Open Banking could cut loan processing times by 85%



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Lenders could see the average time they spend processing loans reduce by more than 85% with the adoption of Open Banking technology, according to research from Yolt Technology Services (YTS).

Using account information services (AIS), manual processes requiring applicants to provide information such as complex, unstructured income and expenditure data are no longer necessary, which could see the current wait time reduced to minutes. 

At the same time, Open Banking allows lenders to cut out manual verifications, reduce costs, and offer an instant credit decision with fewer human errors.

Jack Tenwick, head of UK sales at YTS, said: “Both lenders and applicants want a frictionless process from application to decision to payment, however the current system that requires the manual intervention by both parties is both inefficient and frustrating. 

“Through the power of Open Banking, relevant data is automatically uploaded and processed, saving time for both parties and reducing the risk of decisions made in error.

“For lender businesses, this means that not only can they offer a superior customer experience, but that their own capacity for growth is greatly increased. 

“As we anticipate a greater number of businesses looking to invest in potential growth as we emerge from Covid, this will allow lenders to meet that demand and remain competitive.”

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