Automation of banking processes through Open Banking
The lending workflow can be digitalised without complex integration into the IT landscape
Artificial intelligence is on everyone’s lips more than ever, not least due to the current hype surrounding the chatbot ChatGPT. Standard processes such as lending can already be automated and accelerated in the banking sector with solutions based on machine learning. But how can these solutions be integrated in a resource-efficient way?
In this interview, we talk to Sven Wackermann, our Head of Product Management, about how banking processes can be digitalised and the granting of loans automated with the help of Open Banking.
Sven, how can lending be digitalised through open banking?
Open Banking shows its full strength when it comes to lending processes, application checks and credit decisions. These processes are faster, less error-prone, reduce effort and thus save time and costs. Nevertheless, financial institutions sometimes hesitate to utilise these open banking solutions. The reasons for this are usually the fear of high initial investments and cost-intensive interventions in the back-end system.
How can these high initial investments be avoided?
KreditCheck & LoanValidatorCustomers’ needs are individual, as are the existing requirements at banks and financial institutions. With finAPI KreditCheck, we have therefore developed a web-based platform with a modular structure as a zero-integration solution. This makes it possible to digitalise the entire lending workflow or just individual parts of it – depending on the banks requirements. A technical integration into the existing IT system landscape is not required. The application is started via a specific URL and can therefore be easily integrated into the bank’s website or app. The front end is designed in the bank’s respective look and feel.
What are the benefits of the finAPI KreditCheck for banks, customers and, last but not least, bank employees?
In simple words, the KreditCheck is a credit check via account analysis in real time. In addition to account analysis via the finAPI banking API, this also includes a digital set of decision rules for the credit decision. With the consent of the account holder, current and credit card accounts can be added to the account check and the account data can be analysed via the finAPI interface.
The set of rules can be customised to the bank’s individual requirements. It takes into account the account type and management, an income and expenditure statement as well as special risk factors. This information is passed on to the bank’s advisors, who can use it to make a quick and reliable credit decision. The bank also receives a PDF file that can be used to document the consultation in an audit-proof manner.
The KreditCheck can also be extended to include obtaining Schufa A information and the ‘finAPI LoanValidator‘. The LoanValidator automatically compares the loan agreements identified during the account check with loans reported to Schufa. If, for example, more loans are found at Schufa than were identified in the account, banks can ask the customer to include further accounts in the process. The LoanValidator is a finAPI product and was developed in co-operation with Schufa. It is absolutely unique on the market.
Thank you very much, Sven! Can you summarise the most important advantages of your solution?
Would you like to find out more about the digitalisation of lending? Get in touch with us.
Contact us
finAPI GmbH
Adams-Lehmann-Str. 44
80797 München
Social Media
BaFin
Officially licensed and supervised by the German Federal Financial Supervisory Authority (BaFin).
TÜV certification
