How Open Banking and Data Innovation Are Shaping Smarter Credit Decisions with UC
TL;DR
AI’s role is growing cautiously: UC uses AI for data structuring and insights, but not yet for credit scoring due to regulatory and transparency considerations.
Open banking enhances credit assessments: PSD2 data complements traditional credit data, enabling more accurate lending decisions and reducing risk by up to 30% for some customers.
Partnership with Enable Banking: UC relies on Enable Banking for robust infrastructure and seamless integration, improving processes like income verification for both businesses and consumers.
Guidance for companies: UC educates clients on using the right data for their specific risk scenarios, balancing efficiency, compliance, and accuracy.
Credit information is evolving faster than ever, and UC is at the forefront of this change. We spoke with Petter Alvstén, Head of UC’s consumer information business, about how the company leverages decades of credit data, open banking, and advanced analytics to help financial institutions, businesses, and consumers make smarter, faster, and more accurate credit decisions.
From the rise of digitalisation and AI to the growing importance of consumer control and cross-border credit portability, Petter shares insights on the biggest shifts in credit risk over the past 15 years, the partnership with Enable Banking, and how PSD2 data is transforming lending processes. This Q&A explores how UC balances tradition and innovation, ensures privacy while providing reliable information, and prepares the credit bureau market for the next wave of open finance. Whether you’re a bank, fintech, or SME, this conversation reveals how data-driven insights and ethical practices are shaping the future of credit.
Hi Petter, could you please tell us a little about yourself?
My name is Petter Alvstén, though it depends on where I am, I go by Peter in English and Petri in Finnish. I’m originally from the very south of Sweden, and today I’m responsible for UC’s consumer information business. That’s the part most people associate with UC: credit information and market information.
I’ve always been passionate about savings and personal finance. I started my career at Nordnet, a Nordic savings platform, where I spent about seven years. After that, I wanted to broaden my expertise into credit and lending, so I joined UC. What really drew me here was the opportunity to work with data, scoring, and automation. I’ve now been with UC for almost seven years as well.
Today, I head UC’s consumer information business, which is a substantial part of our parent company Enento Group’s operations. That means I work across both business development and operations, making sure we’re building the right solutions for our customers. I ensure our solutions work seamlessly day to day and ultimately help both UC and our customers succeed.
What I enjoy most about this credit scoring space is that it's a very fast-moving landscape. There are endless opportunities when it comes to data, but also a lot of regulations to navigate. That balance of solving real customer problems in a way that is both innovative and compliant is where the real challenge lies, and it’s what makes the job fun.
Could you tell us a bit about UC and UC's core services?
UC is the leading credit information company in Sweden and part of Enento Group, which operates across Sweden, Finland, Norway, and Denmark. Within that group, UC holds a leading role in Sweden, while our Finnish counterpart, Asiakastieto, has a similar position in Finland.
UC itself has a long history, more than 50 years. We were originally founded by the banks to provide credit information services, and up until 2018, UC was actually owned by the banks. That year, we merged with Asiakastieto to form Enento Group, which is now listed on Nasdaq Helsinki.
Credit has always been at the very heart of UC. For decades, the mission has been clear: build stronger credit scores and deliver better tools for managing risk. In many ways, credit and risk are in our blood.
One of UC’s greatest strengths is the depth of our data. Sweden is unique in that there’s a lot of open public data, and there’s also a strong acceptance for using it responsibly in financial services. Special legislation allows us to source credit data for all individuals without consent, but always within strict regulatory boundaries. That means there must be a legitimate purpose for using the data, and every consumer is notified when their information has been accessed and what was used.
This framework has enabled UC to build exceptionally comprehensive coverage. We’ve created the Swedish credit register. Today, the credit register includes all mortgages, almost every unsecured loan (about 99.9%), and even student loans. If you are going to apply for a loan, having a student loan is really important information because, aside from your mortgage, it’s often the second most important cash flow element. And we’re continuing to expand this register to support even more accurate and reliable credit decisions.
Which kinds of businesses do you typically support?
UC has deep roots in the financial sector, so naturally, we’re very strong with banks and other financial institutions. But our services extend well beyond that. We also support small and mid-sized enterprises, particularly when it comes to trade financing and managing counterparty risk.
