Open Banking for Lenders

Land of Opportunity

Enabling effortless lending with open banking offers great opportunities for lenders. This will result in onboarding clients faster and creates a fuller picture of the client. Creating a smooth digital flow from application to underwriting.

Unfortunately, there are barriers for banks such as:

  • Manual underwriting; The associated costs and low quality reduce viability of serving many segments.
  • Incomplete and thin files obstruct uncollaterized lending and makes competitive, risk-based pricing difficult.
  • Irresponsible lending; Once a client is in need of a loan, they may not share the full picture. This results in a high change of excessive debt burden or defaults.

Fyndoo makes implementing Open Banking (PSD2) a breeze:

  • Determine loan affordability based on PSD2 transaction data.
  • Use an extensive taxonomy of 24 main purpose categories and 101 sub categories.
  • Use this data in your risk model, price model and acceptance criteria.
  • Monitor loans automatically and receive preventive signals.
  • Fyndoo works with selected AISPs (Account information Service Providers) to retrieve account data.

The benefits of implementing Open Banking are:

  • Determine affordability; Machine learning (ML) is used to categorise client transactions and provide meaningful data for determining affordability.
  • Digital process; A lot of manual actions can be automated and partial and inferior solutions (like OCR for scanning income statements) can be phased out.
  • Reduce risk; Use clean, standardised and real-time financial transaction data to inform your risk model. A transaction is not an interpretation; it is a fact!

Do you want to know more, please download the Open Banking for Lenders brochure  👇 .

Open Banking for Lenders

Enabling effortless lending