One thing is for certain, Open Banking is going to be huge. Likely to disrupt the banking industry, it’s set to improve customers banking experience tenfold. Read all about Open Banking and how landlords could benefit in this blog post.
What is Open Banking?
It’s an initiative led by the Competitions and Markets Authority that shares your financial data between different banks and lenders (as long as you give permission).
From 13th January this year, the nine largest banks all allowed licensed competitors direct access to their customers’ data to make personal banking easier for their customers. It’ll eventually force all major retail financial services providers to create APIs to share data with other lenders and banks.
With Open Banking, all of your financial products from multiple providers are pulled together which gives better insight into spending patterns. The concept is likely to drum up more competition in the banking industry which could in turn improve the service you receive and potentially even save you some cash in the long run.
How will landlords benefit from this new technology?
As mortgage lenders will have better visibility of a landlords financial data using Open Banking, it’ll make applying for a buy-to-let mortgage a more straightforward process where you can expect to be assessed quicker than usual.
Lenders will have access to information about individual landlords’ portfolios, spending habits and financial circumstances which could speed up the process of applying for a buy-to-let mortgage and remove the need for borrowers to provide lenders with a large amount of documents.
If you’re worried or concerned about sharing your data, you can read more about Open Banking over on Money Saving Expert.