Open Banking fintechs partner to speed up CCR process

Zeal and Basiq offer brokers new option in credit assessment process, with potential turnaround times benefits

Open Banking fintechs partner to speed up CCR process


By Mike Wood

The tech environment around loan underwriting is often overlooked in the Open Banking discussion, but now, two CCR fintechs have come together to enhance the ability of brokers to use new regulations to speed up loan applications.

Zeal Solutions and Basiq have partnered up to offer mortgage broker quicker access to customer financial data, aiding them in getting their loan applications completed more swiftly.

“What we’re covering is the digital landscape for underwriting,” explains Dion Nathanielsz, CEO of Zeal. “There’s regulation 209 of the credit code where we have to make reasonable enquiries on a customer’s creditworthiness and part of that is looking at their transactional information, whether they can afford a loan.”

“That involves looking at their income and expenditure. The basic partnership that we have is allowing us to ingest the customer’s savings history and seeing how and if they can afford that mortgage.”

“It’s all digital, it’s done within seconds rather than historically when it took days and weeks to get people to pull together bank statements. Now, we can work through it very logically and streamline the whole onboarding process.”

“If you look at CCR, that’s comprehensive credit reporting. That’s the data that we provide to the credit reporting guys: Equifax, Illion, Experian. That’s information about customer credit performance at other institutions, including their own institution.”

“Let’s say you have a customer looking for a loan at ANZ, but they also have information at Westpac. That credit performance history can be shared across entities.”

“Historically, we’ve always used default information to do underwriting. That only looks at customers who have had loans and if they’re performing badly.”

“Now, with CCR, we look at how they have performed over the last 24 months, whether they pay on time and other functions, such as when they opened their accounts and when they closed them. It gives a really good understanding of that customer.”

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