Article

How lenders are getting a clearer view of SMEs

12 June 2026

Using real-time data to inform more confident credit decisions 

At Open Banking Limited (OBL), we’re seeing how access to customer- consented, transactional level data is starting to change how SME lending decisions are made in practice. This article looks at where this is already happening and how common standards can support wider adoption across the UK lending market. Recent independent economic analysis1 by EY, commissioned by Open Banking Limited (OBL), gives a sense of how SMEs are already benefiting in practice. 

Three signs of scale and impact in SME lending 

  • Open Banking now supports over 18 million active user connections across consumers and SMEs.2 While much of this sit on the consumer side today, SME use is growing steadily, particularly in accounting, lending and cash flow management.  
  • SMEs are already saving time through automated accounting. EY estimates Open Banking delivers around £1.6 billion in annual benefit to UK SMEs, including £1.4 billion from automated accounting and a further £171 million linked to its use in lending decisions. 3
  • EY modelling also identifies that SMEs may also benefit up to £570 million per year in additional economic opportunity linked to more effective use of real-time data in lending decisions. 

A clearer view of cash flow, with the customer in control 

With customer consent, Open Banking can provide lenders with access to transaction-level bank data showing how a business is operating day-to-day.  

This gives lenders a more current and verified view of cash flow, reducing reliance on historic accounts or manually supplied documents, where data is available and relevant. It can also streamline fact-finding and cut down repeat requests for the same information. 


What lenders can see in practice 

  • Cash flow patterns 
    How money moves in and out over time, including signals of incoming revenue 
  • Regular outgoings 
    Recurring costs such as payroll, tax and supplier payments that shape day-to-day cashflow 
  • Seasonality 
    Trading cycles that explain why performance rises and falls at different points in the year. 

EY analysis commissioned by OBL, set out in ‘Unlocking the Everyday: The Value, Growth and Opportunity of Open Banking in the UK’, notes that firms are already using Open Banking data to support credit affordability assessments, providing additional context when making lending decisions. 

“Firms are already using Open Banking data to support credit affordability assessments, increasing access and affordability of credit.” 4 

Where consented data can strengthen the SME lending journey 

Open Banking can support key points in the lending journey, especially where timing and data quality really matter. The examples below show where Open Banking data can add value in practice.  

Step-by-step through the lending process 

Eligibility and pre‑application checks 

Before an application is submitted, Open Banking data can be used to assess a customer’s financial position using up-to-date information rather than historic snapshots. This allows lenders, brokers, or third-party providers to identify early whether a business is likely to meet lending criteria, helping avoid applications that are unlikely to proceed.  

This data helps establish a more current view of trading patterns, supporting early analysis of affordability and risk and helping limit unnecessary applications that aren’t well-matched to a lender’s criteria. 

For example, a lender may see that income is consistent but arrives later than expected each month, which could prompt an early conversation rather than a declined application further down the line. 

Application and evidence gathering 

Open Banking can reduce the time spent collecting and submitting financial information such as bank statements and transaction histories. 

With the customer’s permission, this data can be shared directly via a secure connection, reducing duplication and administrative effort. This means businesses may no longer need to upload multiple months of statements as part of the application process. 

Underwriting and decision support 

Lenders can assess a customer’s affordability alongside risk.  Transaction-level data provides additional, current signals alongside accounts, and potentially other information such as financial management information.   

For example, transaction data might highlight a growing reliance on one or two customers, or more variable cash flow than the latest accounts suggest, both of which could prompt follow-up questions during the assessment process. 

In these situations, lenders have a more current view to work from, rather than relying solely on historic reporting.  

In summary

Open Banking does not change credit policy overnight. What it changes is the quality and timeliness of the data lenders can use when applying it.  

For SME lenders, this translates into fewer gaps in information, more informed conversations with borrowers and better alignment between lending decisions and how a business is actually performing day-to-day.  

The new independent economic analysis by EY, commissioned by OBL and referenced above, explores how this shift is already starting to play out across the UK.  

Explore the analysis

If you haven’t yet downloaded the report, you can access it here

Download the analysis
Tags