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When you apply for a Credicorp business loan, we ask you to connect your business bank account via Open Banking. We understand that sharing banking data — even read-only — is a meaningful act of trust. This article explains exactly what Open Banking is, what we see when you connect, what we look for, and how you remain in complete control throughout.
What is Open Banking?
Open Banking is a regulated system that allows businesses and individuals to share their bank account data securely with authorised third parties. It was introduced in the UK following rules set by the Financial Conduct Authority (FCA) and mandated under the Open Banking Implementation Entity (OBIE) framework. Every major UK bank — including Barclays, HSBC, Lloyds, NatWest, Santander, Starling, Monzo and many others — is required by law to support it.
Crucially, Open Banking access is granted and controlled entirely through your own bank's app or website. You choose whether to connect, you see exactly what will be shared before you confirm, and you can revoke access at any moment without contacting us. The FCA's rules mean that the data connection is secure, standardised and auditable — it is not a workaround or a screen-scraping technique.
What we see when you connect your account
When you authorise the Open Banking connection, we receive a read-only view of your business bank account covering approximately the last three to six months of transaction history. That means we can see:
- Credits into the account — payments received, transfers in, refunds
- Debits from the account — supplier payments, wages, rent, tax payments, loan repayments
- Running balance at the time of each transaction
We do not receive your online banking username, your password, your PIN, or any other login credential. Open Banking works through a secure API connection — your bank authenticates you directly, and we never see or store the credentials you use to log in. We see the output of the connection (your transaction data), not the keys to your account.
What we look for
Our underwriting team uses the transaction data to build a picture of your business's financial behaviour over recent months. We are looking at patterns, not individual line items. Specifically, we assess:
- Regular income patterns — whether your business receives payments consistently, and whether those patterns match the trading activity you describe in your application
- Outgoing obligations — existing loan repayments, standing orders and recurring commitments that affect how much you can comfortably borrow
- Balance behaviour — whether your account regularly dips to zero, whether you hold a working buffer, and how your balance moves across a typical month
We do not analyse your personal spending. We do not examine individual transaction descriptions to judge lifestyle choices. The assessment is focused solely on your company's trading and financial position. For a full explanation of how we weigh these signals, see how we lend.
What we cannot do
Open Banking is a read-only permission. Under FCA rules and the technical specifications that govern the connection, there are strict limits on what any authorised third party can do:
- We cannot make payments from your account under any circumstances — the connection carries no payment initiation rights
- We cannot store your login credentials — we never receive them, and we have no mechanism to do so
- We cannot share your transaction data with third parties without your explicit consent — your data is used solely to assess your application and, if you borrow, to service your account
- We cannot retain access indefinitely — the connection is time-limited and subject to the consent terms you accept at the point of connection
How to revoke access
You are in control at every stage. To revoke Open Banking access, log in to your bank's app or website, navigate to the connected apps or third-party permissions section, and remove Credicorp from the list. The moment you do this, the connection is closed and we can no longer retrieve any further data. You do not need to contact us to trigger this — revocation is immediate and handled entirely by your bank.
If you revoke access before your application is complete, we will work with the data we already have where possible, or contact you to discuss alternative ways to evidence your trading position.
How Open Banking makes decisions fairer
Traditional credit scoring relies heavily on credit file history. That works well for established businesses with years of borrowing behind them, but it can disadvantage companies that are newer, have always paid in cash, or have had no reason to borrow before. Open Banking changes that equation.
A business that has never borrowed but has strong, consistent cash flow through its bank account — regular customer payments arriving on time, supplier bills paid promptly, a stable balance — can now demonstrate that trading strength directly, without a long credit history. For many of our applicants, Open Banking data is the clearest and most accurate evidence of affordability available, and it allows us to say yes to businesses that a purely credit-file-based model might decline.
This aligns with our broader approach to responsible lending: we want to understand your business as it actually is, not as a thin proxy built from historical borrowing habits. You can read more about our overall underwriting philosophy at how we lend.
Frequently asked questions
- Does connecting my bank account affect my business or personal credit score?
- No. Open Banking is a data-sharing connection, not a credit search. Authorising the connection does not place a footprint on your business or personal credit file and has no effect on your credit score with any credit reference agency.
- What if I do not want to use Open Banking?
- Open Banking is our preferred method because it gives us the clearest picture of your business quickly and without manual document handling. If you have a specific reason you cannot use it, contact us before applying. We may be able to accept recent bank statements as an alternative, though this may extend the time needed to assess your application. See our FAQs for more on what to expect during the application process.
- Is my data safe?
- Yes. Open Banking connections are governed by FCA regulations and use encrypted APIs provided by your bank. We handle the data we receive in accordance with our privacy notice and UK GDPR obligations. We use your transaction data only to assess your application and, if you borrow, to service your loan. We do not sell your data, and we do not use it for marketing purposes without your separate consent.