How our Buy Now, Pay Later data-sharing works

BNPL services are the biggest innovation in the UK credit industry for a decade

Sharing of BNPL payment data is now a reality. Subject to the same rules as those lenders who already provide data into UK credit reference agencies, we are at the forefront of setting standards and providing access to this data.

According to a finder.com survey, more than a third of Britons (37%)¹ have already used BNPL as a source of low cost credit. Latest research from Forbes also shows that more than two thirds (70%) of UK shoppers have turned to these services as the cost-of-living has increased.

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Until now, however, the credit reference agencies have not had access to information about consumers’ use of BNPL. Information now being shared is for those products where the repayment period is short, usually 90 days, and where there may be multiple, but relatively low value transactions taking place across several accounts. The data tells us about a consumer’s use of BNPL, their credit commitments and repayment history. This information was previously not shared amongst BNPL providers or with other lenders. So, there was no awareness of the number of BNPL transactions a consumer might have or what this meant for their credit profile

What’s changed?

BNPL providers have now started sharing data on customers’ transactional and payment behaviour with us, shining a light on borrowing that was previously invisible to other lenders.

This data includes searches made by consumers, as well as transactional data providing access to a comprehensive new source of information on the use of BNPL services by UK consumers.

As a result, all UK lenders contributing data to our consumer bureau can now access information about customers’ use of BNPL services. Under the principles of reciprocity, BNPL providers sharing data can now access consumer credit information from other lenders too.

Lenders can make better lending and customer-management decisions, based on a more complete view of credit risk and affordability.

How it works

Updated monthly, our BNPL data includes details of each transaction made by a consumer, their overall balances, payment performance, and other indicators – including the number of accounts a consumer holds, their average balance, current balance, usage, payment arrears and delinquencies.

Lenders can access the raw data, as well as a suite of 72 aggregated and decision-ready BNPL characteristics, allowing them to interrogate the data and build it into their models as appropriate.

Lenders can access this data now to understand how many of their existing customers are using BNPL services, what is the volume and value of their monthly transactions and associated balance on each account. Lenders can then analyse this data in association with a consumer’s other credit commitments and its impact on an individual’s credit worthiness and affordability. The BNPL data can be used to unlock opportunity based on the thickening of credit files alongside previously unseen positive payment performance, whilst the presence of arrears can be used to identify risk.

The data is available through our existing Delphi Select API for incorporating into a credit application decisions, and through an application decision dashboard to monitor applications.

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BNPL payment data is also being incorporated into Delphi for Customer Management (as batch updates) to inform changes in a customer’s credit status and affordability throughout the life of a loan. And it is available to help lenders drive improvements in automating decisions using our PowerCurve decisioning software.

Finally, data is being offered for analysis as part of our suite of cloud-based analytical tools (including AIS and Ascend); here it can inform risk scores and propensity models in order to improve credit-risk analytics.

BNPL data is not, to begin with, being incorporated into our existing Delphi credit score and supporting characteristics until more is understood about its power for understanding a customer’s credit risk and affordability. In the short-term lenders will access BNPL data separately from an individual’s credit score but may use the data in association with the score if they wish.

Innovation in credit data sharing

By sharing data on the use of BNPL services, we have extended its view of the consumption and utilisation of credit by UK consumers, generating valuable new insight to inform decision-making and support better customer outcomes.

We have one of the most complete views of UK consumer borrowing, enabling lenders to obtain the best possible understanding of credit risk and affordability using the data feeds and analytical tools they already use.

This means lenders can start using this new data immediately to improve credit access for those who can afford it, and to provide the visibility lenders need to make the most accurate and informed lending decisions.

How can we help?

BNPL services are the biggest innovation in the UK credit industry for a decade. Sharing of BNPL payment data is now a reality. Subject to the same rules as those lenders who already provide data into UK credit reference agencies, we are at the forefront of setting standards and providing access to this data.

We can now give lenders access to information, which removes uncertainty you might have over the use of these services by your customers. Access provides you the necessary information to better inform your credit risk and affordability decisions, to improve the performance of your credit decisions and allow you to on-board, protect and monitor customers.