Tech-Powered Credit Reform Could Add £7bn to the UK’s GDP, Report Claims

Why It Matters

Unlocking hidden credit demand can boost economic growth and financial inclusion, positioning the UK as a leader in tech‑driven lending.

Key Takeaways

• Open‑banking AI could unlock £7bn annual GDP boost
• 17 million adults face £2bn credit supply gap
• 60% of credit‑starved consumers appear creditworthy with richer data
• Marketplace lending rose 14% where open banking is used
• Regulatory certainty needed to scale tech‑driven credit models

Pulse Analysis

The UK’s credit‑assessment framework still relies on static income checks and limited credit histories, leaving a sizable portion of the population excluded from borrowing. Open‑banking APIs now provide real‑time transaction data, while AI models can synthesize this information to gauge repayment capacity more precisely. By shifting from blunt, rule‑based scoring to dynamic, data‑rich evaluations, lenders can reduce default risk while expanding their addressable market.

Economic analysts estimate that closing the £2 bn credit gap could inject roughly £7 bn into GDP each year, a boost comparable to adding a mid‑size manufacturing sector. The white paper cites that 60% of consumers who receive no offers today would qualify under enriched data, and where open‑banking is already integrated, marketplace‑lending volumes have risen 14%. This suggests a direct link between data‑driven underwriting and loan growth, translating into higher consumer spending, business investment, and tax revenues.

Realising this potential hinges on clear regulatory guidance and robust data‑privacy safeguards. Policymakers must balance innovation incentives with consumer protection, establishing standards for AI transparency and consent‑driven data sharing. If the UK can deliver a secure, scalable framework, it could set a global benchmark for inclusive, technology‑enabled credit, attracting fintech investment and reinforcing its position as a financial services hub.

Tech-powered credit reform could add £7bn to the UK’s GDP, report claims

By Oscar Hornstein, Senior Reporter · Wed 18 Feb 2026

A new white paper from ClearScore has urged changes to how credit affordability is assessed.

Using open‑banking and AI technology to reform how credit is accessed by consumers could add as much as £7 bn to the UK GDP a year, according to the paper.

The report, produced by fintech group ClearScore, claims that outdated models assessing the affordability of credit—fuelled by incomplete data and regulatory risk aversion—are preventing lenders from offering effective credit products.

ClearScore says an estimated 17 million UK adults have unmet credit needs, representing a £2 bn gap in credit supply. The paper argues that technology could close this access gap, highlighting the potential role that open banking and AI could play in expanding access to credit without increasing risks.

The company’s data found that up to 60 % of consumers currently receiving no credit offers may be credit‑worthy when assessed using richer data such as open‑banking transaction information. It notes that where open banking is already used for credit decision‑making, marketplace‑lending volumes have increased by 14 %.

“This challenge is not about lowering standards, it is about raising precision. Millions of consumers who could repay responsibly are being locked out by blunt decision‑making and outdated data,” said ClearScore CCO Tom Markham.

“This is a pivotal moment – if we modernise how credit is assessed, we can unlock growth, improve financial inclusion and build a healthier market for everyone.

“Responsible credit is not a social cost – it’s an economic enabler. With the right data, technology and regulatory certainty, the UK can become a global leader in inclusive, technology‑driven credit.”

Topics: ClearScore, Open Banking