Digital mortgage platform Koodoo has selected challenger credit reference agency Credit Kudos as Open Banking provider.
Credit Kudos’ analysis and insights, based on real-time bank transaction data, will provide lenders with an up-to-date picture of a borrower’s financial health, helping lenders reduce application times whilst offering a better customer experience.
The use of Open Banking will remove the need for borrowers to manually upload documents, when carrying out ID and credit checks.
Seb McDermott, co-founder & chief executive of Koodoo, said: “Open Banking technology will be a game changer for our sector and help even more people buy their dream home.
“The current unprecedented economic circumstances have severely altered the mortgage landscape.
“Many people have seen their income fluctuate as a result of the COVID-19 pandemic, making it increasingly difficult for mortgage lenders to rely on traditional credit bureau data to assess affordability.
“Open Banking data can help lenders better understand a borrower’s financial situation, going beyond traditional credit scoring to analyse real-time bank transaction data on incomings and outgoings.”
This post has originally been featured in Property Wire.