Veda offers MOGObankconnect for income versification

Veda has moved into the income verification business, contracting with financial software company Mogo to be the exclusive supplier of its MOGObankconnect product.

With the Australian Securities and Investments Commission expecting credit providers to undertake more rigorous income and spending checks on loan applicants, financial institutions are looking for tools that allow them to do more comprehensive credit assessments while also turning approvals around more quickly.

Veda's manager of new markets and strategy, Tommy Mermelshtayn, said Veda did not offer an income verification service before its deal with Mogo.

"We have been in the market with MOGObankconnect since December. We have customers using it and we have more in the pipeline," Mermelshtayn said.

When someone applies for credit, a lender using MOGObankconnect sends the applicant a link to an app. The applicant uses the link to provide the lender with access to their bank accounts so income can be verified.

MOGObankconnect encrypts the data so it can't be tampered with and formats it for the lender's loan processing system. Neither the lender nor Veda has the customer's account login, so they cannot access the account once the information required for the credit application has been downloaded.

Mermelshtayn said it was this aspect of MOGObankconnect that attracted Veda. "It is more compliant with privacy law than other systems on the market. It is the only one where the user does not share their banking credentials," he said.

He said the system would take the paper work out of credit applications and speed up approvals. Customers can put their details into the app in minutes and data can feed straight into the lender's credit approval system.