Open Banking explained
Updated: May 8
Technology is always evolving to streamline our everyday lives. In every walk of life, there is a constant progression in how technology is used to make common practices run more smoothly. The mortgage sector is no exception. Open banking offers a customer-centric experience as it focusses on reducing the time and effort needed from you. With more and more processes being moved online – open banking limits the need to visit an actual bank and allows banks and budgeting apps to securely access your financial data – helping you save, budget and get on the market as efficiently and securely as possible.
In recent years, open banking has gone from strength to strength. With the rapid progression in the world of Artificial Intelligence and how it can be integrated within the financial services industry, open banking has opened doors to various new opportunities to experience a more efficient way of banking.
Open banking has made things like budgeting advice apps more popular, as they can securely access your spending habits and use the data to help you save. In the midst of a cost-of-living crisis, managing your money has never been more important – so open banking has come along at the right time to make these services more readily available. Being able to operate almost exclusively remotely – open banking allows for a huge increase in flexibility and can make so many menial tasks that would normally take an afternoon on the high-street take considerably less time from the comfort of your own home.
There are a multitude of reasons to suggest that those looking to apply for a new mortgage can greatly benefit from the increase in efficiency offered by open banking AIS (Account Information Services). Given the huge backlog of mortgage applications, caused primarily by the pandemic, an increased use of open banking can help to power through and get applications completed more quickly. Using open banking can help to streamline a large proportion of the mortgage process, making it much simpler and less time-consuming to apply for and manage a mortgage. Even after your mortgage has been secured, open banking can continue to help. Faster access to credit and financing as well as the ability to manage and view finances more easily are just some of the ways that open banking can make a difference to your finances.
Another positive in regard to open banking is the absence of human error. Mortgage applications can be held up for many reasons, but open banking and the use of AIS not only eradicates the possibility of employees making honest mistakes during the mortgage process. It can also operate at much higher speeds than any human employee could possibly manage. The term open banking may even sound invasive to some, but it is a secure way of making banking easier. It is simply a way of securely speeding up the process – something that is sorely needed given the current housing situation.
If you’d like to discuss the options available to you, contact one of our adviser's today.