The banking industry changes are influenced by the emerging trend that is called “Open Banking.” What is “Open Banking?” It is known as “open bank data” that provides third-party financial service providers open, secure and efficient access to consumer and small businesses financial data from banks and non-bank financial institutions using application programming interfaces (APIs).
Nowadays, lenders use commonly available credit scores to verify an individual’s creditworthiness while making it impossible to get a loan approval without a prior detailed credit check. Bank statements, income verification, collateral and guarantor’s protection are outdated and complicated ways of securing the lending process.
Usually, no credit check loan comes with very high-interest rates, short repayment terms and high-risk lenders. Having a blank credit history is also common amongst 1 in 10 Canadians. That’s why people are looking for alternative ways to verify their current financial position and prove an ability to repay the personal loan without the necessity to provide a credit score.
BRASS believes that future “open banking” technologies will facilitate the solution of this issue, providing customer details, credit scores alternatives, risk profile assessments and comprehensive credit reports and analysis. Customers want the most effective usage of their data that will allow them to use differentiated, customizable, tailored products with a reliable and secure system that timely addresses their needs. On the other side, small and medium enterprises are seeking a tool to minimize all the possible risks associated with lending.
We understand that customers' convenience and satisfaction cannot be achieved at the expense of data protection. That's why BRASS found a way to utilize all the financial information held by the banks and present an innovative, personalized solution for individuals (borrowers) and SMEs (lenders).
BRASS mobile application presents a sophisticated approach by providing independent proof of credibility via the emerging open banking protocols. It makes the consumer lending process safer, more secure, more accessible and less time-consuming.
Individuals who do not have any credit history can now obtain consumer loans and present proof of their credibility just by connecting their banking data to the BRASS application.
Small and medium businesses can receive access to an alternative credit scoring system and a report regarding a person's financial situation. From a business's standpoint, it will significantly reduce risks associated with a borrower's failure to repay a loan.
July 19, 2022
A startup project is to provide independent proof of credibility via the emerging open banking protocols to make the consumer lending process safer, more secure, accessible, and less time-consuming.