Lettings in a box is a UK-based referencing company formed by lawyers and insurance specialists. The business offers a platform for tenant and guarantor referencing. In order to ensure that the risks of default and fraud are kept to a minimum, Lettings in a box uses a hybrid of technology, artificial intelligence (AI), and human decision-making. The platform facilitates all the required procedures between landlords and tenants, including document, employment and identity verification, credit checks, and landlord authentication.
In addition to referencing processes, Lettings in a box offers their customers a wide range of insurance policies to better protect their users, such as deposit replacement, rent guarantee, tenant liability, and home emergency.
Technology such as Open Banking and open payroll have become more important in the decision-making process since fraudulent reference requests have increased to about 2% nationwide in the UK. The integration with Nordigen enables Lettings in a box to access financial data directly from clients’ business bank accounts for accurate, real-time tenant screening procedures.
Open Banking allows a bank to share a snapshot of their clients’ financial information with the landlords instantly and securely. It’s a one-time access authorisation that ends once the checks are complete.
Open Banking is also changing real estate on a global level. Now tenants, especially those without a credit history, will be able to qualify to rent property. Also, social mobility across different countries is supported through Open Banking, since tenants no longer need to open country-specific bank accounts.
According to Nordigen, real estate investment opportunities have also increased thanks to blockchain technology and Open Banking. The technology uses real estate tokens representing shares in individual real estate assets available for investment and makes trading easier and more transparent.
Regarding home buying, Open Banking makes it easier and more transparent. The advances in digital technology have resulted in improvements in the mortgage application process. The adoption of open banking helps to verify income, speed up identity confirmation, and customer onboarding, and even helps with credit decisions.
This is not Nordigen’s first step into real estate. In September 2022, Noridgen partnered with Quota to improve their client screening and scoring mechanism. Quota declared that it is using Nordigen's Open Banking tools to improve the information the company has about tenants, including some of their financial insights.
With a wide bank coverage in Spain and Europe, close to 95%, most clients can select Open Banking as their preferred method to validate their information, and thus Quota gains access to this detailed source of data, which it plans to use to further improve its models and scoring algorithms. The Application Programming Interface (API) calls were reportedly quickly adopted by the company’s tech team to extract the data from tenants, with clear and detailed documentation. Thanks to the regular updates implemented by Nordigen, Quota can gain access to new banks and improvements continuously.
Nordigen believes that Quota’s service makes renting easier for landlords and agents while removing financial barriers for tenants. Open Banking provides opportunities to democratise finance and the company can help Quota improve their service.
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