In a recent consultation paper, the Financial Conduct Authority (FCA) has encouraged the use of real-time data sharing by participants in the high- cost short-term credit industry (including payday lending). The FCA’s view is that real-time data sharing leads to more accurate assessments of whether individual consumers can afford the loan they are seeking and, therefore, better lending decisions. The FCA has said that it expects to see the “vast-majority” of firms in this market participating in real-time data sharing by November of this year (being 90% of market participants) and the “vast majority” of loans being reported in real time. This will be monitored and if these standards are not met then the FCA will consider introducing specific data-sharing requirements..

Financial Conduct Authority: Proposals for a price cap on high-costshort-term credit, July 2014