In the world of finance, there are two tribes of companies: there are the followers and there are the leaders. The choice is yours. Can your business spot open banking innovation opportunities and capitalise on them before the competition? If so, let’s talk about open banking.
And if you’re new to open banking innovation…
That’s okay too. We understand some businesses may need help spotting opportunities in order to become true leaders and innovators. We’re on a mission to educate and empower providers, so they can drive growth and user-centric services.
We are Eliga, the UK’s first truly collaborative digital transformation consultancy. Last year, we launched OPEN, the open banking platform that will revolutionise how credit risk is assessed by financial services. Now, we’re looking for a partner in the financial sector to develop this industry-changing concept together.
Imagine the benefits of a totally transparent risk assessment for businesses and customers…
The current model of how risk is assessed by banks and lenders is fatally flawed. It takes too long, and too much effort. The criteria used in different assessments vary wildly without explanation. The only reason that financial risk is still measured in this obscure way is that it’s the status quo, and users haven’t experienced better alternatives.
‘So what’s gone wrong here?’ Transparency. So many consumers have the right financials for the credit cards, mortgages or loans that they’re applying for, but providers are working off old data and do not realise these customers meet the criteria. Take this couple for example, who was declined a mortgage by three different banks. They had the savings and earnings to properly manage that loan, but no way to show it as they were self-employed.
That’s where OPEN comes in. Open banking uses open APIs that enable third-party developers (that’s us!) to build 360-degree views of customers’ data in one place, empowering financial providers and industry decision-makers. Providers can access these APIs to view all the necessary data from consenting customers to make better-informed lending decisions that are secure and transparent.
Even better, this all happens instantaneously – no more waiting days to run all the required checks!
Open banking innovation is on the rise
Without question, open banking is the future of finance. More than 2.5 million UK consumers and businesses use open banking-enabled products as of January 2021. This represents a monumental 150% increase from just 12 months before! FinTech companies are spending millions to build open banking platforms and secure that ‘player one’ advantage. But there’s a gap in the market.
At the moment, banks and aggregators are the most common use case of open banking. This application enables users to collate all their data from current accounts to analyse spending patterns and so on. But none of the big players has truly tapped open banking’s potential: having access to all that data is perfect for assessing financial risk. If our self-employed couple above applied for a mortgage via an open banking API, their loan provider could see that this was a low-risk loan, despite the couple being rejected by their banks’ current criteria!
We’ve always known that data is king. When it comes to risk assessment, it’s obvious that creating a method of accessing more financial information will empower businesses and consumers. For your business, the scope of loans and offers you can provide widens dramatically, as you understand more about the people you’re lending to. For your customers, they can enjoy the simplicity of the user experience, resting assured that their data is secure throughout, saving them weeks of hassle.
OPEN by Eliga wants you!
Join us in creating the new standard: a totally transparent and secure process for assessing risk.
OPEN by Eliga will make assessing risk transparent and instantaneous, saving days and even weeks of chasing bank statements, passport copies and other information. We know that open banking works and that it’s a direct upgrade from traditional risk assessment. But we don’t know yet how user and business needs will evolve as attitudes shift in the industry.
We want to partner with a company that’s excited about moving into the world of open finance. We’re looking for leaders and visionaries, who recognise the benefit of this technology and what it can do for their business and customers.
Discover what open banking can do for you
Please get in touch to discuss what open banking can do for your business. We can’t wait to hear from you!