New technology to speed up loan applications

Veda has partnered with MOGO to create MOGObankconnect – a real-time verification tool for financial institutions designed to speed up the loan application process and reduce paperwork.

According to Veda, MOGObankconnect will make it easier for it to deliver credit histories and identification checks, and provide financial institutions with a clearer picture of an applicant’s financial circumstances to facilitate better real-time lending decisions.

“The process of inquiring into and gaining an understanding of customers’ income and expenditure can be time-consuming, costly and often unreliable, which has created ongoing headaches for lenders,” Veda said.

“This solution will provide lenders with an automated and streamlined mechanism to help mitigate the increased pressure on financial institutions to comply with responsible lending obligations, such as income and expense checking.”

MOGObankconnect will capture information such as an account holder’s name, address, account number and BSB and 90 days’ worth of transaction histories, as well as noting the balance on all active accounts with a financial institution.

The information is encrypted at source and delivered securely, and does not require the customer to reveal their passwords or other secure data with anyone but their bank.

While the solution is customer-driven, it is not customer-controlled. In order to combat tampering, the consumer cannot view or edit their results.

Lenders can use MOGObankconnect as a software service which can either be integrated into an online application process or offered via an online dashboard.

Tommy Mermelshtayn, Veda’s new markets and strategy manager, said the new partnership between Veda and MOGO will be a win-win for financial institutions and consumers.

“From a lender’s perspective, MOGObankconnect offers a secure, swift verification process that reduces fraud and cuts out manual handling costs,” Mr Mermelshtayn said.

“For consumers, it means enhanced customer experience, quicker outcomes and improved security with the knowledge their personal details won’t be passed onto a third party.”