Introducing Tink Loans – streamline consolidation with our new product
In today's financial climate, it’s vital to streamline loan applications and allow consumers to consolidate or refinance their loans – that's where our new Loans product comes in. Read on to find out more.
In today's financial macroeconomic climate, with increasing inflation and interest rates, it’s vital to streamline loan applications allowing users to consolidate or refinance their loans.
With Tink’s new product, Loans, lenders and brokers can gain access (with user permission) to applicants’ loans data within minutes.
With this, lenders and brokers can access real-time, standardised account data in a smoother, more streamlined way – leading to higher conversion, reduced friction, and a more holistic view of a user's running liabilities.
In the difficult current macroeconomic climate, with a cost-of-living crisis and increasing interest rates, consumers are looking for ways to reduce their monthly spending, including their loans. For example, in Sweden alone in 2023 there has been a 24% increase of debt restructuring and refinancing. Tink’s new research also found that 61.5% of lenders surveyed found that there was a higher number of customers requesting repayment adjustments. For lenders, it’s important to make onboarding with as few barriers as possible for customers who are looking to refinance and consolidate.
Tink’s new Loans product reduces the overall time spent on loan applications, in turn empowering lenders and brokers alike to upgrade the experience for their users. A seamless, digital experience is key, according to Tink’s lending report. Unnecessary length and friction in the application process can cause high drop-off – and ultimately customers who are dissatisfied with their loans.
Sometimes customers have to figure out the different loan accounts they have, dig up relevant account numbers (rarely front of mind), fill out a long form with all the information, as well as showcase income information alongside other personal information. Finally, they then wait for a decision to be made by the lender.
And this is why Tink built Loans to help reduce the process from days to minutes.
Now, with Loans, consumers can change loan providers more easily – and potentially get better offers or consolidate their current liabilities to better suit their financial needs.
Also, our new product allows lenders the possibility to increase their conversion and reduce friction for users. One of Tink's clients that has been using Loans has seen its conversion rate for new loan offers increase to 8 out of 10 applicants.*
Loans can be bundled with our other new product, Investments, in order to gain a 360º view of investment and pension data, giving a whole view of a user’s net worth.
How Tink Loans helps brokers and lenders:
Reduced first-party fraud – lenders are able to deliver real-time value by reducing first-party fraud.
Build loyalty –Loans allows end users to gain a holistic comprehensive overview of their loans and the possibility to consolidate them all in one place.
Create convenience – add convenience and augment your customer experience by removing manual user tasks, streamlining the onboarding process. This means less friction for the user and less back-office time for the lender, opening up potential for proposing a better deal to customers – with up-to-date loan information.
Grow share of wallet – by analysing customer loans, you can consolidate or propose a better loan offer which can increase demand for your services and therefore grow your share of wallet.
Increase affordability accuracy – make affordability checks more holistic by combining Tink Loans with Income check and Expense check. This means fetching loan account details in relation to influential lending parameters.
How it works
Loans provides clients with loans account data via a single API, enabling access to the information instantly, rather than in days. The product includes mortgage, student, personal and vehicle loan accounts, and can be embedded seamlessly into your onboarding flow.
Once the user chooses to transfer their loan or consolidate, they are directed to the authentication step where they select and authenticate with their bank. From there, Tink fetches the raw loan account data from the bank's API and returns it in a standardised format. This results in customers being able to easily analyse the loans data of their users, unlocking multiple use cases such as transferring loan accounts from one financial institution to another, cutting the transfer time from weeks to minutes.
Loans is initially going live in Spain and Sweden, with other markets to follow.
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We are able to fetch data from mortgage, student, personal and vehicle loan accounts, including:
Account data – financial institution, account name, account identifiers (IBAN, BBAN, BIC)
Type of loan – mortgage, student, etc.
Collateral –for mortgages, address and value
Loan volume –initial amount, amount paid and current balance
Date –origination date, next and previous payment, expected payoff date
Identifiers –loan account number
Interest rate –value, fixed/variable rate
Instalments –amount and period
This means that lenders and their users are able to rely on current, up-to-date information and user-friendly, digital processes rather than outdated manual methods where consumers are expected to fill in long forms in order to consolidate a new loan offer or to transfer a loan.
How to get started with Tink Loans
Open banking is powering the future of lending. Loan consolidation is done in a number of ways but our new Loans product takes advantage of open banking technology to do it in a more streamlined and seamless manner. If you’re a bank or lender aiming to provide a better customer experience, or want to streamline the application process, get in touch.
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*A Tink user using Loans was able to accept 8 out of 10 customers and give them new offers.
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