Open banking platform Tink is launching a new product that provides lenders real-time access to applicants' fixed and discretionary spending, allowing them to make faster and much more accurate affordability assessments.
Expense Check from Tink is going to be introduced in the Nordics and also the U.K. before a wider European launch, based on a Wednesday (Aug. 31) press release. The brand new solution complements Tink's Income Check product released in January.
Learn more: Tink Intros Instant Income Verification Service for Banks
Income Check enables lenders to verify an individual's income using real-time data using their bank account, PYMNTS reported at that time. The tool uses facial recognition or perhaps a single-click verification to connect to a user's bank account, where transactions are grouped by salary, pension, benefits and funds deposits.
Meanwhile, Expense Check factors the cost of living into future affordability to assist lenders tighten risk assessments. The tool also allows for regular affordability reviews so lenders have clear, accurate insights.
\”Having an up-to-date, holistic picture of someone's finances are vital with regards to making an accurate risk assessment,\” said Tasha Chouhan, U.K. and Ireland banking lead at Tink. \”Not only does Expense Check streamline the way in which lenders process data, it also heightens consumer experience, with applicants taking advantage of a simple, automated application process that doesn't require any paperwork – and brings near-instant results.
\”At the same time, because access to data enables lenders to make better affordability decisions, it can benefit to create financial services more accessible, particularly for those with fluctuating incomes or thin credit history.\”
With record inflation and cost-of-living struggles, Tink's affordability product offers lenders a way to gain real-time details about applicants' affordability, with insight into categories including housing costs, loan payments, insurance, utilities and transportation.
Applicants that allow lenders to obtain an accurate view of their situation can improve their use of finance, per the discharge, specifically for people who find it difficult to prove their creditworthiness through classical checks.