On the consumer side, we have a broad range of offerings as well. For example, Allabolag, one of Sweden’s most visited sites for company information, helps people and businesses access key corporate data. We also provide services for individual consumers, including credit score monitoring, ID protection to prevent fraud, and certain insurance-related offerings.
This breadth allows us to support a diverse set of customers, from large financial institutions to SMEs and everyday consumers, helping them make smarter, safer financial decisions.
What role does UC play in helping customers make faster and more accurate credit decisions?
At UC, we’re constantly working to improve the accuracy of our credit scoring models. One important part of that is developing different types of scores for different use cases. For example, if someone is buying a pair of socks through a “buy now, pay later” service, the key question isn’t whether they’ll have a payment remark in a year, it’s whether they’ll pay within 30 days. Those kinds of short-term, behaviour-based insights require different data sets and scoring models than traditional banking.
That’s why UC has evolved and adapted to a new type of financial behaviour beyond conventional credit scoring for banks. Today, we support a wide range of industries, including utilities, telecom providers, and BNPL companies, each with its own needs and risk profiles.
We’ve also seen how strong Sweden’s credit ecosystem really is. Many people don’t realise it, but Swedish banks have had the lowest non-performing loan levels in Europe for nearly two decades. That’s a testament to both the quality of the data available and the robust processes that financial institutions have built on top of it, areas where UC plays a key supporting role.
So we've also adapted to our new type of financial behaviour. Looking at the banking sector, a lot of people don't know it, but Swedish banks actually have the lowest non-performing loans across Europe and have had it for roughly 20 years. So we have really good information, and we also have really good processes at the banks. So the lowest credit losses across Europe.
What do you see as the biggest shift in the credit risk industry over the last 15 years?
Without a doubt, the biggest change has been digitalisation. Fifteen years ago, most credit assessments were handled in person at a bank branch, often with a banker sitting in front of a computer.
Today, everything is digital, and most interactions happen through a phone. That’s a huge step for automation. This shift has brought a huge degree of automation and speed to the process, both for financial institutions and consumers.
That expectation of speed has transformed the industry. People want instant decisions, instant access, and instant services. And while that creates incredible efficiency, it also brings new challenges, especially around fraud and data accuracy.
So, the main shift has been digitalisation, but equally important is how both consumers and institutions have come to expect and trust that everything happens in real time. It’s a new mindset as much as it is a new technology.
How has the rise of AI impacted the risk of fraud in credit assessment?
So there is a challenge, of course, because with more data and automated processes, there’s naturally an increased risk of fraud. At UC, we’ve built systems that assess two very different scenarios: the risk that an individual cannot pay, and the risk that an individual chooses not to pay.
These require completely different approaches. Over the years, we’ve become really strong at evaluating an individual's ability to pay. Now, we are strengthening our ability to assess whether they will pay. It's a new type of service element that we have been working with for some time, and we're starting to see some good traction.
AI and automation help us process huge amounts of information quickly, but they also depend on the accuracy of the underlying data. What happens if someone manipulates data from authorities? How do we detect it, flag it, and make sure decisions are based on correct information?
Could banks make bad decisions because public data is wrong?
Absolutely, and I have a really absurd example. If someone tells the tax authority they earned a million kronor last year, that figure can go into public records without immediate verification. The tax authorities will not question the person; they will just put in that this person made a million crowns last year. If that incorrect number then feeds into credit data, it can skew decisions downstream.
Now that information might end up in that person's credit information. Essentially, you can manipulate your own data. That’s why UC doesn’t just ingest public data and assume it’s correct. We are aware of these kinds of cases, and we have multiple checks and validation layers to make sure the data is accurate. The goal is simple: prevent banks and lenders from making decisions based on bad inputs. It’s easier than many people think to alter parts of your official record, so those safeguards are a crucial part of keeping the credit ecosystem reliable.
How do regulatory changes shape the way UC is delivering its services?
Handling the largest private consumer information database in Sweden comes with big responsibilities. GDPR has had a major impact on us to provide a trustworthy and compliant service. In addition, the British Data Protection Authority acts as our main supervisor, so we operate under strict regulatory oversight.
