Will the current lender be prompted to go into 'retention' mode when Open Banking is used?

Key Takeaways for Brokers:

Using Open Banking does not trigger a notification to current lenders.
Open Banking data retrieval has multiple uses beyond loan applications.
Open Banking can speed up the refinancing process.

This ensures that 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 Notified

The current lender will not be automatically made aware when Clients use their Consumer Data Right to retrieve and share their Open Banking data.

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.

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