Open Banking Overview
Open Banking was set up by the UK Government to encourage more competition and innovation in the financial services sector. It allows you to manage the financial data your bank or building society generates from your bank account, so you can safely and securely use your own financial information when applying for credit. Further information about Open Banking is available from www.openbanking.org.uk.
How Open Banking works
You can use Open Banking to authorise your bank to securely share your financial history with regulated companies like MYJAR. If you don’t want to share, you don’t need to do anything, as Open Banking requires you to give your explicit consent.
The benefit of using Open Banking
MYJAR supports the use of Open Banking as it helps us make a more efficient and informed decision on our lending decision. It demonstrates a timelier view of creditworthiness, compared to traditional credit scores by using real, up-to-date financial data provided directly by you. By allowing MYJAR to view your bank or building society account transaction information, we can make a more informed lending decision. This will enable us to verify your income and outgoings to assess which loan term and amount will be most appropriate for you.
Using our Open Banking provider, MYJAR will assess what you can afford to borrow and the financial commitments you currently have. We want to determine how much you can borrow without negatively impacting your financial situation. Our mission is to present the most appropriate loan term and amount.
What MYJAR looks for from Open Banking transactional information?
To make sure you can afford to take out a MYJAR loan, we look at your transactional information. Therefore, we will analyse your current account data to understand your income and expenditure. This means ensuring your bills (household, mobile, subscriptions, rent, etc), your credit commitments (loans, credit cards, car finance, etc) and discretionary spending (restaurants, entertainment, travel) do not regularly exceed how much money you make in income. It also means understanding the frequency of overdraft usage and whether you earn enough income to cover your bills.
Your loan application with MYJAR using Open Banking
During your MYJAR loan application, our selected Open Banking third-party provider provides you with a secure portal, for requesting your consent and enables the secure connection to your bank or building society. Our Open Banking third-party provider will then provide MYJAR with your transactional information from your bank or building society for the permitted purpose of verifying your income, outgoings, and creditworthiness.
Our chosen Open Banking provider is Credit Kudos Limited who are authorised and regulated by the Financial Conduct Authority (ref. number 770345 and 795791) and registered and incorporated in England and Wales (company no. 09873335).
Credit Kudos registered office:
4 Bath Place,
Security of your information
Any data you submit via the secure portal will be encrypted and its usage tracked by our chosen provider as part of set Open Banking data security standards. MYJAR is responsible for the secure transmission of any shared personal data to the specially regulated third-party provider, for safely directing you to the portal and for the safe receipt and usage of your transaction information. You will not be required to share your banking password or login details with MYJAR. Once you have given your consent to share your bank account information on the portal you will be directed to your own bank or building society’s login page where you will enter your own login details directly.