According to Consents Online, which worked with HSBC to launch its Open Banking support, there has been significant interest from the main broker firms in utilising the data.
Consents Online commercial director Emma Steely told Mortgage Solutions that she was working with mortgage brokers trying to figure out what they can do to package up applications quicker.
This would involve broker software plugging in to the customer Open Banking data to assess their affordability before submitting an application to the lender.
“In terms of efficiency in the mortgage space, using the data works,” Steely said.
“For the brokers there’s an element of wanting to go for it but there’s kind of a chicken and the egg – they want the lenders to be on board with it as well.
“But everyone is very curious and I definitely expect something within the next six months from the brokers.”
Heavily manual process
Steely added that the major banks have worked “incredibly hard” to be get their Application Programming Interface (API) connections completed and that it was still very early days.
However, she noted there has been a lot of interest in and around Open Banking with mainstream and specialist mortgage lenders very keen on using it to verify income.
“It’s a heavily manual process at the moment going through and doing affordability so our dashboard has piqued interest, but we’re still waiting for a big first move into that area,” Steely continued.
“HSBC in time will be moving [the technology] into mortgages, but that’ll be something which happens in the next 12 to 18 months.
“They absolutely wanted to be the first tier one bank to have an Open Banking offering, so I would like to think that some of the advice firms would like to replicate that in the mortgage space,” she added.