When developing new products, we don’t just ask, “What problem can we solve?”, we also ask, “How are we allowed to solve this problem?” Ensuring compliance while delivering actionable insights is at the heart of how we help both businesses and consumers make smarter, more informed credit decisions.
What is the biggest misconception people have about UC?
One common misconception is that credit checks are dangerous. In reality, they’re not dangerous. Of course, there are rules, for example, to monitor if someone is shopping around for mortgages. Yet, a regular online purchase won’t significantly impact your credit score. That said, credit checks should still have a purpose; they’re not something to be done for fun.
Another misconception is that many people in Sweden see UC as an authority. While we are trusted and widely used, we’re a service provider, not a governing body, and our goal is to help both individuals and businesses make informed financial decisions.
How does UC support both customers and businesses in making well-informed credit decisions?
We provide educational services for individuals. Designed to help people monitor their credit score and understand how to improve it. But our support goes beyond consumers, we also work closely with banks, international institutions, and other companies, giving them access to reliable data to make well-informed credit decisions.
We guide our clients on what data to use, which type of scoring fits their specific use case, and how to manage the entire customer lifecycle and risk process. This combination of data, expertise, and guidance helps ensure decisions are accurate, efficient, and tailored to each situation.
What sets you apart from your competitors, especially in the Nordics?
We are the leading credit information company in Sweden, and our strength comes from extensive data coverage. We’ve built the Swedish credit register over the past 30 years, which gives us a unique view of mortgages, loans, and other credit activity. This depth of data, combined with insights into how credit checks are being used across different companies, allows us to build highly accurate credit models.
Beyond data, we are strong on regulatory expertise. We don’t just focus on current rules; we look ahead to the next two to three years, considering how changes might impact our customers and what adjustments or communications might be needed for decision-makers and authorities. This combination of data, insight, and foresight really sets us apart in the Nordic market.
How does UC make sure it provides thorough credit information while keeping data accurate and respecting privacy?
We operate under strict Swedish laws and hold a licence from the Swedish Data Protection Authorities. This licence defines what data we can handle, for how long, for what purposes, and how it can be shared.
We also have a robust governance structure to ensure our data systems are secure and compliant. Beyond regulations, we source data from public authorities and financial institutions and have multiple safeguards in place to detect and correct errors. This combination of strong oversight, regulatory compliance, and data validation ensures that our credit information is both accurate and trustworthy, while respecting individuals’ privacy.
Is there an upcoming regulation that will have a major impact on the industry?
So, there’s the implementation of the new Consumer Credit Directive in Sweden. It will bring significant changes. It will, for instance, affect loan brokers and other companies that previously operated without a licence from the Swedish Financial Supervisory Authority. Under the new rules, these companies will now need a licence to offer financing for goods or services.
At UC, we’re closely monitoring the development of this directive. Although the final legislation hasn’t been published yet, we’re already reviewing our services to ensure that we can fully support both regulatory compliance and customer needs once it comes into force.
How is UC using — or not using — AI?
AI is both a risk and an opportunity for companies like us. With the amount of data we handle, AI has the potential to unlock more and better insights and make processes more efficient. However, we also operate in a highly regulated, risk-averse financial sector. We need to ensure that we have the regulations in place and that we are confident that what we're doing is allowed. Essentially, we need to be absolutely certain that everything we do is compliant and transparent.
We’ve established AI labs internally to explore new concepts and stay in close dialogue with regulators and decision makers on how AI can be safely and responsibly applied.
That said, we’re not using AI for credit decisions or credit scoring, at least not yet. There are still regulatory challenges to address, such as how to ensure that we don't discriminate. Or, how do we ensure that we have full transparency in the models? There is still a way to go before AI is being utilised for credit decisions, especially on the consumer side.
On the other hand, AI and machine learning are proving incredibly valuable for data structuring, turning vast, complex datasets into clean, usable information that enables better insights, even without AI-driven scoring.
How do you balance tradition and innovation at UC?
At UC, we value tradition, but we also explore innovation. What makes us unique is that we combine our legacy of conventional credit data with new data sources, such as open banking.
Each dataset is valuable on its own, but the real power comes from combining them. Standalone, our credit register is great. Standalone open banking data is great. But combining them and also teaching our customers how to combine them effectively, that's where you can bring the most value. Many companies don’t have access to the depth of conventional data that we do, so this combination allows us to deliver insights and value that others simply can’t match.
