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The new feature will help Connective brokers achieve fast pre-approvals and facilitate the safe transfer of client data.
Connective and NextGen have announced the launch of a new partnership that sees the technology solution provider’s Financial Passport feature made available to the aggregator’s entire broker network.
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Connective brokers are now able to access Financial Passport within the Mercury Nexus platform and directly to ApplyOnline®.
Powered by NextGen and open banking, Financial Passport is designed to facilitate the safe transfer of client data. It employs the government-regulated Consumer Data Right (CDR) framework and bypasses security risks typically associated with screen scraping technology.
Clients can complete data sharing in less than eight minutes (median time) and brokers are able to glean AI-generated insights from data.
Chin Hui Yeo, Connective chief technology officer, said the partnership would bring new value to the aggregator’s broker network.
“Our collaboration with NextGen bringing this exciting feature to Connective brokers aligns with our commitment to equip brokers with innovative tools and technology,” Yeo said.
“By offering brokers access to Financial Passport, enabled by open banking, we provide secure access to complete client data in real time, streamlining the approval process, and ultimately delivering greater value to clients.”
Virginia Stirling, Connective member and broker at Queensland-based brokerage Lomonti, said she was “very happy” with the feature so far.
“It is so easy to use, and our clients have embraced it,” Stirling said.
"It is simple to send the request to the client and the statements and summary information is stored in Mercury Nexus. It not only saves us time but also helps us ensure data integrity by obtaining bank statements through the secure system assisting with our compliance requirements.”
Financial services innovation
Speaking to The Adviser, NextGen chief customer officer Tony Carn said the tech solutions provider was excited to have worked so closely with Connective to bring the Financial Passport to their broker network.
Carn added one of the big advantages of open banking and the CDR is enabling consumers to have better access to their own data.
“It’s making all the data far easier to obtain. The ability to access it in real time and the ability to access it in a government-regulated regime ensures security of that data as well,” Carn said.
Carn also noted the benefits open banking can provide to lenders.
“One is the provenance of that data. When an application is provided to a lender, they have the option to say, ‘Well, the information you’ve provided me, tell me that it originated in open banking’. The provenance of that is accurate. It’s also tamper-proof, because it’s provided in an ecosystem where it cannot be corrupted,” Carn said.
“The second thing is about the currency of that data. When an application is submitted to a lender, that [data] can be current as at the time of submission. If you’re using it to verify income [for example], you’re not looking at a payslip which might be outside of your credit policy. It’s all real time data, as at the time of the application being submitted.”
Ultimately, the technology is moving towards cleaner transactions with minimal paperwork and less rework, Carn adds.
“This is an enormous cost saving opportunity to empower true straight through processing when [lenders] have a loan application, because of the verification of data, whether it’s assets, liabilities, income, interest rates, expiry dates. All of that information is verified as factual, and doesn't need to be sourced through different documents to make a risk assessment. It is a real game changer.”
[Related: How open banking, AI, and the CDR reset could impact brokers]
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