Apr 26, 2021: Auto Finance w/ Blue Motor Finance

Written by Dragos Cocosila

We have a lot to share this week as part of our passion to continue providing you with industry-leading information on the global Open Banking segment. This update will have the weekly additions to the Open Banking Tracker (Banks, APIs, TPPs, etc.), a look at how Open Banking is improving the auto financing industry.

Auto-Loans

Our Current Coverage

  • • We track 2,806 banks providing Open Banking services! (+4 from last week!)

  • • 1,024 APIs currently tracked on our platform!

  • • 434 TPPs in the ecosystem!

  • • 86 Global markets covered!

  • • 35+ Open Banking API Aggregators! (with more coming very soon...)

  • • PSD2 API & PSD2 Open Banking coverage!

  • • Track over 60+ data points for all Open Banking projects!

And we are growing on a continuous basis... 🚀🚀🚀

Developments (Apr 20th to Apr 26th):

We initiated coverage and provided Open Banking API information for:

  • Comerica Bank: focuses on relationships, and helping people and businesses be successful.

  • Idea Bank: Idea Bank Spółka Akcyjna was a bank in Poland, which began operations in 1991 and was taken over by Bank Pekao SA.

  • KiyanPay: Making Banking Social. Stay Tuned For A Finance Revolution. No hidden fees, no fuss. Just pure, straightforward banking.

  • Minna Bank: As Japan's first Digital Bank, Minna Bank's services are designed to cater to the needs and sensibilities of digital natives.

  • • Biggest Publicly Available TPP Registry in the Industry! 🚀🚀🚀

  • • And many more!

We continue to cover over 35 aggregators!


Open Banking Use Case Spotlight: Auto Finance w/ Blue Motor Finance

It is no secret that most car purchases today are done on credit. 2.4 million cars changed hands in the UK in 2018 alone, and 64% of these were used vehicles. Furthermore, auto dealers often double as the gatekeepers of that necessary lending program before a car buyer can get on the road. However, most still rely on a cumbersome credit application process where the buyer needs to bring in all their bank statements and get their traditional credit bureau checked. This process is ripe to be streamlined by Open Banking, and companies like Blue Motor Finance are doing just that.

Blue Motor Finance is a technology-focused lender that auto dealers can access to procure financing for a customer to complete the purchase of their next vehicle. Still, Blue stands out as one of the first auto-focused lenders to implement Open Banking into their credit decisioning process. Tiku Patel, the CEO of Blue Motor Finance, said that “by partnering with another fintech, we can harness Credit Kudos’ insights to get a better real-time picture of affordability and allow us to lend responsibly to even more people, including under-served segments.”

Implementing Open Banking into auto lending decisions creates value at every step in the vehicle purchasing process. Getting more people approved at a lower cost means that the dealers can move more inventory and the lenders benefit from reducing the overall risk of their loan portfolio.

The takeaway:

The significant advantage that an auto lender gains from using an Open Banking powered credit score is that it can contain much richer data about the customer without the need to rely solely on the borrower’s interaction with other lenders. It makes cheaper credit available to a larger percentage of the population that may have never access legacy credit and have little traditional credit to report, which means that more people can enjoy car ownership.


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Have a great week and stay safe!

The Banq team

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