Centrix upgrade to make loan applications faster and easier

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Photo: RNZ / Rebekah Parsons-King

Credit bureau Centrix is stepping up collection of financial data, which will make it faster and easier for consumers to complete loan applications.

Centrix will use Envestnet | Yodlee to deliver its digital financial services, using an open banking framework, which is currently under development by Payments New Zealand.

The service will help Centrix get quick access to transaction data directly from the borrower’s bank account.

The information will make it easier to complete debt servicing and affordability checks, with real-time data based on actual income and expenditure, rather than self-reported estimates or proxies.

Centrix said the service will deliver benefits to borrowers and lenders by saving time and hassle when completing loan applications.

It would also make it easier for lenders to remain compliant with consumer protections legislated by the Credit Contracts and Consumer Finance Act, which required lenders to determine the affordability and suitability of a loan.

“Centrix can improve its credit scoring to help lenders better understand their risk and manage their cash flows,” chief operating officer Monika Lacey said.

“We’ll also be able to improve our fraud and transaction monitoring tools for additional compliance benefits.”