Affordability solutions that are leading the way in lending

2 min read|Published September 07, 2022
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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.

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