As the fintech industry continues to grow with new ideas and technologies, companies are increasingly looking for collaboration from outside sources that can help improve things like user experience and user interface for their clients. Entities that use open banking work with companies on those offerings, making the onboarding process for new clients more efficient, and bringing more ease to the processes of sharing and analyzing customer data.
Open banking is becoming more commonplace
It allows financial service providers to have open access to a potential customer’s financial history with their consent, which gives those companies a much better understanding of their clients’ finances and spending habits when considering them for a loan or other service. In order to make use of everything open banking has to offer, many companies are increasingly looking for collaboration from outside sources like Kontomatik, which implement open banking tools to make the process of accessing that data easier and more efficient for both the clients who are sharing their banking history and the company requesting it.
One of the companies that’s had success thanks to the use of an open banking has been Creditstar, an international fintech which uses data analysis to provide short-term personal loans and complementary financial services to hundreds of thousands of customers. As one of the finalists for the 2021 Banking Tech Awards, Creditstar is a leader in the consumer finance industry, offering services in eight countries around Europe.
However, Creditstar was running into a problem that other companies know well. Onboarding clients and verifying their identity and financial information was a lengthy process that also posed an annoying challenge for the client. Rather than simply completing their financial verification online, clients had to exit the process and manually send their 1 Czech Crown verification payment outside the normal onboarding flow.
Turning a manual process into a quick online step
Creditstar was looking for an automatic process that would make onboarding seamless and more user-friendly for clients, while also making the step of verifying account and income information easier and faster on the company’s end. They also hoped to limit fraud attempts and categorize clients’ financial transactions to pave the way for a better analysis of each client and their financial abilities.
That’s where Kontomatik came in. With Kontomatik’s help, Creditstar was able to eliminate the manual procedure of customer identification, meaning the customer no longer had to leave Creditstar’s website, or get disrupted from the normal flow of onboarding. Kontomatik helped Creditstar integrate that verification right into Creditstar’s onboarding process, turning a lengthy step into one that took just a few seconds to complete online. The change importantly eliminated the need for the client to leave the process and make the 1 CZK verification payment.
The change is a financial boon for the company; the faster Creditstar can process a client’s application, the more likely that client is to follow through with the loan application process.
Thanks to Kontomatik’s transactional labeling service, Creditstar was also able to more reliably and efficiently assess a client’s income and solvency, thus keeping their portfolio desirable.