This archive report was first published on 16 July 2020.
On July 16, 2020, George Bodo wrote about the transformative power of open banking in loan processing.
Conventional loan applications are tedious and costly, involving lengthy forms, credit analysts, and multiple checks. However, open banking offers a more efficient solution by making systems and data more mobile and interoperable.
With open banking, financial institutions can outsource credit scoring to third-party engines through API integration, automating appraisals and credit scoring. This reduces the time it takes from weeks to just minutes.
Platforms like Weza.io are already playing in this space, providing white-labelling solutions that include end-to-end loan systems, credit scoring engines, and fraud mitigation algorithms.
However, fraud has become a significant issue in the micro-lending space, with savvy fraudsters stealing identities and committing end-to-end fraud. To combat this, Weza.io embeds robust fraud mitigation mechanisms, including algorithms that check data points for authenticity.
