FinTech partnership brings open banking to credit unions

DirectID and Constant Partner to enhance digital loan servicing for banks and credit unions with open banking.
Published on
August 24, 2021
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DirectID, a global credit risk platform, today announced that it has partnered with Constant, a fast-growing provider of digitized, self-service technologies for banks and credit unions, to transform digital loan servicing and loss mitigation for banks and credit unions across the globe. Their integrated solution will enable borrowers to self-serve for loan management tasks that usually require agent assistance. In addition, through the use of Open Banking, it will provide an accurate picture of the borrower’s financial situation and risk level so their financial institution can provide  timely, hyper-personalized support or product offers.

Despite the digitization of the front office, loan servicing and loss mitigation processes are often still handled by people in the middle and back office who rely on manual, paper-based processes and green screen technology. This can lead to a delay in response times, costly errors, lost files, and increased non-compliance risk. 

As consumer protection efforts increase, the need for efficiency, flexibility and openness between previously disparate systems and processes across the lifecycle of a loan is more important than ever. Together, Constant and DirectID leverage powerful insights from real-time banking data and incorporate that information into self-serve features, allowing for accurate information and thoughtful decisions around managing repayment of consumer debt or new, timely product offers - ultimately transforming the borrower’s journey.

Catherine York Powers, CEO of Constant, said:

With an increasing number of borrowers demanding faster turnaround, servicers need to review and refresh their strategies for managing borrower interactions and empower consumers to self-serve wherever possible. Partnering with DirectID and its open banking platform means we can offer our mutual clients a fully integrated digital, yet still human-centric ecosystem, and ensure their differentiators shine across all channels, physical and digital.

In order to explore and expand the use cases of Open Banking data in loan servicing and debt management, DirectID and Constant will work with five financial institutions in the US in a white-glove partnership program. The program will run for 12 months and includes discounted implementation and subscription fees of the Constant Digital Servicing Portal, as well as free consultation hours.

James Varga, CEO and Founder of DirectID, said:

As we continue to grow our reach and capability, having a trusted set of partners is critical to our future success. We are delighted to have signed this agreement with Constant. As a global credit risk insights provider, redefining the traditional credit risk lifecycle is our global mission. By partnering with Constant we have an opportunity to transform digital loan servicing and loss mitigation for credit unions and banks globally. We’re really excited about the pilot solution and can’t wait to deliver the benefits of Open Banking to credit unions through their existing online banking experience.

About DirectID

DirectID is a Global Credit Risk Platform that is redefining the industry for both lenders and their consumers. 

By leveraging Open Finance and bank statement data, DirectID helps lenders understand their customers throughout the credit risk lifecycle, from onboarding through to collections & recoveries.

Today DirectID powers some of the world's biggest brands from banking, consumer and SME lending through to the gig economy, gambling and others. 

DirectID’s Platform provides global access to bank data through over 13,000+ connections across 65 countries supporting access to over 1.5bn people through one simple integration. The insights provide solutions to common lending questions such as affordability, income verification, expense categorisation, cash flow, emerging financial distress and more, and are all available directly or through the Platform itself.

The business is authorised by the FCA to provide AISP (Account Information Service Provider) services within the UK market. 

Visit direct.id for more information.

About Constant

Constant, a fintech founded in 2015, is transforming the outdated business of getting debt repaid by automating manual loan management tasks and empowering borrowers to self-serve. Constant modernizes loan servicing and loss mitigation with interactive, digital solutions that enable borrowers to better understand, manage and pay back their debts. Loan servicers are able to reduce costs by almost half and drive down errors, and compliance risk while improving customer experiences - without having to change their core systems. 

Media Contacts

Liam Thomson,  liam.thomson@direct.id

Mary Beltrante, mbeltrante@constant.ai

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Affordability

Assess how much your customer can afford to repay. Use enriched data to identify income, and fixed vs flexibile spend.

Affordability

Assess how much your customer can afford to repay. Use enriched data to identify income, and fixed vs flexibile spend.

Income verification

Verify your customer's income across all income streams, whether it's salaried wages, freelance earnings or benefits.

Categorisation & classification

Cut through the noise of a bank statement and understand how and where your customers spend their money.

Emerging financial distress

Identify emerging financial distress to enable early intervention before your customer defaults.

SME financial health

See the balance trend of an SME’s accounts with a view on income, stability and fluctuations. View the money a business earns, spends and saves on a regular basis.

What our customers say

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DirectID began working with Target at the beginning of 2020 to provide open banking data for their new Mortgage Hub. It is the first digital mortgage platform to be designed from the ground up, and the first to use open banking data as the backbone for customer experience.

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Automotive financing

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DirectID began working with Target at the beginning of 2020 to provide open banking data for their new Mortgage Hub. It is the first digital mortgage platform to be designed from the ground up, and the first to use open banking data as the backbone for customer experience.

Shieldpay

Multi-award winning payment platform. Designed for highly secure & efficient transactions. Trusted by over 100 law firms, lenders and professional services.

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DirectID began working with Target at the beginning of 2020 to provide open banking data for their new Mortgage Hub. It is the first digital mortgage platform to be designed from the ground up, and the first to use open banking data as the backbone for customer experience.

Target Group

A Tech Mahindra company and a leading business services provider in lending, investments and insurance, managing over £25bn+ assets.

Testimonials - Fintech X Webflow Template

DirectID began working with Target at the beginning of 2020 to provide open banking data for their new Mortgage Hub. It is the first digital mortgage platform to be designed from the ground up, and the first to use open banking data as the backbone for customer experience.

Best Egg

Consumer-lending platform developed by Marlette Holdings, Inc.

Testimonials - Fintech X Webflow Template

DirectID began working with Target at the beginning of 2020 to provide open banking data for their new Mortgage Hub. It is the first digital mortgage platform to be designed from the ground up, and the first to use open banking data as the backbone for customer experience.

Dana

A lending as a service provider using open banking to strengthen their credit scoring engine

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Frequently asked questions

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01

What is open banking and how does it work?

Open banking is the practice that allows people and businesses to share up to 12 months of transaction data. DirectID is regulated by the Financial Conduct Authority as an Account Information Service Provider (AISP) - the intermediary who safely facilitate this process.

02

What is transaction categorisation?

Transaction categorisation is the process of adding context to raw transaction data. The process gives you an understanding of what your customers' spend their money  and where.

03

How does bank account verification work?

Using the bank account verification API, DirectID matches the details provided from your customer to those on their account. We apply a set of sophisticated algorithms and rules to verify the name, and then tell you what does and does not match.

04

How do you verify income with open banking?

After a customer shares their data, DirectID identify recurring credits to the account and group these. Using an algorithm we identify the monthly income for each income stream. We then return the calculated income and confidence score to you.

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