Yolt Technology Services reports Open Banking to enhance lending

By Joy Dumasia

Yolt Technology Services (YTS), one of Europe’s Open Banking providers, publish a report stating lenders could see the time they spend processing the average loan reduce by more than 85% with the adoption of Open Banking technology.

Lenders process an average of 6,258 loans a year, with every single loan taking 3.5 hours for the business to process. Over a year, the average lender will invest £530,053 into loan processing, accounting for staff time and administration costs. This takes an average of 16 days from initial application to payment, mainly due to bottlenecks caused by applicants as they assemble the necessary proof to complete the process.

The adoption of Open Banking technology could significantly reduce these stressors on the efficiency of lenders. 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 16-day wait-time evolve into a process of mere minutes.

Jack Tenwick, Head of UK Sales, 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.”

Recently, IBS Intelligence reported Yolt Technology Services announced the expansion of its Account Information Services (AIS) applicability to provide enhanced data insights for UK mortgage lenders. AIS aims to facilitate the secure transmission of an individual’s transactional data to a regulated lender with that individual’s permission.