Open Banking & Account Data · Use case

Verify income and affordability with account data

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Short answer

With the customer's consent, an open banking provider reads their accounts and turns transactions into income, expenses and balance insights. Lenders and onboarding teams use this in place of payslips and statements — faster for the customer and harder to fake.

What this use case is

With the customer's consent, an open banking provider reads their accounts and turns transactions into income, expenses and balance insights. Lenders and onboarding teams use this in place of payslips and statements — faster for the customer and harder to fake.

Who builds this

Consumer and SME lenders
BNPL providers
Landlords and rental platforms
Neobanks

What your customer sees

  1. 1Chooses their bank
  2. 2Approves sharing in their banking app
  3. 3Returns to your flow
  4. 4Gets a decision without uploading documents

How Open Banking & Account Data solves it

1

Customer selects bank and consents

Customer selects bank and consents

2

Provider retrieves accounts, balances and transaction history

Provider retrieves accounts, balances and transaction history

3

Transactions categorised; income and recurring expenses identified

Transactions categorised; income and recurring expenses identified

4

Affordability indicators calculated

Affordability indicators calculated

5

Results sent to your decision engine

Results sent to your decision engine

6

Consent and data retained per your policy

Consent and data retained per your policy

Want to have

  1. Coverage of your customers' banks
  2. Sufficient transaction history
  3. Income and expense categorisation
  4. Affordability outputs
  5. API delivery to your decision engine
  6. Audit of consent

Optional

  1. Multi-account aggregation
  2. Business account analysis for SMEs
  3. Ongoing monitoring with renewed consent

Design decisions

Analysis

Provider's affordability outputs
Raw data into your models

speed versus control.

Timing

One-off check
Ongoing access

simplicity versus portfolio monitoring.

What to put in your RFP

Coverage

  • banks and history depth

Analytics

  • income
  • expenses
  • affordability

Integration

  • outputs to decision engine

Consent

  • expiry
  • renewal

Commercials

  • per check pricing
Add these to an RFP

How to evaluate providers for this use case

  1. 1Coverage for your customer base
  2. 2Accuracy of income detection on test data
  3. 3Conversion of the consent journey

Pitfalls

  • Assuming all customers bank with covered banks
  • Treating provider categories as final without review
  • Using data beyond the consented purpose

What providers will ask you

  1. Customer markets
  2. Application volumes
  3. Current affordability process
  4. Credit policy

Other Finlane categories that cover parts of this

This use case is solved mainly with Open Banking & Account Data. These categories cover specific parts of it and can be tendered alongside it.

Lending & Credit Decisioning

Decisioning and origination using the data

KYC, KYB & Identity

Identity checks in the same journey

Frequently asked questions

Other Open Banking & Account Data use cases

Add pay-by-bank checkout

Offer instant account-to-account payments as a cheaper alternative to cards, with SCA built in.

Automate accounting and reconciliation

Pull transactions and balances into an accounting or FP&A product, categorised and enriched.

Power personal finance and budgeting apps

Give users a unified view of their bank, card and loan accounts with enriched merchant data.

Scope verify income and affordability with Open Banking & Account Data providers

Scope this use case