Utilities and telecoms are both vital infrastructure sectors facing increasing pressure from rising bill debt (Guardian, March 2026) and challenges with accurately assessing customer financial standing.
As this pressure grows, there is increasing focus on the need for new approaches. Open Banking could help enable quicker, more reliable affordability assessments, particularly for customers at risk of falling behind on payments.
Why traditional affordability checks fall short
Traditional methods for assessing customer affordability can present limitations. Gathering and analysing information often involves manual processes, which can increase time and operational costs.
There’s also the risk that decisions are based on incomplete or outdated information, particularly where self-reported data is used.
Standardised approaches may help reduce complexity, but they do not always reflect individual customer circumstances.
The cost of poor affordability assessments
Ineffective affordability assessments can have the greatest impact on customers who may already be financially vulnerable.
For vulnerable customers, payments need to be carefully managed to avoid escalating debt. If their standing has not been correctly assessed, they may be placed on inappropriate payment plans, which may exacerbate the cycle of financial hardship.
Incorrect bill payment solutions may lead to poor customer outcomes and reputational damage to the service provider.
How Open Banking enables better affordability decisions
Businesses are beginning to turn to Open Banking for affordability solutions.
Using Account Information Services (AIS), organisations can access customer-permissioned data to gain greater visibility of income and expenditure.
This may help reduce the need for manual data collection and support more consistent, informed decision-making.
Better data leads to better outcomes
A clearer view of customer financial circumstances could help utility and telecoms service providers offer more appropriate support.
Options such as flexible payment arrangements may help reduce arrears and support improved financial outcomes for customers.
In turn, this may contribute to stronger customer relationships and increased regulatory confidence.
Payit’s approach to affordability
Payit by NatWest is working with companies in the utilities and telecoms industries to develop AIS-based solutions to help simplify affordability assessments.
Using the power of AIS, businesses may be able to produce detailed reports including digital income verification, credit checks and detailed personalised financial information obtained with explicit customer consent. So, you end up with a clearer picture of customer affordability.
These solutions are supported by the security standards expected of a UK bank. Payit has been designed for regulated sectors, with a focus on compliance and customer protection.
End-to-end encryption is designed to support control, security, and transparency, with data sourced directly from customers’ banks with their consent.
To learn more about how Open Banking could support your approach to affordability, get in touch with us at [email protected].
*You will need to sign up to Payit terms and conditions and you may need to hold an account with us. Your business must be based and trading in the UK with a turnover above £2m. You must be 18 years or older. Fees apply. Speak to a NatWest Relationship Manager (where relevant) for further information, or request a call back.