Unlocking financial inclusion: Why alternative and permissioned data matters more than ever  

Credit Awareness Week’s launch last week offers an important moment for the industry to pause and reflect on the role we all play in improving financial outcomes for people. With more than 20 million people in the UK now living in financially vulnerable circumstances, the need for clear, effective financial support has never been more important. 

As we consider how to deliver that support, it’s clear that traditional credit data remains fundamental. It underpins trust, responsible lending, and robust risk decisions. But the way people live, work, and manage their money has changed. As a result, new types of data are emerging that can complement traditional credit information and leave valuable signals about income patterns, spending behaviours, and overall financial resilience. 

This creates a powerful opportunity for lenders as it gives the ability to form a broader and more dynamic view of every customer. With that deeper understanding, lenders can make decisions that are more accurate, more inclusive, and more responsive to people’s real financial circumstances. 

And this is exactly where alternative data and permissioned data are beginning to make a meaningful impact. 

Building a more complete picture 

Alternative and permissioned data play a crucial role for many people who may be new to the UK, early in their financial journey or simply choosing not to borrow. These individuals often appear “thin‑file” or “credit invisible”, even though that doesn’t reflect their ability to manage money. 

By bringing alternative data into the picture, including rent, utility bills and subscription payment, lenders can recognise the everyday behaviours that show financial reliability. 

Open Banking takes this one step further. With an individual’s permission, it provides a real‑time picture of income flows, spending patterns and committed outgoings. This shift then creates a current, accurate understanding of how someone actually manages their money day to day. 

When you combine both, these data sources fundamentally shift the conversation from “What credit have you used before?” to “How do you manage your financial life today?” 

Improving access to a wider range of products 

This broader view doesn’t only support access to mainstream credit. It can open pathways to a range of essential financial products from first‑time credit cards and car finance to rental agreements and subscription‑based services that depend on a clear picture of reliability. 

It also supports people who need help managing existing commitments. Access to tools like debt consolidation relies on confident, up‑to‑date affordability assessments. Permissioned data makes that assessment faster and more precise, reducing friction for people who may already be under strain. 

What we must not forget is that a major advantage of permissioned data is that control sits firmly with the individual: they choose what to share, when and with whom. That transparency ultimately builds trust and reinforces fairness, and these principles matter to lenders, partners, advisers, and policymakers alike. 

2026 is shaping up to be a defining period  

This year is an important one. It brings several important shifts that will shape how alternative and permissioned data is used across the financial system. 

Regulatory frameworks for Open Banking and permissioned data are coming into play, providing clearer long‑term foundations for how data is accessed, governed, and secured. Open Banking itself is also evolving into Open Finance, extending beyond payments into areas such as savings, investments, and pensions.  

Importantly we’re seeing a cultural shift too. Younger generations, particularly Gen Z and Millennials, understand that sharing information is a way to build and improve their financial profile, and it gives them access to better and broader offers. 

What this means is that 2026 isn’t just another year of progress. It’s a defining moment in how permissioned data will support inclusion, strengthen decisions, and reshape customer journeys across financial services. 

Unlocking the Next Wave of Responsible Innovation 

It’s clear the industry is entering a phase where the breadth of data matters just as much as depth. Broader datasets will create a more accurate foundation for pricing, inclusion, affordability, and resilience. 

What that means is organisations that embrace a wider range of data inputs will be better positioned to strengthen risk frameworks, support consumers more comprehensively and deliver the seamless, personalised experiences people have come to expect. And as the industry moves through this transition, collaboration between lenders, fintechs and data providers will be key to unlocking the full potential of permissioned data.

Join us for Credit Week 2026!