The Asset Exchange, through its car sales arm the Car Loan Center, sells cars and provides loan financing to purchasers who may have a poor credit history and are unable to get a car loan from banks. Gareth Noonan, Chairman of the Asset Exchange, explains how Open Banking will affect his business:
How big a role does technology play in your business?
Technology is very important to us. We employ technology to acquire customers, underwrite their ability to repay our loan and to track the cars we sell under hire purchase contracts.
How does Open Banking affect Asset Exchange?
Open banking is a great opportunity for the Asset Exchange to improve and streamline our underwriting process. As we look to affordability for our customers we need access to their bank statements to determine what car they can afford.
Open Banking: Regulation or an opportunity?
Both. We need to work through the regulatory process to get access to the information that Open Banking can provide. The opportunity for us is to automate and streamline our underwriting process which is vital as we grow. We review credit information in the form of bank statements from thousands of potential customers. Right now we review scanned copies of bank statements which is a burdensome process. Doing it more efficiently using Open Banking technology will be important as we grow.
We’ve talked about the impact of Open Banking on your business, how about how it affects your customers?
It should allow us to more quickly determine whether our customers can afford to buy a car from us. We should be able to get them an answer in real time when they apply through our website.
What are the challenges that Open Banking presents to your business?
Finding the best way to access bank statements and protecting our customers data.