Throughout this collaboration, EDGE will integrate with Corelation’s KeyStone core processing platform in order to provide Open Banking insights to multiple credit unions that leverage the platform.
Furthermore, the Open Banking platform is expected to deliver access to external accounts, alongside direct connectivity to credit unions’ core system for a secure and complete financial picture of members, as well as indirect applicants.
EDGE is expected to be licensed to access KeyStone via an application programming interface (API) in a secure and efficient way, for any mutual customer of the two enterprises. At the same time, the API integration is set to include read-only access for such data, sharing draft accounts’ current balance and the overall transaction history, as well as the member profiles, information, and tradelines.
In addition, the integration will be underwriting to extract insights from members’ data. This process is expected to improve the overall speed and accuracy of credit decisions, as well as meet the needs, preferences, and demands of customers, clients, and partners.
EDGE developed the platform for income verification and credit risk insights, based on the banking activity data. From indirect applicants’ income, savings, and spending behavior, EDGE produces bureau-like attributes and scores that are expected to be predictive of credit risk. At the same time, the company represents a customer reporting agency that uses loan performance and outcome data in order to improve its risk analytics and fraud management products.
Furthermore, the firm aims to provide credit unions with intellectual property and cash flow expertise by launching a pilot program. This is set to expand and optimise its overall library of capabilities, as well as risk scores. The collaboration will accelerate EDGE’s strategy of delivering Open Banking insights for credit unions, aiming to enable them to deliver improved automation and risk assessment based on a more complete financial picture. Additionally, the companies will focus on accelerating approvals and increasing conversions.
The Open Banking insights from EDGE will allow credit unions and other customer risk businesses to include important indicators of ability, in order to pay alongside the legacy credit reports, while scores are generally considered as delegates for willingness to pay. This will take place, particularly for underserved and unserved customers.
EDGE is also developing Relationship Attributes, a product based on factors from a member’s profile, which underwrites consider for marginal applications. Such aspects are delivered as attributes for credit unions to develop rules and scorecards, aiming to automate time-intensive checklists.
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