The Leaders Romans Group (LRG) is the latest large estate agency to embrace Open Banking-based tenant referencing.
This enables agents to scan a prospective tenant’s bank account transactions, if they give permission, via a tech platform, and divine their rent payment history including how much they rent they pay and whether their rent has been paid on time.
LRG is doing this via its existing tenant referencing platform The Lettings Hub (TLH), which it recently resigned to, partially because of its recently-introduced Open Banking capability, but also because it offers a ‘tenant passport’ for referencing as well.
Joanne Jackson (pictured), Group Lettings Operations Director for LRG, says, “We completed a market-wide tender process across multiple suppliers earlier this year, assessing several open banking solutions to find the best fit in terms of quality, speed and performance.
Vince Demilio, Sales Director for TLH, says: “We’ve launched multiple Open Banking options and have incorporated the data into our traditional and tenant owned Property Passport referencing products, for all our clients.
“Next on our development roadmap, we will be launching two more referencing products in January 2021.”
Demilo says this will include an online system to give tenants and letting agents full visibility of the referencing process and a ‘flip’ product that will enable agents to pass tenants with difficult referencing histories back to TLH to complete.
The Open Banking initiative was introduced following a 2015 EU initiative to force banks to enable consumers to share their bank account details. Third parties, like TLH, build platforms that then ‘plug into’ bank accounts via APIs.