Zopa launches income verification tool using Open Banking data

ZOPA has launched an income verification tool that automatically pulls in customer data made available through Open Banking.

The tool verifies a customer’s income using transaction data from their bank, removing the need to manually upload documents.

The solution is provided by London fintech TrueLayer, which creates APIs for platforms to access data from financial services providers.

It aims to make the process of applying for a loan quicker and easier.

Read more: Four UK banks ready for Open Banking deadline

Zopa first revealed last month that it was intending to launch the tool as part of an initial foray into Open Banking, which mandates banks to share anonymised customer data with third parties.

Marie Steinthaler, head of new products at Zopa, said there has already been a “very promising uptake” from customers choosing to verify their income using this method.

“We look forward to creating an even better experience for our customers by making the most of Open Banking data, and we’re already working hard on our next set of innovative features,” she added.

Zopa revealed in December that it was planning to build its own Open Banking infrastructure to capitalise on the opportunities created by the new legislation, which came into effect in January.

At LendIt Europe last October, Zopa’s chief product officer Andrew Lawson heralded the new rules as “a really exciting opportunity” that could potentially broaden the company’s product offering.