The collaboration is part of BNY Mellon’s Ascent Program, which aims to identify and collaborate with exceptional technology companies offering innovative solutions for the financial industry, the companies said in a Wednesday (Jan. 17) press release.
During a proof-of-concept phase, Obligo and BNY Mellon successfully validated Obligo’s ability to integrate into core banking services, according to the release. This integration allows Obligo to provide its suite of security deposit solutions directly from its banking portal.
“By being part of BNY Mellon’s Ascent Program, we have accelerated and strengthened our ability to collaborate with key financial institutions,” Roey Dor, CEO and co-founder of Obligo, said in the release.
Obligo’s product suite offers an alternative to traditional security deposits, per the release. The company deploys financial technology to build trust between renters and landlords. The company uses bank-issued letters of credit supported by Wells Fargo and leverages open banking and artificial intelligence (AI) to determine renters’ eligibility to rent deposit-free.
These solutions enable landlords and property managers to offer a streamlined rental experience while maintaining full protection and lowering overhead costs, the release said. They allow renters to choose whether to keep their security deposit and use it for other purposes such as saving, investing or spending. This flexibility appeals to renters and provides an appealing amenity for landlords.
Obligo’s deposit-free integration can be easily embedded in property management and financial services software, offering scalable application programming interface (API) architectures and customer service, according to the release.
“We believe in innovating through collaboration and look forward to continuing to support Obligo in the security deposit management solutions space,” Fabian Khoshbakht, global head of client insight an innovation for Treasury Services at BNY Mellon, said in the release.
Security deposits often serve as a pain point for not only new tenants but also for people who manage apartments, Omri Dor, chief operating officer and co-founder at Obligo, told PYMNTS’ Karen Webster in an interview posted in 2018.
“The technology is there,” Dor said. “There’s a better way to do this.”