Responsible Lending Innovation

Responsible lending. It’s not a term that inspires visions of innovation and excitement in the financial ecosystem. If you’ve had the pleasure of applying for a significant loan, for example to purchase a vehicle or home, you know what the process can involve. Seemingly endless forms. Interrogation by loan officers. Waiting for days, or weeks, to hear a decision.

For all too long, lending responsibly has meant lending done slowly and painfully. Given credit is so vital to the Australian and New Zealand economies, as it is to economies the world over, we’ve often fought a battle between safe and fast. Safe, responsible, lending meant arduous processes and tough criteria. Fast lending conjured up pay-day lending, or worse.

The situation is changing. Nimble FinTechs and forward-thinking Financial Institutions have been developing and launching new solutions that provide quick lending solutions to consumers. Mortgages were flowing easily. Buy-now, Pay-later (BNPL) grew rapidly. There seems to be a lending solution for everyone, for anything.

But in a world facing much uncertainty, the fear is that these new credit solutions risk creating widespread financial hardship. This fear may drive intervention from regulators, and a loss of confidence from consumers. What must lenders do to continue to thrive, in a changing world?


Envestnet | Yodlee’s proven data aggregation facilities mean that acquiring a full picture of a borrower’s financial situation is no longer a time-consuming and labour-intensive process. Lenders can now allow applicants to authorise the aggregation of their information almost instantly, saving time on their end. Envestnet | Yodlee’s Credit Accelerator then provides a comprehensive report to the lender either as a PDF or data extract.


At the same time as aggregating and analysing a borrower’s financial situation, Account Verification instantly verifies account ownership. Pairing this with the complete view of the applicant’s financial situation puts a lender in a position to make a secure, informed decision. What’s more, it’s happening with the borrower’s financial wellness in mind.


Whether ready for Open Banking or waiting for it to become a reality, we’re here to equip FinTechs and Financial Institutions with deep, accurate financial data. By taking care to lend responsibly and quickly, economic and consumer wellness is protected. It’s with these conditions in place that we can realise wider, more complex use cases. Together with innovative companies and progressive regulators, financial data aggregation and intelligence creates a vibrant, competitive financial ecosystem. An ecosystem that embraces innovative lending solutions help consumers optimise their finances, while companies and the economy grows.