Yolt Technology Services (YTS) has announced the launch of an open banking-powered tool to improve affordability checks.

The ‘Cashflow Analyser’ is powered by YTS’s Account Information Services (AIS), which gives credit underwriters deeper insights into the cashflow of credit applicants and customers to streamline and simplify affordability assessment processes.

YTS highlighted that the launch of the tool comes at a time when lenders are facing “unprecedented” demand for credit due to uncertain economic conditions, as well as the increased risk exposure brought on by the COVID-19 pandemic.

Based on open banking technology, the tool is able to give both a real time, and historic indication of affordability, based on transactional data. YTS also suggested that it presents a unique solution to businesses who may have experienced fluctuating sales and revenue due to the impact of the pandemic, and therefore deemed not eligible for various forms of credit.

The tool is expected to save both the lender and customer time and eradicate the need for downloading and sending historical bank statements.

YTS chief business officer, Leon Muis, commented: “The COVID-19 pandemic continues to present huge challenges for UK lenders and SMEs alike, with surges in demand for credit, coupled with skewed data when it comes to affordability assessments.

“Our AIS-powered Cashflow Analyser is a huge evolution of the traditional affordability assessment process, which has needed an injection of innovation for some time, to enable lenders to make faster and better informed decisions and customers to ultimately benefit.”

YTS also noted that its Cashflow Analyser will eliminate the risk of fraud in the transfer of financially sensitive data.

“Consent is at the heart of the Cashflow Analyser, with applicants able to opt-out of sharing their data with a lender or leasing agent, whilst those who are happy to proceed will spend less time waiting for a credit decision,” Muis added.

“Our AIS services have already delivered value in other areas of the lending market, so the Cashflow Analyser is another step to helping to support the COVID-19 recovery and maximise the potential of open banking across financial services.”

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