Tink Offers Lenders Real-Time Look at Loan Applicants’ Expenses

Tink, lending, loan applicants, expense check

Open banking platform Tink is launching a new product that gives lenders real-time access to applicants’ fixed and discretionary spending, allowing them to make faster and more accurate affordability assessments.

Expense Check from Tink will be introduced in the Nordics and the U.K. before a wider European launch, according to a Wednesday (Aug. 31) press release. The new solution complements Tink’s Income Check product released in January.

Learn more: Tink Intros Instant Income Verification Service for Banks

Income Check enables lenders to verify a person’s income using real-time data from their bank account, PYMNTS reported at the time. The tool uses facial recognition or a single-click verification to connect to a user’s bank account, where transactions are grouped by salary, pension, benefits and cash deposits.

Meanwhile, Expense Check factors the cost of living into future affordability to help lenders tighten risk assessments. The tool also allows for regular affordability reviews so lenders have clear, accurate insights.

“Having an up-to-date, holistic picture of someone’s financial situation is vital when it comes to making an accurate risk assessment,” said Tasha Chouhan, U.K. and Ireland banking lead at Tink. “Not only does Expense Check streamline the way lenders process data, it also heightens user experience, with applicants benefiting from a simple, automated application process that doesn’t require any paperwork — and brings near-instant results.

“At the same time, because access to data enables lenders to make more accurate affordability decisions, it can help to make financial services more accessible, particularly for those with fluctuating incomes or thin credit history.”

See also: Open Banking to Play Key Role in Accelerating Invisible Payments Trend

With record inflation and cost-of-living struggles, Tink’s affordability product offers lenders a way to gain real-time information about applicants’ affordability, with insight into categories including housing costs, loan payments, insurance, utilities and transportation. 

Applicants that allow lenders to get an accurate view of their situation can increase their access to finance, per the release, especially for those who struggle to prove their creditworthiness through more traditional checks.

For all PYMNTS EMEA coverage, subscribe to the daily EMEA Newsletter.