Open Banking celebrated its first birthday this year. While many expected it to go off with more of bang, the impact of Open Banking appears to have been somewhat muted. But why? Access to real-time financial data has the potential to transform the mortgage journey – not just for customers, but all parties involved in the process. Our CEO, Conor Murphy, looks at its effects so far on the mortgage market.

Open Banking has allowed banks to unlock value for their customers. The PSD2 regulation had already initiated this journey in Europe, but Open Banking has really brought cross-industry customer journeys to life. However, opening up access to data is just one element of Open Banking. Customers are now able to benefit from a banking experience that’s tailored to them.

Open Banking is a game changer where mortgages are concerned. Tasks like supplying printed statements can be a cumbersome process for customers and lenders alike, but Open Banking provides a seamless, digital alternative which is likely to radically reduce decision times and improve customer outcomes.

Open Banking has the potential to creates end-to-end solutions that combine sophisticated algorithms, lender criteria, CRM systems and APIs to deliver a frictionless mortgage journey. The firms who stay ahead of developments and invest in the right technology are most likely to reap the rewards.

Open Banking is about giving the consumer the power. For a start, it allows people to provide their bank transaction data to lenders instantly, which reduces the time it takes to process a mortgage. This same information can be used to provide tailored financial products and assess affordability and other borrower characteristics.

For lenders, it makes banking even smarter by accessing deeper layers of consumer data and insights. Having this access allows lenders to make behavioural inferences within the application and build more predictive, consumer-friendly and personal services.

Open Banking is going to drive the biggest change the industry has seen in years. Its success will rely on ensuring all lenders – not just the High Street banks – get on board. As well as helping lenders and borrowers, Open Banking can free brokers from the chains of manual searching, administration and data entry to focus on what they do best: giving advice and serving customers.