Adopting Open Banking

Brokers / 20th August 2021

As a progressive fintech we are always looking forward to creating opportunities for our community of customers and partners by embracing new technology and initiatives to improve the service we deliver.

One significant improvement to the customer experience is the introduction of an Open Banking option helping us answer important underwriting questions ourselves and give valuable time back to you and your customers.

Innovating our underwriting process with Open Banking

Having previously requested Full Accounts, Monthly Management Accounts and a completed supplementary questionnaire, we aim to capture all this information through Open Banking wherever possible. Should your customer be unwilling to use the tool they can still provide these same documents themselves, as they do today, in order to assess the affordability of the loan.

We will run this process as an initial pilot to test the appetite of customers to use this method. Any questions regarding this new approach should be directed to underwriting@pcl.co.uk
We look forward to outlining further initiatives we are introducing to ensure that those we are partnering with are provided with the most efficient, frictionless customer journey possible.

If you are not familiar with the term ‘Open Banking’, here is a brief explanation. It’s a reference you will hear more and more as leading digitally led businesses supporting the financial services industry embrace innovation to improve customer service.

What is Open Banking?*

Open Banking is a secure way for customers to take control of their financial data and share it securely with organisations other than their bank.

By sharing this data with authorised third parties, customers can access services that help them manage their money. This could mean access to smart savings apps, finding better mortgage rates or accessing credit. Businesses can also use Open Banking – for example, to manage cash flow or make it easier to receive payments.

The Open Banking Implementation Entity was set up by the Competition & Markets Authority (CMA) in September 2016 to fulfil one of the remedies mandated by the CMA following an investigation into competition in UK retail banking. The open banking ecosystem is designed to deliver fairer, more transparent banking and financial services.

*openbanking.org.uk

You and your customers can find out more by visiting the Open Banking website

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