Centrix, the credit bureau in New Zealand, is set to provide live bank data feeds to people of NZ in order to improve financial data for both lenders and borrowers. The initiative, supported by global data aggregator Envestnet | Yodlee, will offer robust transaction data, covering 95% of New Zealanders and most credit-active companies.
Envestnet | Yodlee's platform supports digital financial services worldwide through data aggregation and analytics. It is actively shaping New Zealand's burgeoning open banking sector and contributes significantly to Australia's Consumer Data Right space, the company states.
In partnership with Envestnet | Yodlee, Centrix will now be able to directly access transaction data from borrowers' bank accounts. The information will be used in accurate debt servicing and affordability checks, replacing the need for self-reported estimates or proxies. This permission-based approach could considerably streamline the loan application process for borrowers.
This change is a crucial part of Centrix's strategy to remain at the forefront of credit reporting and decision-making tools for lenders, brokers and landlords in New Zealand.
Direct access to bank data enables lenders to adhere to the heightened consumer protections enacted by the Credit Contracts and Consumer Finance Act, which obliges lenders to assess the affordability and appropriateness of a loan.
Monika Lacey, Chief Operating Officer at Centrix, expressed confidence in the benefits that this initiative would offer. She said, "Our clients will start to see some specific benefits coming through, such as a broad range of income and verification solutions, data and analytics to support new customer segments, and future-proofed lending that will harness open banking in New Zealand when that goes live."
Taner Uzelakcil, Director of Business Development A/NZ at Envestnet | Yodlee, also commented on the partnership, "We're looking forward to working with Centrix to go deep with data and deliver global open banking trends and insights as well as world-class products and services designed especially for the New Zealand market."
The move comes at a critical time for New Zealand's financial sector, as many households grapple with economic downturn, cost of living increases, and rising interest rates. More than ever, there is a compelling mutual requirement for lenders and borrowers to shield themselves from bad debt.
Ms Lacey added, "Our core mission is to help credit providers to monitor their risk and protect their cash flows. With the help of Envestnet | Yodlee, giving us access to thought leadership and global experience, as well as to bank transactions, Centrix can improve its credit scoring to help lenders better comprehend their risk and manage their cash flows. We'll also be able to enhance our fraud and transaction monitoring tools for added compliance benefits."