Will the current lender be prompted to go into 'retention' mode when Open Banking is used?
Key Takeaways for Brokers:
This ensures Clients have control over when and how their financial information is shared, they can explore options without prematurely alerting their current lenders. |
When Clients work with their Broker, you might be wondering if using Open Banking to share financial data will alert current lenders. Here's what you need to know:
Lenders Are Not Prompted to Start Retention Activities
The current lender will not automatically start retention activities when their Customer uses Open Banking to retrieve and share their financial information.
Data Retrieval for Multiple Purposes
Retrieving Open Banking data can be done for various reasons, such as using a Personal Finance Management (PFM) App or for pre-loan application assessment. It is not solely tied to loan applications.
Open Banking for Faster Refinancing
Open Banking is also beneficial for faster refinancing processes, such as FASTRefi. It allows for quicker and more efficient sharing of financial information with Brokers and potential new lenders.