PwC is working with fintechs to build a digital banking ecosystem which will be available to banks and other lenders.
The accountancy giant has brought together a number of cloud-based platforms using SaaS APIs, to create a new digital banking model. PwC said this will enable banks to reach more customers while reducing costs as they do not have to develop the technology themselves.
The project aims to demonstrate the ease of shifting a legacy bank model to a partnership banking model.
PwC on Thursday announced that Credit Kudos is one of the key fintechs working on the platform. Credit Kudos is a challenger credit bureau that offers an alternative way to measure creditworthiness using open banking data instead of historical borrowing information.
“PwC’s digital banking ecosystem is an important milestone in the banking sector as the power of open banking data gains momentum, and we’re excited to be a part of this journey,” said Freddy Kelly, co-founder and chief executive of Credit Kudos.
“Our API provides financial institutions with valuable insights and personal data not available through traditional credit bureaus and will allow them to re-evaluate their decisions to create new customer offerings and additional revenue streams.
“In turn, this benefits borrowers by providing them with a quick and hassle-free way to apply for credit, getting a response in near real-time.
“This is the start of an important and positive change to the financial sector, showing how financial institutions can evolve quickly and effectively through partnerships.”
Analysis from PwC suggests technological step changes in the banking sector could bring a boost of more than £34.6bn to the UK’s economy by 2030.
“The third wave of digitisation is emerging where open APIs and open platform banking are rapidly changing the shape of financial services,” said Mike Kennelly, director, financial services technology consulting from PwC.
“Legacy banks need to move towards ecosystem banking where they can leverage third parties to extend their customer reach and implement a new disruptive business model.
“We have shown how this can be done with relative ease by building our own digital ecosystem bank and by linking to some of the most disruptive, innovative APIs available – such as Credit Kudos.
“Existing financial institutions and banks need to adopt this new and different mindset – thinking of their competitors as potential collaborators in an environment where consumer multi-banking is becoming the norm.”