What is Open Banking?
Open Banking is a safe way for you to share transaction data to make sure you meet our lending criteria when you apply. This is a much more secure and convenient way to share your transactional data than sending over bank statements.
If you’d like to read some more about Open Banking, we wrote a handy blog here that tells you everything you need to know.
Here at Fronted, we use Open Banking to verify your income and expenditure alongside carrying out a soft credit search. We assess the information to see if a Fronted Deposit is something we'd be able to support you with.
How does connecting your bank account work?
After you’ve filled out your details during sign up, it’s time to connect your bank account. We use a Credit Reference Agency called Credit Kudos to be able to do this. Once you’ve arrived at this step, you select your bank account from the list and you’ll be taken to your bank’s website to complete the process.
Your bank will ask you to authorise the connection, which can either be through their app or they can send you a text message with a code. This process works a little differently for every bank, so you should be able to find some more information on how this works on your bank’s website.
We support most of your favourite banks when connecting through Credit Kudos.
Please get in touch with us if the bank you’re with isn’t on the list so we can let you know whether this bank is currently supported by our Open Banking provider.
If you have a second bank account that you receive an income into or use for some of your expenses, please make sure to also attach this account to your application.
What happens next?
When you’re all set up and connected, we’ll be able to use your transactional data to verify your income and expenditure. We use this data to make sure you meet our lending criteria when you apply.
If you are eligible for a deposit loan with us, we'd then (and this is only after you actually accept the loan and take it out from your account) be able to collect the money for your repayments from your bank account every month, on a date that you would choose for the payment to come out on.
If you aren't eligible we wouldn't do this and we only use the connection to verify your income and expenditure. There aren’t any charges for connecting your bank account to your application through Open Banking.
Any more questions?
We hope this article tells you everything you need to know about connecting your bank account to your application through Open Banking.
If you do have any further questions, you can chat to us via the ‘Contact Us’ option in the menu bar or contact us at [email protected].