities, where data, AI, and financial innovation could add significantly to long-term economic performance if adopted more widely. (Bank of England)
Bottom Line
- A new industry white paper claims that **modernising credit assessment with tech like open banking and AI could boost UK GDP by up to £7 billion each year. (UKTN)
- The core idea is to expand access to credit responsibly for millions of consumers and businesses by using richer financial data and smarter risk models — not by lowering standards. (UKTN)
- If implemented alongside broader digital finance reforms, this could help address productivity and growth challenges in the UK economy. (Credit Strategy)
Here’s a case-studies-and-comments style breakdown of the new economic report claiming that tech-driven credit reform could add up to £7 billion annually to UK GDP — pulling together real examples, expert remarks, and broader context around the findings. (UKTN)
The Report in Focus
A white paper by UK fintech group ClearScore, produced in collaboration with partners including EY and Fair4All Finance, argues that modernising credit decision-making — specifically through open banking, AI and richer data sets — could unlock up to £7 billion a year in GDP growth. It suggests that outdated credit models and incomplete data are restricting access to credit for millions of people and businesses. (UKTN)
Key thrusts of the report:
- Up to 17 million UK adults currently have unmet credit needs, representing an estimated £2 billion gap in credit supply. (UKTN)
- Replacing “blunt” decision-making with richer data (like open banking transaction histories) could show that up to 60 % of people now denied credit actually are creditworthy. (UKTN)
- Open banking-enabled credit platforms have seen increased lending volumes (around 14 %) where such data is already used. (UKTN)
Case Study 1 — Open Banking in Marketplace Lending
Where open banking is already used to inform credit decisions (particularly in marketplace lending and alternative finance platforms), lenders have seen measurable increases in volume — a 14 % rise in lending activity compared with traditional credit processes. This suggests that richer consumer data can directly translate into more lending without higher arrears. (UKTN)
Comment from the report:
“This challenge is not about lowering standards, it is about raising precision.” — Tom Markham, Chief Commercial Officer at ClearScore. (UKTN)
This underscores that the goal isn’t looser credit but smarter assessment — using up-to-date data and analytics rather than rigid risk profiles that exclude millions of potentially stable borrowers.
Case Study 2 — Expanding Inclusive Credit
The paper highlights borrowers outside “prime” credit categories (e.g., near-prime or thin-file consumers) who are often overlooked by traditional scoring systems. Using tech-driven models based on transaction patterns, income stability, and AI pattern recognition, lenders can make more informed decisions. According to the report:
- Approval rates for near-prime consumers can rise by up to 25 % when open banking data is used. (business-money.com)
Economic insight: Reform here doesn’t just help individuals — it has ripple effects: increased consumer spending, better business investment and improved labour participation — all of which underpin GDP growth.
Expert & Industry Commentary
Fintech Leaders
Tom Markham (ClearScore):
“Millions of consumers who could repay responsibly are being locked out by blunt decision-making and outdated data. With the right tech and regulatory certainty, the UK can become a global leader in inclusive, technology-driven credit.” (UKTN)
Industry voices broadly echo this sentiment — that integrating AI and consented access to richer financial data can reduce risk while broadening access to legitimate credit.
Broader Context — Open Banking & Financial Innovation
The UK has been a pioneer in open banking for almost a decade, and fintech experts argue that widened adoption is critical to realising the potential growth the report outlines. For example:
- Government and fintech leaders have described greater public sector adoption of open banking as an essential ingredient for trust and uptake. (globalgovernmentfinance.com)
- Reports on UK open banking adoption show millions of active users and expanding services including lending, payments and SME finance — laying the groundwork for the sorts of reforms the GDP report advocates. (Open Banking)
These case studies and industry experiences reinforce the idea that technology isn’t just a tool for convenience — it reshapes markets and economic participation.
Key Takeaways
| Aspect | What the Report Shows |
|---|---|
| Economic Potential | Up to £7 bn added to GDP annually if credit access expands responsibly. (business-money.com) |
| Data & Tech Role | AI and open banking data can reveal creditworthiness that legacy models miss. (UKTN) |
| Real-World Signals | Markets using these technologies (e.g., marketplace lenders) already see increases in lending volumes. (UKTN) |
| Policy Angle | Broader adoption requires clear regulatory frameworks that balance innovation with consumer protection. (business-money.com) |
Final Comment
Economists and fintech leaders see this report as both an opportunity and a caution. On one hand, tech-driven credit reform could meaningfully boost growth and inclusion. On the other, data quality, fairness and regulatory safeguards will be essential to ensure that innovation doesn’t inadvertently introduce bias or risk into credit outcomes.