With the growing e-commerce and streaming of everything from the music to films and even online subscriptions of multiple services have become very popular. A research by Barclaycard, Britain has become the nation which has the maximum subscribers contributing over £550 in a year on the new and upcoming digital services while signing up to an average of seven to eight subscribes per roof. It is however interesting to see that the numbers are actually expected to be the same and there is no doubt that the citizens are spending most of their time online now. The pandemic has nothing but served us to accelerate the digital disruption that now seen across all sectors in the recent times.
But what is less expected was, the impact of this personality change having a provision of the financial services. It is providing us with a large opportunity to utilize the financial information created through this payment done by subscribers and many other digital services to help the lenders to analyze the affordability in a broader range and in an intuitive way like the one appropriate for the digital era. By constructing the financial track records with these new sources of information, investors are able to understand credit risk in such a way that it fits the purpose in a rapidly changing market. For an individual, this has the probability to help them access much better deals on credit, even when there is an absence of outdated information to make their credit history stronger. As the above mentioned things provide a strong case for a greater data sharing opportunities between consumers and financial services institutions, there are however several ingrained hurdles to pass. Like customers only share data if they thoroughly understand the terms of the exchange and position it in a high value for the product or the service they receive in return. This given value must compensate any risk it perceives in sharing. This sensitive balance is known as the constant equation. While sharing this statistics on their subscription expenses could present real price for the consumers enabling them to access more affordable credit and therefor these benefits need to be conveyed clearly. Institutions also need to consider the journey consumers must finish to stake their information and if the process becomes too lengthy then consumers will drop out in the midway itself. User involvement can be another substantial barrier to data sharing. While substantial, these encounters are not impossible and the prospective remunerations to consumers and lenders, make overwhelming them will be well worth the effort. Lead development in this area with the launch of Experian Boost, free service uses Open Banking technology to permit customers to feature information on steady payments, such as their council tax or Spotify subscriptions, into their credit scores. New data bases formed through digital subscription services, and the ones available through Open Banking data allocation, can be coupled to help advance enhanced credit options for customers. Experian Boost is the evidence for this. The next step of this voyage is aiding more people to supplement their own customer subsidized data straight to their credit files and advance their credit scores. By implementing the usage of these new and applicable sources of information, made potential through the propagation of digital services, investors will be in the superlative potential position to acclimatize to the varying consumer landscape and go faster down the road to recovery.
