Proptech company Goodlord has struck a partnership with open banking provider TrueLayer, which it says will improve its functionality and service offering to letting agents, landlords and tenants.
Goodlord’s proprietary technology streamlines a range of lettings services, including deposits, contracts, compliance, tenant move-in assistance, insurance and referencing. The business says it has grown by 120% in the last 12 months.
Open Banking is a government-led initiative that enables consumers to share their banking data with businesses through a secure connection created by the banks themselves.
It follows an EU directive (‘PSD2’) implemented earlier this year aiming at opening up the banking industry. Open Banking is currently supported by eight of the largest nine UK high street banks and covers 90% of the population.
TrueLayer provides an interface between financial institutions and third-party applications over an API. This allows companies to capitalise on new open banking and PSD2 rules by providing secure, clear and simple access to banking infrastructure. Following PSD2, TrueLayer became one of the first UK companies to be authorised and registered as a payment institution by the Financial Conduct Authority.
To begin with, Goodlord is incorporating TrueLayer into its referencing solutions, providing participating tenants with an instant, hassle-free assessment of their financial situation.
Marvin Luksenberg, Goodlord’s head of referencing, said: “Tenant affordability assessments using the lettings industry’s traditional methods can take days, are intrusive, prone to fraud, and directly stand in the way of making the renting experience simple and stress-free.
“As a leading referencing provider, we are excited to offer this ground-breaking technology to tenants throughout the UK and to continue improving the rental experience by developing and investing in technology.”
Goodlord said its use of open banking will allow tenants to move into properties faster, while offering greater peace of mind to agents and landlords.