RealRates has launched a new affordability checking service, RealCheck, using Open Banking data to enable lenders to make more accurate real-time credit decisions on consumers in the post-COVID-19 climate.
 
RealCheck uses bank data to help consumers understand what they can afford to borrow, and then access accurate loan rates appropriate to a customers’ circumstances at that time.

Lenders can accurately assess a customer’s risk, by using up-to-date bank data, rather than traditional credit scores.
 
RealRates managing director, Rob Kenley, suggested the RealCheck tool has been launched to help “take the burden of proof away” for both the consumer and the lender.
 
“The economy has changed dramatically over a matter of months, with credit risk models built on bureau data and traditional risk scores becoming increasingly obsolete,” he said. “In addition, information around how consumers have used credit in the past offers less and less insight when it comes to predicting good and bad outcomes for the future.”
 
“The notion that lenders are somehow given ‘an idea’ of how suitable a person is for credit is no longer acceptable – in the current economic climate they need rock solid proof.
 
“Open Banking has been touted as the next big thing for loan decisioning in the UK and the Coronavirus pandemic looks set to have moved things on more quickly than perhaps was first envisaged and we are delighted to be one of the first to market.”

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