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.
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.
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.
In our latest webinar, we’re joined by David Lais, Co-Founder & Managing Director of ecolytiq to discuss how we have partnered to create a seamless way for banks to seize the opportunity and offer combined financial and sustainability coaching – and what we can expect for the future.
Open banking tools like Tink Money Manager and Tink Data Enrichment help its partners, like Savings Banks Group, offer streamlined user experiences that coach consumers towards financial wellness.
Following the European Commission's PSD3, PSR, and FIDA proposals, here we examine some key considerations surrounding the potential transition of account information services (AIS) from PSD3 to FIDA.
Contact our team to learn more about what we can help you build – or create an account to get started right away.