TenantPass, Open Banking and why it’s useful
Open Banking is another financial sector that has rapidly become global in recent years. This digital platform, created a few years ago, also offers TenantPass users access to completely new products. As Open Banking provides secure access to financial information, it has the potential to change the payment process in the rental market in an extremely important and positive way.
Thanks to its success in the mortgage market, Open Banking has also begun to affect the rental economy, allowing both real estate agencies and property owners to use Internet banking without having to process payments manually. Open Banking makes the rental market much more efficient by creating a smooth process for dealing with agents, landlords and tenants.
Smart people in the business have understood, that we must rethink the basis of how the validation of tenants is processed. The employer’s statement or some contract form doesn’t give the accurate picture. And it’s also difficult or psychologically hard for some potentially good tenants to pay deposit equal to three month’s rent for example. Of course there’s nothing one can do if the tenant burns the house down or kills the neighbour unwillingly, but everybody understands that’s not the case. Mostly it’s all about simple things like keeping it clean and paying the rent in time, i.e., it’s about quick, effortless and affordable validation of unknown people who are going to populate your property for agreed time on agreed terms.
Open Banking is a long step away from faxes, telephone calls and tedious controls. Tenants can now connect TenantPass to their bank accounts, giving the necessary party, such as an agency or landlord, access to the prescribed data. For agents and landlords, Open Banking enables automated payments and real-time payment management, as well as a faster and smoother referral process.
Open Banking uses fast and highly secure data transfer through the application’s programming interface (API), which does not require tenants to share their login information with the application, but allows users to control the data to be shared. The transfer of data in this way can only be allowed by the user himself and cannot take place without his consent.
Open banking returns secure data protection to the tenant, allowing them to allow third parties, such as budget and payment applications, to interact with their online banking accounts. From the point of view of the agent or the landlord, this gives a more accurate overview of the tenant’s solvency.
In this way, TenantPass can offer its customers the most realistic information about potential tenants. At the same time, tenants will have the opportunity to express a wish to pay a larger than usual part of their income as rent, if, for example, he or she really likes the location, design, garden, view, scenery etc. It is now up to the owner to decide – whether to take less money from someone with greater solvency, or vice versa.
Today, there is no doubt that Open Banking can dramatically improve the process of communication between landlords and tenants, eliminating issues related to access to and sharing of financial data, in particular problems with speed, but also security. So there is no need to exchange documents or human actions during the rental process any more and of course TenantPass is GDPR and PSD2 compliant.
TenantPass platform allows apartment owners and brokers to manage 4-5 times more tenants because it is designed to be simple and straightforward. However, this means greater efficiency for the platform user and thus higher profits.As the rental sector grows rapidly after the pandemic, we expect the service, that TenantPass offers, to meet your needs already in the nearest future. So all you have to do is book a demo on our website!