How open banking is reducing risk and powering more inclusive lending

2 min read|Published November 04, 2022
How open banking is reducing risk and powering more inclusive lending

With data-driven risk-decisioning, lenders can process loan applications in minutes rather than days – significantly simplifying the loan origination process. Instant access to real-time transaction data provides better insight into affordability, paving the way for more efficient, user-friendly, and financially inclusive lending.

TL;DR – Quick summary
  • Open banking technology is helping to develop risk decisioning products that support lenders to approve more loans while taking less risk.

  • A deeper understanding of applicants’ spending habits has made the entire risk assessment process far more reliable. 

  • Download our ultimate solutions guide to see how open banking can simplify and streamline the loan application process.

TL;DR – Quick summary
  • Open banking technology is helping to develop risk decisioning products that support lenders to approve more loans while taking less risk.

  • A deeper understanding of applicants’ spending habits has made the entire risk assessment process far more reliable. 

  • Download our ultimate solutions guide to see how open banking can simplify and streamline the loan application process.

Here’s how open banking simplifies and streamlines loan application processes while improving underwriting workflows for lenders. 

Reduced risk of fraud and incomplete applications

Open banking allows the financial industry to move away from traditional credit checks, which are often manual, slow, and unreliable. With Tink’s technology, lenders can gain access to up-to-date financial data provided straight from the source, such as the applicant’s account and transaction information. Using this financial data, we have built easy-to-use risk-decisioning products that support lenders to approve more loans while taking less risk.

Open banking also offers a more tailored check on the applicants’ financial health. With a deeper understanding of their spending habits, we’ve made the entire risk assessment process more accurate, relevant, and fair. Replacing manual input with verified data from applicants’ bank accounts also reduces the risk of human error and fraud. 

Using Tink’s open banking powered lending tools significantly simplifies the often complex loan origination process, so that applicants can enjoy a faster, safer, and more convenient onboarding journey. With instant account verification they can get a response in minutes rather than days – a seamless user experience that boosts conversion while minimising drop-off.  

One platform – many solutions

Curious about what open banking can do for your business? Dive into our ultimate solutions’ guide to learn more about the tools powering the next generation of finance.

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