eCheck360 – Open banking and the transformation of consumer credit

What is Open banking and PSD2?

Open banking, also known as "open bank data”, describes the practice of banks sharing data with licensed third-party service providers. through the use of APIs (Application Programming Interfaces). Around the world, Open Banking is rapidly changing the way that financial institutions operate. Increased transparency, new product opportunities, safer payments and continuous innovation, are a result of banks sharing information in a secure, standardized format to authorized organizations. With Fintech companies having been on the forefront of the Open Banking movement in the past, traditional institutions have begun to seize the opportunities created by Open Banking. In order to be effective, open banking needs Strong Customer Authentication (SCA) and strict compliance with PSD2 regulations.

The Payment Service Directive (PSD2), which came into force on 13 January 2018, introduced new rules that initiated an era of open banking in the UK and Europe. For the first time, the consumers had the legal right to access their payment accounts, through third parties. With consumer consent, these third-party providers can access financial data or initiate payments. PSD2 specifies that consumers have the right to use any third-party provider for their online banking services.

As a result, banks are instructed to provide open APIs to allow software at one company to access payment account information and payment initiation from another. In other words, the transition to open banking means removing barriers between competitors as it requires banks to allow their account details and transactions to be shared with third parties through APIs.

The objective of open banking is to make consumers better informed and engaged in financial services, and help them shop more easily. In addition, open banking creates an enhanced banking experience, since it increases competition and product innovation in financial services.

What is eCheck360?

Considering all of the above, Infocredit Group has proceeded with launching its own platform, eCheck360, which is essentially a pan-European credit scoring platform through which we can provide you with a comprehensive view of your clients or vendors creditworthiness, affordability and financial behaviour.

Infocredit Group offers a complete set of consumer credit tools to organizations via its pan-European eCheck360 platform that will transform individual and business decisions. For individuals, eCheck360 can evaluate their creditworthiness and financial wellbeing based on up-to-date financial data provided by themselves. They can understand how creditors view an individual’s profile and what affects a creditor’s opinion when giving out loans. For example, if a credit score is low, you will know and proceed with corrective actions.

Businesses can benefit greatly from eCheck360 as well. The platform can be integrated to internal processes to provide accurate and valuable insights, thus enabling better decisions on an applicant’s credit requests. More specifically businesses gain access to the following: ?

? Credit Scoring Information - Obtain a statistical analysis on your client’s creditworthiness. Decide whether to proceed, extent or deny credit

? Income Verification - Comprehensive view of your client’s financial health and stability including income, salary, and available funds.

? Identify Verification - Validate your client’s ID documents within seconds using technology that combines video streaming with advance AI algorithms and is accessible internationally.

Currently, eCheck360 has access to more than 13 countries and over 70 banks and financial institutions internationally. We are constantly expanding to new markets since we realize that open banking is becoming part of the financial ecosystem worldwide, and the need for digitalization is higher than ever.

Use cases of eCheck360 – a solution for everyone??

? Financial institutions (commercial banks, forex, crypto) - When you apply for a new bank account, the bank will check information on your credit report to confirm your identity and to check your financial behaviour. It can then assess whether it’s worth having you onboard as a client. Crypto and Forex companies can use it for ID verification for fast and safe onboarding and for awareness regarding their clients.

? Leasing and microlending agencies - As part of the application process, providers will check information from your credit report – as well as from your application form, and from their own records if you’ve been a customer before. This helps them decide if you’re capable of making regular repayments, and whether you’re a reliable borrower.

? Recruitment Agencies - Depending on the type of job you’re applying for, certain prospective employers might ask to see some information from your credit report as part of their screening process (if for example you’re applying for a job where you’ll be handling large amounts of money).

? Utility and service companies – such as water and electricity providers – provide a form of credit, since they charge for something already provided. Therefore, they can start using open banking to know how to proceed with their clients (e.g. prepayment services).

? Telecommunications - Much like utility and service companies, telecommunication contractors may want to check your credit report before offering you a pay monthly deal as part of their contract terms.

? Real estate agencies - If you’re looking to rent property, the letting agent or landlord may ask to check basic information on your credit report. This can help them confirm your identity and decide if you’ll pay your rent on time.

? Insurance companies - When you apply for insurance, for example for your home or car, the insurance company may want to check your credit history to verify your identity and your affordability. In case you will pay monthly, the company might need to know your creditworthiness.

? iGaming industry - Instant ID verification for fast and safe onboarding (compared to long procedures of 4-5 days). Income verification, to comply with safer gambling regulations and set limits for the player.

For further details please visit: ?eCheck360 - Establish your credibility - Credit Score & Report