Envestnet | Yodlee. The company bills itself as "a leading data aggregation and data analytics platform for digital financial services," and it has "announced the launch of its Australia and New Zealand-specific responsible lending product, Envestnet | Yodlee Credit Accelerator."
We're told the offering "will enable financial service providers to access quick and accurate consumer data in order to make educated lending decisions."
As Envestnet | Yodlee reminds us, "today’s credit evaluation process is manual, subject to fraud, prone to use of outdated banking statements, leading to high operational costs and inaccurate reports.
"For Australian and New Zealand 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 have children, regularly eat out, pay their bills on time or pay large amounts of interest on their credit card."
Supported by Envestnet | Yodlee’s core market-leading data aggregation and machine learning capabilities, the company explains that "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."
For the consumer, Envestnet | Yodlee states the technology’s "automated and easy financial data retrieval will eliminate the need to submit paper statements.
"It will also increase confidence in the accuracy of loan decisions, knowing lenders can see their full financial picture. Furthermore, the reports generated by Envestnet | Yodlee’s Credit Accelerator will increase the speed at which a loan can be received, as credit and lending decisions can be fast-tracked with this easily accessible, complete financial picture.
"Until now, getting a complete understanding of an applicant’s spending and income history to meet Responsible Lending guidelines has taken weeks, even months. Envestnet | Yodlee’s Credit Accelerator can pull and present data reports in less than ten minutes."
Tim Poskitt, Country Manager, Australia and New Zealand at Envestnet | Yodlee said: “The responsible lending landscape in Australia and New Zealand is in a moment of potential transition with the government proposing to remove responsible lending obligations (RLOs) to fuel economic growth in the wake of COVID-19.
"Therefore, the need to use technology and data to help make accurate, insightful decisions has never been higher. This new technology gives considerable power to both financial service providers and consumers alike as they can be safe in the knowledge that accurate decisions are being made," concluded Poskitt.
Envestnet |Yodlee reminds us it is "a globally trusted data aggregator with thousands of customers around the world, including 15 of the 20 largest U.S. banks. It has held an office in Australia for over a decade and is actively engaged with ACCC and Open Banking. It’s compliant with the highest level of local and international infosec standards, and is the partner of choice for handling sensitive consumer financial data in Australia and around the world."