When it comes to assessing the creditworthiness of a mortgage applicant, the process can be cumbersome and lengthy, with many documents required for credit decisioning. By using open banking, mortgage lenders can realize a whole new way of working with multiple business benefits.
Faster and more efficient application process
Open banking can help speed up the mortgage application process by allowing lenders to access a borrower's financial data in real-time. This eliminates the need for manual data entry and verification, which can be time-consuming and prone to errors. By decreasing manual handling, credit providers have more time to focus on other tasks.
Improved customer experience
By increasing the speed and ease of the application process, lenders are not only more likely to complete the mortgage application process, but also have a positive user experience. Norway’s digitally mature customers have the highest expectations and expect simple and intuitive customer experiences. If these needs aren't met, consumers abandon the flow.
Improved accuracy and completeness of financial information
Open banking provides lenders with access to a borrower's up-to-date & accurate financial information, including income and expenses, bank account balances, and credit history. This information can help lenders make more informed decisions about whether to approve a mortgage application, and reduces the risk of human error.
Better risk assessment
Open banking allows lenders to get a more complete picture of a borrower's financial health, which can help them assess the borrower's risk level and determine whether they are likely to be able to repay the loan.
Enhanced security and privacy
Open banking is subject to strict security and privacy regulations, and uses secure, encrypted connections to ensure that borrowers' financial data is protected. This helps to reduce the risk of fraud and unauthorized access to sensitive financial information.
Improved applicant transparency
Open banking provides borrowers with greater transparency and control over their financial data. They can choose which lenders to share their data with, and they can revoke access at any time.
Overall, open banking has the potential to improve the mortgage application process in Norway by making it faster, more efficient, and more accurate, while also helping to protect consumers' privacy and security.
How Monthio helps mortgage providers in Norway
Monthio is a creditworthiness assessment solution for banks and other financial institutions that makes the process of applying for a loan quicker and easier for both the borrower and lender. In fact, the process is so intuitive that 91% of end-users complete the application process for a loan when banks or lenders use Monthio.
Monthio's intuitive creditworthiness solution uses open banking and other financial data to provide a 360 financial overview in real-time, including income and expenses verification and extensive insight into risks and warnings.
All the consolidated data is presented in one easy-to-use dashboard, meaning quick and easy decision making for credit advisors at banks or other financial institutions.