Castlight Financial Lends CaaS to HSBC

HSBC UK and Castlight Financial team up to deliver the bank’s first open banking loan.

21:55 23 May 2018

Castlight Financial, a Glasgow-based financial capability company, has lent its CaaS (Categorisation as Service) tool to help HSBC UK deliver its first open banking loan in real-time. The process involved the customer securely linking their bank account to HSBC UK to allow the bank to pull down all the transactional data through the CaaS engine, which categorised income and expenditure to reveal a monthly disposable income. The data is then merged with credit performance data giving HSBC UK all the information it needs to make an informed lending decision.

 

Martin Leonard, Castlight’s chief operating officer, said: “The open banking team at HSBC UK has been quick to recognise the ways in which the new world of open banking can deliver added value to their customer base,”

 

“We are delighted that our CaaS technology will be instrumental in allowing the bank’s lending teams to deliver fast, accurate and insightful decision making and ultimately an enhanced customer experience.

 

“With the implementation of the CaaS technology, HSBC UK’s lending team and underwriters will have unprecedented insight into a customer’s financial wellbeing at the touch of a button.

 

“We believe its also good news for the wider lending industry as CaaS, at its heart, is a tool for ensuring that borrowers borrow safely and lenders lend safely.

 

“It has been hugely encouraging to work with HSBC UK and see their commitment to these important values and how quick they have been to appreciate that CaaS not only delivers solutions for their lending teams and benefits for their customers, but that it contributes to wider financial security which is a good thing for everyone.”