Mar 22, 2021: Open Banking Mortgages w/ Mojo Mortgages

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 simplifying getting a mortgage, and an excerpt from our interview with Vedanarayanan Vedantham, SME & Startup Business Head of Razorpay, where he gave us a rundown of the Fintech space in India.

Mortgage1

Our Current Coverage

We track 2,782 banks providing Open Banking services! (+14 from last week!)

1,020 APIs currently tracked on our platform! (+5)

404 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 (Mar 16th to Mar 22nd):

We initiated coverage and provided Open Banking API information for:

  • Canadian Western Bank: Operating as CWB Financial Group, is a Canadian bank based in Edmonton, Alberta. The bank serves clients both in Western Canada and in other provinces.
  • Deel: The first payroll platform for remote teams that connects localized compliance and payments in one system of record and automates everything.
  • Silicon Valley Bank: A U.S. based high-tech commercial bank. The bank has helped fund more than 30,000 start-ups.
  • Sutton Bank: they strive to help customers reach their financial goals while aiming to be the top bank of choice within the communities they serve.
  • Tomo Credit: Is the next generation of credit card catered to young adults, students and immigrants looking to build a better financial future in the U.S.
  • • Biggest Publicly Available TPP Registry in the Industry! 🚀🚀🚀
  • • And many more!

We continue to cover over 35 aggregators!


Open Banking Use Case Spotlight: Mortgages w/ Mojo Mortgages

For most people, getting a mortgage is necessary to complete the biggest purchase of their lives, their home. And while it sounds simple, anyone who has dealt with completing a mortgage application can tell you that it is a stressful affair that complicates the house-hunting process. Between the endless bank statements, proof of income, and getting an appraisal on the property for the lender, it’s a process that is ripe for disrupting with Open Banking, and Mojo Mortgages teamed up with Credit Kudos to do precisely that.

There are many factors that lenders and brokers must consider when assessing the creditworthiness of a borrower. Still, it is often the case that the borrower doesn’t have access to this information, nor do they know where the weak parts of their credit history are. If they get accepted, they won’t give it a second thought, but if declined, they’ll get a vague reason as to why and little guidance on how to improve.

By integrating Open Banking data into the mortgage application, the lender can get a much clearer picture of what is truly affordable for the borrower. In turn, the borrower can have a much easier time filling out the application when all the data relevant to the application is easy to retrieve via secure API from the borrower’s bank accounts. Consequently, if the borrower gets denied, they can receive personalized advice on how to improve their credit standings (e.g., pay off credit cards, put more money in the savings account, close unused credit lines, etc.).

What’s the key takeaway…

The mortgage approval process is cumbersome and ripe for disruption. By using Open Banking, brokers like Mojo Mortgages pairing up with credit scoring companies like Credit Kudos have the opportunity to make the application for the biggest purchase of someone’s life as easy as getting a new credit card and increasing financial literacy of the borrow in the process.


FinTech in India

On this week’s entry in the Challenger series, Vedanarayanan Vedantham, SME & Startup Business Head of Razorpay gave us a rundown of the Fintech space in India.

Veda

How would you say the evolution of the Indian Fintech market is different to the broader developed world?

There is still a lot of grey around topics like Neo Banking which is better understood and regulated in the developed market. Crypto, again, is a huge opportunity area but in India, we are treading with caution. Having said that, we have come a long way compared to where we were 5 years ago. Paraphrasing a famous Rajinikanth line – “We might have come late, but have come latest!”

What are your views on Open Banking and open finance in general? Anything specific to India?

The success of UPI and the growth of applications like Google Pay & PhonePe in India show the potential for Open Banking and the need for decentralizing banking. Open Finance however is a different animal, while there has been huge growth of several 3rd party lending applications, the problems in India around some of these lending providers especially in light of recent economic downturns means that this might still take a few more years to evolve.

What sectors of Fintech are you most excited for in 2021 and beyond? Any local companies / emerging gems that really stand out to you?

Neo Banking is a very exciting space and there are enough companies including Razorpay that are looking to inflect this space. Fampay is another interesting one to watch out for as they try and build a NeoBank for teenagers.

To read the full interview with Vedanarayanan, please visit the Open Banking Tracker Blog!


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Have a great week and stay safe!

The Banq team

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