With the Payment Services Directive 2 (PSD2) that regulates Open Banking in Europe set for adoption in September 2019, most innovative financial institutions are already preparing for a new era of access to account information.
Here are a few things any bank and lender can do to prepare:
1. Make a critical assessment of the existing income verification process.
How are you currently verifying income and what are the results? What percentage of applications are rejected due to insufficient income data? If the answer is “too many”, you’re ready for a change.
2. If you're not already using an account aggregator, consider trying one. Or several.
Even before Open Banking comes into full force, it’s possible to use third-party account aggregation solutions that grant you access to customer account data in an automated way. Here's a list of some aggregators that provide the service.
If you’re already using an account aggregator, consider using a good transaction categorisation engine on top.
3. An account aggregator alone is often insufficient for verifying income with high accuracy. Income verification is only as good as thetransaction categorisation algorithm behind it. There are a few companies on the market that specialise in accurate income verification algorithms, Nordigen being one of them.
Here’s what we've been up to recently.
A while back we shared a list of 5 fintech podcasts we listen to at Nordigen. This time we wanted to share a shortlist of experts that we follow and frequently read to stay on top of fintech news. While there are many finance and tech professionals in the fintech industry, we've shortlisted our favourite thought leaders that we find to be truly exceptional and engaging.
With Nordigen's API Platform, you can start building data-driven services - powerful apps, onboarding flows and seamless customer experiences today. The platform guides developers and businesses to installing data aggregation, assessing potential risks and onboarding their customers. In this article, we will guide you through 5 easy steps of turning raw account data into valuable insights.