Open banking is one of the functionalities that the Trustii application has to guarantee landlords true and fair information about their potential tenant’s ability to pay. This means that beyond offering a credit score, it offers the necessary data to better evaluate a potential tenant.
However, the subject of open banking deserves to be better explained, as we will then understand how it works, what benefits it presents for Trustii and the tenant selection processes. Let’s get started!
What is open banking?
Open banking is a system that allows financial data to be shared with companies that have financial technology (fintech) or use APIs. All information shared can be confidential, but customers must give their consent. In short, it is a valuable tool for the advancement of financial services.
APIs are used to share financial data
The use of APIs in open banking helps banks integrate various systems into their business processes. Banking institutions share data with an API provider, which creates protocols for data transfer. Companies developing API-based applications must communicate with both the provider and the bank to gain access to the data. Open banking APIs are an important tool for banks, as they help them to optimize the entire banking process in digital services.
How does open banking work?
With open banking, banks allow access of financial and personal data to external providers. These are often shared via a secure online channel with the aim of providing better data analysis and gaining insight into the customer’s financial needs. Of course, open banking is not only a benefit for the consumer, but also for the institutions that need this type of information.
What are the benefits of open banking for Trustii owners?
In case you didn’t know, the Trustii application offers landlords better accessibility, choice, evaluation and results of potential tenants. One of the biggest fears is the risk of non-payment of rent, therefore, a series of investigations ranging from legal to financial are made to reduce the levels of real estate risk.
Traditionally, however, the landlord usually asks the potential tenant to submit their credit check and other financial data that requires too much time and paperwork. But with Trustii and open banking, that scenario has changed as it allows tenants to share their financial data and thus be able to show objective indicators on payment capacity, credit score and other necessary elements in a matter of minutes.
Suggested reading: The benefits of obtaining a pre-rental survey in just a few minutes.
Real-time financial data enables Trustii’s owners to make better risk assessments. This data can be used to analyze people’s spending patterns and behaviors. Open banking allows limited financial information to be shared without exposing sensitive customer data.
Why does the tenant need to connect his bank account?
Bank authentication is the fastest and most efficient way to submit a rental application.
Access to the account allows:
- Quickly validate your application
- Demonstrates your true ability to pay. An interesting alternative for your credit score.
Access to the account does not allow:
- Access to your money
- Share your banking transactions
- A permanent connection to the account.
It should be clarified that landlords only see the final result of a complete compilation of our database. This means that, at Trustii, we guarantee the security of the information provided; likewise, we try to show accurate and precise results that will help both the landlord and the tenant to know the level of compatibility for renting a property.
If you want to learn more about how Trustii works and open banking to facilitate the process of renting a property, then contact us at [email protected]