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.
Open Banking
