Tink, Europe’s open banking platform, has launched Expense Check, a new feature meant to simplify and speed the consumer sustainability verification system for lending institutions. Expense Check will first be made available in the Nordics and the UK before being expanded to more of Europe.
With the help of open banking, the technology enables lenders and financial institutions to determine a user’s budget quickly and easily at the time of application. It gives lenders an up-to-date and verified view of fixed and discretionary spending by connecting to applicants’ bank accounts.
Tink’s Expense Check fulfills the demand for risk assessments that are more stringent as the cost-of-living problem is considered in upcoming affordability tests. Regular affordability checks are also made possible by the software, aiding lenders in adhering to regulatory obligations.
With rising expenses of lifestyle and inflation, Tink’s most recent sustainability tool allows lenders to see applicants’ affordability in more detail and in real time, considering factors like housing prices, loans, health coverage, amenities, and commuting. Additionally, it can expand access to loans for those who find it difficult to establish their creditworthiness through more conventional checks by providing lenders with an accurate picture of applicants’ outgoings.
Tasha Chouhan, UK & IE Banking Lead at Tink, stated, “Having an up-to-date, holistic picture of someone’s financial situation is vital when it comes to making an accurate risk assessment. Not only does Expense Check streamline the way lenders process data, but it also heightens user experience, with applicants benefiting from a simple, automated application process that doesn’t require any paperwork – and brings near-instant results. At the same time, because access to data enables lenders to make more accurate affordability decisions, it can help to make financial services more accessible, particularly for those with fluctuating incomes or thin credit history.”
A system that accelerates income verification via open banking services was introduced by Tink early in the year and named Income Check. With the use of this tool, businesses can quickly verify an employee’s income using real-time information from their current accounts. Through the same loan application procedure, the two technologies can now be used in tandem to quickly and smoothly verify both income and expenditure. This cuts down on application time while improving approval rates and user experience.