Affordability solutions that are leading the way in lending

2 min read|Published September 07, 2022
Blog cover

By utilising consumer data, open banking is revolutionising every corner of the financial world. It’s given way to all sorts of new products and services that are making banking simpler, faster, and safer.

TL;DR – Quick summary
  • Open banking technology is revolutionising the world of finance, and now lenders can enjoy the benefits it brings. 

  • Affordability assessments are becoming more and more important for lenders, given the macroeconomic situation throughout Europe. 

  • Download our ultimate solutions guide to see how open banking can help you in your loan origination process.

TL;DR – Quick summary
  • Open banking technology is revolutionising the world of finance, and now lenders can enjoy the benefits it brings. 

  • Affordability assessments are becoming more and more important for lenders, given the macroeconomic situation throughout Europe. 

  • Download our ultimate solutions guide to see how open banking can help you in your loan origination process.

One particular area of the financial landscape that is benefiting both consumers and lenders alike is consumer lending. Through different products and services, open banking is giving lenders the tools they need to assess their consumer’s data. It’s also giving underserved consumers, especially those with non-traditional circumstances, such as freelancers, expats and younger consumers the ability to be assessed for creditworthiness more accurately. As well as all of the benefits of open banking, there are also new regulatory requirements for loan origination from the European Banking Association, meaning a lot of lenders in Europe are looking for ways to comply with both the EBA and local authorities.  

Affordability checks, minus the fuss

Traditionally, affordability checks have been time-consuming and painstaking for lenders. They involve a lot of work but still often leave out a lot of key information when it comes to assessing creditworthiness. Which in turn can be unfair to the consumer. Open banking is bridging the gap and harnessing the power of consumer data to give a clearer picture of each individual consumer’s financial situation.

With Income Check and Expense Check, Tink makes it possible to understand and validate a consumer’s affordability, when it comes to both their incomings and outgoings.

One guide – many solutions

With so many possibilities for open banking, it can feel a little bit overwhelming to figure out how it can help lenders. Take a look through our ultimate guide to open banking solutions to get a full picture of all the solutions we can offer to help lenders streamline loan application processes.

More in Open banking

How telco and utility companies are using open banking to navigate economic uncertainty
2022-10-06 · 5 min read
How telco and utility companies are using open banking to navigate economic uncertainty

Open banking is helping Telco and utility companies navigate these uncertain times by focusing on quicker onboarding, faster payments and better affordability checks. Learn how open banking can help you.

Open banking
The key to unlocking fairer and more responsible lending
2022-09-29 · 5 min read
The key to unlocking fairer and more responsible lending

In our latest report, we explore how open banking can pave the way for faster, safer, and more responsible lending practices – and what lenders can do to prepare for this new era of credit. 

Open banking
The truth about Variable Recurring Payments: current status, use cases, and future prospects
2022-09-22 · 10 min read
The truth about Variable Recurring Payments: current status, use cases, and future prospects

Many claim Variable Recurring Payments (VRPs) are changing the payments landscape. But what’s the actual status? And are there already viable use cases? We try to cut through the noise and explore the challenges and opportunities of VRPs.

Open banking

Get started with Tink

Contact our team to learn more about what we can help you build – or create an account to get started right away.

Contact our team to learn more about our premium solutions or create a free account to get started right away.