Both property owners and prospective tenants know about tenant referencing. It is a process during which, a prospective tenant should provide sufficient information about their identity, current financial and employment status as well as provide references from previous landlords (if necessary) in order to give a prospective property owner more information to make the decision. It’s usually quite a difficult process with a lot of waiting, document preparation, and bureaucracy involved. This could be changed with the aid of open banking tenant referencing. The next evolution in finance is set to also improve the way tenants and property owners communicate.
Open banking tenant referencing is already working in some countries, most notably – the United Kingdom which is, by the way, leading the world’s open banking evolution.
In the past, the tenant (prospective) had to prepare and provide relevant documentation to the property owner as they applied to become tenants. It took time and money. The process itself had many obstacles and flaws that could definitely be avoided if the process could be simplified and streamlined. That’s exactly what open banking tenant referencing is doing. By automating and opening up data sharing, this tool can help tenants land in suitable properties quicker and for owners to make more informed decisions on who they decide to rent to.
Instead of going back and forth between many institutions, gathering the right statements, getting them stamped and authorized, tenants can now just do most of the work with a few simple clicks. Dedicated tools with the help of open banking, only request that the client agrees with sharing of specific information and the landlord receives it for evaluation.
Tenant referencing is one of the most practical uses of open banking in the western world and countries that have tenant referencing. Even though in some locations referencing isn’t required, the technology can be implemented in almost any kind of related field, ranging from mortgage application all the way to proof of legal records, etc.
As with open banking tenant referencing, you can find many different benefits, available to private and corporate consumers via open banking. One of the most important and practical benefits is the quicker and more efficient verification process. It can be implemented in almost any sector because open banking allows for a more seamless data transition from one party to another.
Data delivery happens instantaneously and service providers can make decisions much quicker. In addition, by implementing automated tools and even AI technology, some providers can go as far as automating evaluation and verification. This can be used to measure creditworthiness, for insurance or employment purposes, etc.
The technology is regulated by government or government-empowered regulators and is renowned for its security and strict rules for data management, ensuring maximum privacy and security for the customers. By automating evaluations and verifications, open banking is able not only to work in tenant referencing but many other areas as well.
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