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PSD2 improves credit position of SMEs

Innovative cooperation between Graydon and fintech Yolt Technology Services provides insight in real-time bank data

Amsterdam, Monday 17 May 2021Graydon and Yolt Technology Services (YTS) have teamed up to launch a new tool to help entrepreneurs to obtain a better credit position, based on PSD2. By embracing the power of ‘open banking’ technology, Graydon and YTS have launched the Cashflow Analyser tool, a solution powered by YTS’ Account Information Services (AIS) that gives credit underwriters deeper insights into the cashflow of credit applicants and customers to streamline and simplify affordability assessment processes. 

PSD2, the new European law for the payment traffic of companies, enables entrepreneurs to allow other parties access to their bank transactions and other account information, with their consent. Insight into a company’s cashflow is a valuable addition to existing credit reports, recommendations and limits. 

This new European regulation aims to increase competition in the payment market and promote innovation and the security of payment services. Always looking to innovate, Graydon, together with Yolt Technology Services (YTS), offers companies the opportunity to gain more insight into the financial health of their customers with the help of PSD2. This enables them to assess credit applications even better.

Cashflow Analyser

Entrepreneurs themselves also benefit from this ‘open banking’ technology. When they share their bank data as part of a financing application, they will be able to enjoy much quicker access to tailor-made credit opportunities, for example, when they apply for a loan, a lease car, order on credit or any other form of financing. Based on monthly incoming and outgoing totals, a thorough and reliable insight into the cashflow and thus the liquidity of an entrepreneur is provided.

“For our customers, the insights based on cashflow are a valuable addition to our existing credit reports and other financial business information”, says Paul Teutscher of Graydon. “This is even more relevant now, with the Covid pandemic causing great uncertainties and companies having extra need for insight into the financial position of their business partners. Based on more detailed information, this enables our clients to make even more careful risk assessments.”

“The Covid pandemic continues to present huge challenges for lenders and SMEs alike. There is a surge in demand for credit, while the liquidity position of entrepreneurs has become more uncertain. The Cashflow Analyser is a huge innovation for the traditional affordability assessment process. It enables lenders to make faster and better informed decisions, and their customers can ultimately benefit from this,” says Leon Muis, Chief Business Officer at YTS. “Consent is at the heart of the Cashflow Analyser, with applicants able to opt-out of sharing their data with a lender or leasing agent, whilst those who are happy to proceed will spend less time waiting for a credit decision.”

Collaboration Graydon and YTS

Graydon and YTS both saw the opportunity to use bank data as a source for financing decisions. Together they developed the Cashflow Analyser, whereby YTS as PSD2 licensee is the processor of the payment data and responsible for the underlying technology and data analysis. Graydon does not have access to the payment data of entrepreneurs, but it is able to offer its clients richer insights based on new innovative data sources through the cooperation with YTS.

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