Responsible Lending

Sponsored by: Envestnet | Yodlee

What is Responsible Lending?

Responsible lending is concerned with ensuring that consumers and businesses can borrow the money they need, when they need it, at levels they can afford to service and repay. The Australian economy is heavily influenced by the efficient flow of credit. It spurs economic activity, encourages development, and creates financial prosperity when used appropriately. However, credit also carries risk. When lending decisions are made without high quality, relevant, data, borrowers are at risk of taking debt they can’t manage.

What’s the challenge?

Today’s credit evaluation process is manual, subject to fraud, prone to use of outdated banking statements, leading to high operational costs and inaccurate reports.

Legacy technology means that verifying application information can be a lengthy process, increasing costs for lenders and slowing the approval of credit to borrowers. Too often, lenders need to rely on outdated bank statements, and borrowers need to complete lengthy application forms. All this means lending decisions can be slower than they need to be or rely on incorrect information.

How can technology help with responsible lending?

For Australian financial institutions and FinTech innovators, Envestnet | Yodlee Credit Accelerator can quickly and cost-efficiently provide a complete, accurate, and real-time financial picture of the borrower.

The technology leverages flexible, consumer-permissioned, and secure data acquisition that enables financial service providers to generate a comprehensive report which includes income and expense summaries demonstrating compliance with Responsible Lending guidelines. It also helps to identify key credit risk and lifestyle factors, such as whether applicants regularly eat out, pay their bills on time or pay large amounts of interest on their credit card. 

How can I find out more Envestnet | Yodlee Credit Accelerator?

Supported by Envestnet | Yodlee’s core market-leading data aggregation and machine learning capabilities, Credit Accelerator categorises and enriches income, expenses, and transfers, creating deeper and more accurate credit insights. The intuitiveness of this technology will allow for multiple automated and curated feedback points, which will improve categorisation, and tailor it to any credit use case and internal or regulatory scheme. Moreover, there is the option for lenders to build Envestnet | Yodlee’s advanced API technology into their app or service.

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Envestnet | Yodlee