Consumer Lending: Younited Credit Teams Up with Linxo

Younited Credit partners with the account aggregation specialist Linxo on dematerialising and speeding up loan application processes. Borrowers may be granted a loan in a matter of hours, or even minutes, without having to provide any supporting documents.

Younited Credit users applying for a loan no longer have to send over data regarding their income (payslips, bank identification number). Upon user consent, the platform retrieves all required information from their bank accounts via Linxo’s APIs.

One the application form filled out (on PC or mobile), they are directed to a Web page inviting them to provide supporting documents. They may either upload a copy of their latest bank statement, or key in the connection IDs to their online banking portal. Relevant data is then extracted by Linxo (through their ACPR-approved Payment Institution Oxlin) and automatically sent over to Younited Credit securely and in real time.

This time-saving option is intended to streamline the application process since the platform can directly retrieve reliable, verified source data to assess customer profiles. Younited Credit is then able to automate and improve their scoring system while notifying borrowers of their decision in a matter of hours, or minutes, compared to 24 hours previously.

Comments – Open-Banking to automate data scoring processes

This service was first launched in Spain early this year and Younited Credit claims that 75% of their customers already adopted it on this market (vs 44% in May). In France, the use rates increased from 8% to 35% during the test phase after several customer processes were investigated. Younited Credit hopes this figure could soon reach 80%.

This PSD2-derived improvement provides alternative players with an overview of the data held by traditional banking institutions and allows them to refine their risk assessment processes and apply more relevant pricing scales. In partnership with Linxo, the lending platform aims for the instant credit market, like many other players worldwide (CashE, Mobikwik or ICICI Bank).

Agreements like this one are means for FinTechs to feature new solutions in line with consumers’ needs based on aggregation technologies. Younited Credit already has partnerships in place with Raisin, N26 and ConTe.