Would you let a lender peek into your bank account? Soon, some might ask: So-called “open banking,” as Michael Waters reports for Vox, is starting to become more common.
In theory, “open banking” gives lenders a fuller look at your finances than a credit score alone, and it might make it easier for you to get that loan. But, as Michael explains, there are downsides, too — not the least the prospect of having a creditor scrutinize your spending in fine detail. And while “open banking” is on the rise, the industry is barely regulated.
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—Angela Chen, senior politics, policy, and ideas editor
