Leveraging Data Synergies: Merging Information for Automated Loan Approvals
In the ever-evolving world of finance, a significant shift is underway as lenders increasingly turn to Open Banking data to inform their decision-making processes. However, fully automating these decisions remains a challenge for many.
This transition towards automation is aimed at increasing the number of pre-approved customers on aggregator platforms, providing a more seamless and efficient service for both lenders and borrowers. A forthcoming webinar is set to delve into this topic, offering insights on how lenders can combine traditional credit bureau data with Open Banking insights to automate more lending decisions.
The webinar promises a smarter, joined-up approach to automation that can lead to better outcomes for all parties involved. The expert panel will discuss common barriers to automation, such as integration, data complexity, and regulatory concerns.
In Germany, some lenders are already embracing digitalisation initiatives, including automation of financial processes. Notably, Deutsche Bank is advancing in payment data standardisation (ISO 20022) which supports automation, while KfW is pioneering digital bonds leveraging new digital infrastructure. Other fintech platforms like Trovata are using Open Banking APIs to automate cash and liquidity management, indicating a trend in leveraging modern bank data.
Despite these advancements, many lenders still rely on manual reviews, which increase operational costs, slow down approvals, and may result in missed opportunities for customers. By overcoming this reliance on manual underwriting, lenders can reduce friction and cost, better serve thin-file applicants with richer insight into affordability and spending behaviour, and navigate regulatory expectations while improving the speed and accuracy of decision-making.
The webinar aims to boost pre-approvals and lend with confidence, even to thin-file applicants. Lenders face pressure to deliver fast, accurate, and responsible credit decisions, particularly when applications come through aggregators and price comparison sites. This webinar offers a timely opportunity for financial institutions to learn, adapt, and thrive in this new era of automation.
