With the release of the banking royal commission's final report, it is clear that responsible lending remains a key concern within the financial services industry. Basiq's Affordability API can ensure that lenders are carrying out efficient and responsible lending based on high-quality data.
In response to lending concerns banks have adopted more stringent serviceability assessments in compliance with existing consumer credit laws.
A significant factor in the tightening of loan assessments is the process of verification. According to the report, verification should take into account both income and expenditure and go beyond taking an applicant at their word.
This is especially as according to the Australian Financial Review:
"more borrowers are overestimating their incomes and underestimating their expenses when applying for a mortgage."
For banks, this involves updating serviceability calculators as well as increasing categorisation when it comes to an applicant’s expenditure.
Basiq is able to take this categorisation a step further with its Affordability report which combines assets, liabilities, income and categorised expenditure of applicants into one single view.
This offers an accurate and scalable alternative to manual credit decisioning based on actual bank transaction data.
To get started today reach out to learn more about our APIs, direct integration and our user interface controls which seamlessly drop into your current workflow.
Check out our API docs for the Affordability endpoints: https://api.basiq.io/reference#affordability and use our sandbox environment for free - contact us to have your API key activated.
What can you build with Basiq? Our partners use our powerful categorisation and enhancement engine in many different ways. Credit decisioning, pre-fill of fact finds for Financial Advisers, easier on-boarding of banking customers, targeted financial advice, balance checks before payments and much more!