Open banking facilitates data sharing consented to by customers who generate the data, with the regulatory goal of promoting competition between traditional banks and challenger fintech entrants. We study lending market competition when sharing banks’ customer transaction data enables better borrower screening for fintechs. Open banking promotes competition if it helps level the playing field for all lenders in screening borrowers; however, if it over-empowers fintechs, it can also hinder competition and leave all borrowers worse off. Due to the credit quality inference from borrowers’ sign-up decisions, this remains true even if borrowers have the control of whether to share their banking data. We also study extensions with fintech affinities and data sharing on borrower preferences.

开放银行促进了生成数据的客户同意的数据共享，其监管目标是促进传统银行与挑战者金融科技进入者之间的竞争。当共享银行的客户交易数据可以更好地筛选金融科技借款人时，我们研究了贷款市场竞争。如果开放银行有助于为所有贷方在筛选借款人方面提供公平的竞争环境，那么它会促进竞争；然而，如果它过度赋予金融科技公司权力，它也会阻碍竞争并使所有借款人的处境更糟。由于从借款人的签约决定中推断出信用质量，即使借款人可以控制是否共享其银行数据，这仍然是正确的。我们还研究了与金融科技密切相关的扩展和借款人偏好的数据共享。