The expansion of alternative data credit scoring requires data governance frameworks that give consumers control over their personal information. Organizations manage this data sharing through Open Banking Frameworks.

[User Grants Explicit API Permission]
  |- Connects Utility Bill Account Files ------> Transfers data to competing microfinance apps
  |- Links Mobile Money Payment Ledgers -------> Shares cash flow data to secure low-interest loans

Open banking requires financial institutions to build secure Application Programming Interfaces (APIs). These interfaces allow customers to share their transaction histories with competing financial providers safely, helping them use their own alternative data to secure lower interest rates and access better financial products.