How Open Banking and API change the way you bank

The United Kingdom introduced open banking legislation in 2018 to support and improve the loan system. Prior to this legislation, the loan application and paper processing took a long time to check and complete. As a result, the mortgage lenders made a lot of money thru open banking because it makes working with loans easier and lowers administrative costs, they also do not have to select data points manually. It also encourages the transition from traditional banking to online banking. But what exactly is “open banking?” It means that banks are permitted to disclose information about a customer’s financial data to third parties.

However, not all businesses agree that automating work processes is a good idea. Nine out of ten knowledge workers who analyze this believe that automatic work has enhanced employees’ work lives. The standardization process helps you minimize errors, save time, which in turn allows you to reduce costs and increase productivity and efficiency.

Our world is becoming more fast-paced and more technological so you must keep up with the progress. A lot of companies use big data and analytic boosts to get more information about their customers. They can analyze and process this information and have a look at which product is the best for which customer. This information has also benefited the companies because it allows them to use some specific program to determine whether the customer is creditworthy and able to repay the loan within the specified time frame.

Another really helpful tool is the API (Application Programming Interface), which is a connection between two or more software and lets them interact with each other. It makes it very easy to save and work with different systems and their client information. The digitalization of the mortgage process benefits both parties involved because it saves a ton of time and money.

What is also very exciting is that the way of communication is more convenient for the user. All you have to do is open the program, make a call or send a message, and your broker will be able to utilize it or take your response. Customers can also utilize this to transfer documents, saving them from having to visit a branch and bring their paperwork with them. Instead, they can load their documents into a program, where brokers can access them and let them know if the customer has overlooked anything.

It is also a good depot to save important pieces of paper. Banks and mortgage brokers use programs with effective firewalls and protection measures to keep your personal information safe. On the other hand, nobody can steal your paper, you cannot misplace it on your own, and fire or similar disasters cannot damage it.

This post was written by Jo Marie Fuchs who was a research intern at Irish Mortgage Brokers in October of 2022.

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