08 Jul Irish Times: OnlineApplication introducing Open Banking
OnlineApplication was mentioned in the Irish Times about our upcoming open banking functionality. We have teamed up with SaltEdge who are one of the largest providers of this service in the world. It means we can deliver instant banking information within a mortgage application to include a full breakdown of all expenditure and other things that a broker or underwriter would normally be looking for.
Irish fintech firm onlineapplication.ie has teamed up with open-banking specialist Salt Edge in a bid to streamline the traditionally cumbersome mortgage application process.
The partnership will allow consumers to upload their bank statements within seconds and avoid the traditional paper chase that goes with a mortgage application.
It will also allow lenders access to real-time financial data so they can verify the applicant’s identity, account number, income sources and account balance.
Founder of onlineapplication.ie Karl Deeter said the deal had the potential to shave weeks off the standard application process. “We will be able to get a full suite of bank data from any regulated lender in this country within seconds, meaning loan applications can be assessed quicker,” he said.
The partnership represents Salt Edge’s first foray into the Irish market. The Toronto-based group is one of the world’s leading financial technology companies. Its platform has more than 3,100 connected banks.
It also uses data analytics to provide lenders with a financial insight report on applicants to help them better assess applications and, in theory, reduce the risk of bad debts.
“At the touch of a button, we can determine your mortgage affordability and get that over to a lender through our system,” Mr Deeter said. “ In the Irish market that’s a new proposition.”
Making mortgage applications easier means more people will switch providers, which will ultimately drive down prices, Mr Deeter said.
Irish mortgage holders typically pay €2,500 a year more than their European counterparts because of the higher rates charged by Irish banks. The average rate charged on new mortgages here is typically 1.5 per cent higher than the euro zone average.
While the difference between rates here and elsewhere has been coming down on foot of increased competition, the gap is still significant.