HNW Lending is considering a move into open banking in order to provide better underwriting services to borrowers.
Chief executive Ben Shaw said the peer-to-peer lending platform is looking at the data-sharing initiative to see more information from borrowers in order to better assess them.
Read more: HNW Lending achieves record profit in 2021
“Open banking from what I understand offers the opportunity to look at the bank accounts of borrowers to see a bit better what payments are there, and if they have a good track record,” he said. “So it might help make a more informed decision particularly as to whether they can service your loan.”
Shaw said that HNW Lending has not written as many deals this year as it did in 2021, and has only managed to meet investor demand, as the bridging sector has been very competitive with many lenders offering cheap money.
He said that he expects to see downward pressure on the property market as a result of inflation, the cost-of-living crisis and rising interest rates.
“Lenders need to be aware of this risk given inflation and the inevitable knock-on to other parts of the economy,” Shaw said.