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New responsible lending product launches

Envestnet | Yodlee has launched a new product that provides a real-time financial picture of a borrower in the hopes of helping lenders make “educated lending decisions”.

The data aggregation and data analytics platform has launched a new product for those operating in the lending space, the Envestnet | Yodlee Credit Accelerator.

The new tool – said to be in beta testing with a number of lenders – aims to help Australian and New Zealand financial services companies more readily provide credit by providing them with a real-time picture of a borrower’s financial position.

By utilising various data sources, including the Consumer Data Right, the tool provides financial institutions and fintechs with a report on the borrower, including income and expense summaries, and key credit risks. 

The company said the Credit Accelerator goes beyond a baseline categorisation of a consumer’s spending transactions and can provide an additional level of insight on topics like transfers, recurrences, discretionary versus essential spend. It also provides for flexible mapping to responsible lending or custom income and expense category groupings.

Lenders would also be able to utilise API technology to embed the Credit Accelerator tool into their existing apps or services.

Envestnet | Yodlee added that the technology eliminated the need for paper statements, thus reducing the risk of fraud and high operational costs, and can “increase confidence in the accuracy of loan decisions”, as well as speeding them up.

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The company stated: “[T]he reports generated by Envestnet | Yodlee’s Credit Accelerator will increase the speed at which a loan can be received, as credit and lending decisions can be fast-tracked with this easily accessible, complete financial picture.

“Until now, getting a complete understanding of an applicant’s spending and income history to meet responsible lending guidelines has taken weeks, even months. Envestnet | Yodlee’s Credit Accelerator can pull and present data reports in less than 10 minutes.”

Tim Poskitt, the country manager for Australia and New Zealand at Envestnet | Yodlee, added: “The responsible lending landscape in Australia and New Zealand is in a moment of potential transition with the government proposing to remove responsible lending obligations (RLOs) to fuel economic growth in the wake of COVID-19. Therefore, the need to use technology and data to help make accurate, insightful decisions has never been higher.

“This new technology gives considerable power to both financial service providers and consumers alike as they can be safe in the knowledge that accurate decisions are being made.”

While the technology is still in beta testing, the company told Mortgage Business that it is also currently working on integrations with broker groups and software platforms to enable a more streamlined experience for brokers.

[Related: 86 400 partners with data analytics firm]

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