How did your partnership with Enable Banking come about?
When I started at UC around seven years ago, we were already looking closely at PSD2. What will this mean for our business? How should we embrace it? Back in 2017–2018, after merging with Asiakastieto to form Enento Group, we built a lot of solutions ourselves. Over time, we realised that while we excel at combining datasets and generating insights, technical integrations weren’t our strongest suit.
That’s where Enable Banking came in. We rely on their expertise to provide robust infrastructure and high-quality service, ensuring good uptime, performance, and seamless integration. This allows us to focus on what we do best: leveraging data to create actionable insights, while Enable Banking handles the technical side.
Why use open banking?
Open Banking adds an extra layer of data that helps us make more accurate decisions and streamline processes. We use it for a range of use cases. Some of them are quite basic, like account verification or income verification.
Then there are the more advanced ones, where we facilitate open banking services on behalf of our customers. For example, our customers often ask us to categorise transaction data or use it in an ability-to-pay calculation.
One of the most common applications is income verification. Previously, this was done manually using data from the tax authorities alongside information provided by the applicant in a credit application. The challenge often lies in verifying any gaps between what the applicant states and what’s reported by the authorities. In the past, this meant relying on payslips, which is a process that is error-prone, costly, and time-consuming, with a higher risk of fraud.
With Open Banking, this verification becomes structured and automated, providing higher accuracy while also making the process faster and more reliable for both businesses and consumers.
How is open banking helping UC improve its credit information services?
Our services are built around our customers; we always ask ourselves: how can we help them improve their processes? Open Banking enables us to enhance and expand the value we deliver by providing richer, more flexible data.
Our customers are all different, with their own needs, preferences, and approaches to risk management. That’s why we use Open Banking to support everything from traditional credit assessments to more niche use cases.
For example, a financial institution might use Open Banking data to refine its risk models, while another company could use it for customer insights that aren’t strictly financial. Imagine a streaming service wanting to understand what other subscriptions a user might have. Open Banking data can help uncover those behavioural patterns.
We’re also exploring personal finance management (PFM) solutions. We already provide tools that help consumers monitor their credit information, and we’re expanding this with housing valuations to give users a clearer picture of their assets. The next step is incorporating transaction accounts, so users can understand their spending habits, and, eventually, even their savings and retirement outlook.
By combining these elements, Open Banking enables us to build a true 360° view of an individual’s financial life, supporting both smarter decisions for businesses and greater financial awareness for consumers.
Can you share an example of how Enable Banking has simplified or improved processes at UC?
One of the clearest examples is income verification. A process that every financial institution needs to handle, and one that traditionally involves a lot of manual work and risk.
Before Open Banking, verifying income could be a slow and error-prone task, often requiring pay slips, phone calls, or statements from employers. It was not only costly for banks but also frustrating for consumers who just want quick, simple application processes.
With Enable Banking, we have been able to automate and optimise this process with exceptional precision. By securely connecting to data from tax authorities, individuals, and transaction accounts. We can now verify income faster, more accurately, and with far less effort, reducing friction for both lenders and borrowers.
It’s a great example of how Open Banking doesn’t just improve operational efficiency; it also creates a smoother, more transparent experience for consumers.
How can open banking help improve access to financial services for people who don’t have a regular salary or a traditional credit history?
One of the biggest benefits of Open Banking is what we call the “thin credit file.” For individuals who don’t have recurring income or a traditional credit history, there is no stable pattern to assess their creditworthiness. Open Banking allows lenders to complement traditional credit data with transactional insights, giving a much clearer picture of an individual’s ability to pay.
This approach benefits both the financial institutions and the individuals themselves. It enables more people to access credit or other financial services that might have been unavailable to them under conventional assessment methods.
At the same time, it’s crucial to handle this data responsibly and ethically. The goal is to drive inclusion, not exclusion. UC, Enable Banking, and other companies in the industry have a responsibility to educate financial institutions on how to use Open Banking data in a way that is fair, transparent, and inclusive.
What is the best part of working with Enable Banking?
