Envestnet|Yodlee powers live bank data feeds for NZ’s Centrix

New Zealand-based credit bureau Centrix will be switching on live bank data feeds powered by Envestnet|Yodlee, in readiness for Open Banking.

With permission from the borrower, Centrix can now access transaction data directly from the borrower’s bank account, meaning that debt servicing and affordability checks will be based on actual income and expenditure, rather than having to rely on self-reported estimates.

Centrix’s account payment data and credit information covers 95% of New Zealanders, or four million individuals, many of whom are being affected by the country’s economic downturn, higher interest rates and the rising cost of living.

Monika Lacey, chief operating officer at Centrix, said: “Our clients will start to see some specific benefits coming through, such as a broad range of income and verification solutions, data and analytics to support new customer segments, and future-proofed lending that will harness Open Banking in New Zealand when that goes live.”

The partnership will also ensure that New Zealand’s lenders remain compliant with the enhanced consumer protections legislated by the Credit Contracts and Consumer Finance Act, which requires lenders to determine the affordability and suitability of a loan.

“With the help of Envestnet|Yodlee giving us access to thought leadership and global experience, as well as direct access to bank transactions, Centrix can improve its credit scoring to help lenders better understand their risk and manage their cash flows,” she added.

“We’re looking forward to working with Centrix to go deep with data and deliver global Open Banking trends and insights as well as world-class products and services designed especially for the New Zealand market,” said Taner Uzelakcil, director of business development A/NZ at Envestnet|Yodlee, which is an active and accredited Consumer Data Right participant in Australia.

Earlier this year, the ClearScore Group entered New Zealand, providing consumers there with a free credit report data app and website to enable “informed” financial decisions.

Meanwhile, in July, Bank of New Zealand (BNZ) revealed its plans to launch a ‘request to pay’ app in New Zealand, following an API agreement with fintech Volley.

Volley uses secure APIs to connect to BNZ to initiate payments from a customer’s account with their consent.