12.06.2024

Open Banking: A revolution for your personal loan application

Open banking allows us to better serve you in your credit application. But what exactly is it?

 

Let's speak the truth ! 

You are right. So, open banking simply means "open banking" or, if you prefer, "connected banking".

Let us explain

This process greatly simplifies the credit application, making personal credit more accessible and personalized.

Thanks to an API, Application Programming Interface, your data can now be transferred between banks, financial intermediaries, insurers and other financial service providers.

A single interface to connect various programs used by various financial market participants.

 

What data

It varies

This can be data shared between banks and fintechs, for example. The location of bank branches, collection points, the services offered and of course, customer data.

In the context of a credit application, this may include account statements, bank transactions, any information that allows the lender to better analyze the consistency of the application in question.

 

What about the confidentiality of my data ?

Rest assured. This data can only be shared with your consent. In addition, the application of the "Data Protection Act" remains in force in all cases.

Not only do intermediaries have to take the necessary steps to store your data securely, but there are clear time and content limits to protect your rights.

 

That's all good, but how is it an advantage for me ?

Good question ! 

Today, centralized databases allow financial institutions to retrieve a set of data. This is in order to have the information necessary to process a loan application. 

The data concerned is sometimes incomplete, outdated or even erroneous. This is not the majority of cases, but it happens. 

Open banking, via an API, offers quick access to a more accurate set of data, more representative of the borrower's financial reality and therefore offers several advantages :

  • The one that concerns us all: inclusivity.
    Insufficient data when applying for credit leads to a refusal. Without it being justified, some of us are therefore unable to benefit from the necessary funds to carry out our projects. 
    With cross-functional access to complete, up-to-date and accurate financial data, everyone is put on an equal footing.

  • Justified decisions that protect everyone's interests. It is not only a question of facilitating access to credit but also of protecting the most vulnerable. As long as your ability to repay is accurately calculated, lenders are able to avoid the trap of over-indebtedness. This is both an ethical issue and a legal constraint imposed by the Consumer Credit Act.

  • Less time wasted because the exchange of data reduces the number of documents to be provided and therefore the administrative burden that often accompanies personal loan applications.
    There is no need to provide so many supporting documents because this information is now accessible to interested parties

  • Speed.
    We live in the world of immediacy. Waiting weeks or even days is a concept of the past. Today, open banking makes it possible to speed up the decision-making process by making it possible to respond almost immediately to your request.
      

 

Solvency !

Technology continues to make our lives easier, but let's be clear, taking out a loan is an approach that must be carefully thought out and evaluated. We mentioned the principle of repayment capacity, or solvency; It is a central element in your efforts.

The lending bank will pay particular attention to this

So weigh the pros and cons before submitting your application. You will be supported in this context, but make your calculations between income and expenses now. 

Is it the right time? Do you already have outstanding loans? Do you have enough room for manoeuvre? Have you taken into account life's hazards such as job loss or unexpected expenses ?

If your file is solid, if your financial situation is healthy, then yes, carry out your projects and opt for a simple, transparent and quick process. Opt for a credit partner who will be able to guide you and offer you the best conditions on the market! 

 

Simplicity !

Open banking, API, automated data access, transparency in the information provided... All of this is managed in a secure way that respects your personal data.

Not a bad approach and clearly a precursor of new methods of banking and financial collaborations in the future.

The revolution is underway, and new technologies will continue to advance the user experience

Think.

A single interface that allows you to access the terms and conditions of a set of banking providers, a set of services offered, a set of fees applied, updated interest rates or terms and conditions. 

After all, access to data is not just a way around. 

As much as lenders will be better able to make decisions about you; As much as you will also have a view of the quality and quantity of the services offered. 

In a few clicks, in record time... In all simplicity !

 

Your requirements, our values !

Milenia has always been at the forefront of technology and user experience. Simplicity is one of our founding values.

We can also mention "responsibility", "clarity" and "quality", values that fit perfectly in the spirit of fast, transparent, respectful and accurate access to your data. 

TAll this, so that you can go about your business and enjoy your moments of life with peace of mind knowing that your credit report is in good hands, knowing that you will have the best conditions, being reassured that the process will be quick, simple and easy. 

Our advisors are at your disposal

Our financing platform allows you to estimate your loan amount, the term, your monthly payments and the rate applied. 

Your application can be made entirely online if you wish. From sending documents to signing your contract electronically.

Within 24 hours, you have an answer and your money is paid to you right away. 

Milenia. By your side.

 



Loan illustration: loan of CHF 10'000. Effective annual interests rates between 4.9% and 11.95% over a 12 month period lead to total interests of between CHF 261.80 and CHF 624.80. Duration: 6-120 months; Maximum annual interest rate (including all loan handling costs) 11.95%. Loans approval are prohibited if they lead to excess debt for the consumer. (Art. 3 LCD)

 

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