The best part of working with Enable Banking really comes down to two things. First, their service mindset. Whenever we need support, their team is always quick to respond and goes above and beyond to help us. That level of care has been noticed not just by me, but by my colleagues as well; we’re all genuinely happy with the collaboration.
The second thing is their business perspective. Enable Banking has a great understanding of what’s happening in the market and what’s coming next. They actively help us identify new opportunities and work with us to bring solutions to life.
How does PSD2 data help UC’s customers?
Since we work closely with the financial industry, we’ve seen firsthand how valuable open banking data can be. One of our customers has been using it for several years now, combining conventional credit data with PSD2 data. The results are impressive; they’ve managed to reduce their credit risk by up to 30%.
We’ve tracked this development over time and noticed something interesting: using only our traditional data would have meant declining more customers, while relying solely on open banking data would have increased credit losses. But when the two are combined, the outcome is a stronger, more accurate credit assessment.
This means our customers can either approve more applicants with confidence or maintain the same lending volume while taking on significantly lower risk.
How is the UC x Enable Banking partnership evolving?
We’re really happy with our partnership with Enable Banking, but the world is constantly changing. More and more information is becoming available, and individuals are gaining greater control over their own data.
Looking ahead, we see Enable Banking as a key partner in navigating these developments. Together, we can explore new use cases in open finance and continue helping our customers make smarter, more informed decisions.
How do you see financial services evolving in the next five years?
Every day, more data becomes available, and navigating this landscape will be key. The challenge for the industry will be deciding which new data sources to work with and how to use them effectively. We already have a solid foundation: structured systems, strong legislation, and high awareness. But the next evolution will come from embracing new types of data access while maintaining accuracy, compliance, and trust.
My big prediction is that consumers will take centre stage. They’ll have more control over who can access their data and for what purpose. They’ll also be more conscious about how their data is used. While their willingness to share data may increase, it will only happen if there’s a clear benefit, whether that’s convenience, better insurance terms, or improved financing conditions. Ultimately, putting consumers in control will define the next wave of financial services innovation.
What is the most common mistake that you see companies making with credit information?
One of the biggest mistakes companies make with financial information is asking for the wrong data, or too much data, for the problem they’re trying to solve. Many customers request a lot of information, but it’s not always the information that matters for their specific use case.
The key is having the right data to solve the right problem. This isn’t just about efficiency; there are regulatory considerations as well. At UC, we continuously guide our clients on how much data they really need for processes like an ability-to-pay calculation. While the Swedish financial supervisors make the final decisions, we provide guidance to help companies use credit information both effectively and responsibly.
How would you like the credit bureau market to look in five years?
I’d like to see the market become much more cross-border and open, and I believe open banking and open finance can play a big role in making that happen.
For instance, if a credit information company wants to enter a market like Iceland, it currently needs to source local information and navigate Icelandic transaction accounts. A more open, cross-border approach would lower the barriers to expanding into new markets.
It would also help individuals who move between countries. Imagine being able to carry your credit history from Sweden to Iceland or Scotland, and use it to buy a house or get a credit card. That kind of portability would make a real difference for people and businesses alike.
How can the average consumer improve their credit score?
We already provide some general tips and guidance on how to think about your credit score and ways to improve it. While these are fairly generic, we’re always looking for ways to make them more personalised, so individuals can understand how to improve their creditworthiness in their specific situation.
Open banking offers a lot of opportunities here. Giving individuals more insight into their spending habits and financial behaviour can help them see exactly what changes they might need to make to strengthen their credit profile.
How can companies interested in using UC services get in touch?
Companies can reach out through the contact forms on our website, connect with us on LinkedIn, or visit us in person at our office in the Stockholm Waterfront Building. We’re always happy to discuss how UC can support your business.
UC is transforming credit decisions with smarter, faster, and more accurate insights. By combining decades of trusted credit data with the power of open banking, they help financial institutions, fintechs, and SMEs assess risk more effectively and make better lending decisions.
Through our partnership with UC, Enable Banking provides secure, PSD2-compliant access to real-time transaction data. This integration enables UC to automate processes like income verification, reduce credit risk, and deliver a smoother, more inclusive experience for both lenders and consumers.
If you’re ready to enhance your credit decisioning with open banking, we’re here to help.