How Does Linking My Bank Account Details Work?
Written on the 10 November 2020 by Nathan Drew, Fox Finance Group
How does linking my bank statements work?
But Just How Safe Is This Permissioning?
Online bank account permissioning is usually done through the online application process, or on request by your trusted Finance Broker. Here you will be asked to enter your username and password (your Credentials) in the same way that you would access your online bank accounts. This might seem uncomfortable, but the back-end processes are robust, and security measures are as strong as any Australian banking institution. In fact, the security measures that are taken to protect your information throughout the process is the same technology used by the big banks right here in Australia.
Let's Dig a Little Deeper
The main reasons for financiers wanting this access is to save you time and ensure the accuracy of their loan assessments. Once upon a time, getting a loan meant spending 6-8 weeks filling in forms and then waiting around for banks to approve you. New technologies have helped professional Financial Service Groups like FFG improve their processes, allowing them to deliver a fast and painless solution. This means that you don't have to spend weeks drowning in paperwork in order to apply. When you give access to your bank data, we are able to take a quick snapshot of all the information that we need to best present your loan application to the very best financier option.
To put things in perspective, linking your bank transaction feed takes less than 15 seconds to complete, which is light years faster than you scanning bank statements or downloading PDF documents from your online banking portal. In addition, a lot of the Fintech Financiers systems are now set up to read and analyse electronic bank transactions in a matter of seconds, helping them make a lending decision in a matter of minutes.
Alternatively, when you provide PDFs of bank statements, the tech system's efficiency is substituted for human eyeballs which slows the decision-making process slows down drastically, plus it then is subject to human error and misunderstanding.
What Does Fox Finance Group Actually See When I Enter my Credentials?
Here's a short summary of what we can and cannot see:
We will not able to see bank login or passwords, nor do we store any login credentials.
So, Fox Finance Group Can't Transact on My Account?
No, nor do we want to. Our aim is to find the best finance option for you in order to have money put into your account rather than the other way around! The systems and processes are set out so that we can only ever access a 'view-only' version of the transactions across an account; we do not have the facilities or capability to make any transfers, to anyone, ever.
What Service Provider Does Fox Finance Group Use to Achieve This?
Fox Finance Group partners with an Australian company called illion BankStatements, who is a long-standing provider of online security services in Australia and is also used by many of the big banks. And just like Fox Finance Group, Proviso never sees banking Credentials and cannot transact on your bank account.
So How Does All This Encryption Actually Work?
In its simplest form, encryption is the process by which data is translated into code, which to most users would appear as a meaningless mess. Data that has been encrypted is given an 'encryption key', and only those that have the corresponding encryption key can see or open encrypted data. Every encryption key is unique and corresponds to a unique set of encrypted data. Encryption is the most effective way to achieve data security with many websites using some form of encryption (if it says HTTPS in the URL) to ensure a high level of confidentiality.
The permissioning security works on a double-encryption process whereby neither Fox Finance Group nor Proviso ever has access to both "keys" needed to log in to the customer's bank account.
When a customer enters their Credentials the system automatically encrypts our details and sends them securely to Proviso.
We hope this article helps you understand this safe new way of getting some important information to us so we can help you gain access to fast, simple finance solutions.
If you have any questions, feel free to give us a call on 1300 665 906 and we'll be happy to chat or contact us here for more details.
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Got more questions? Here are some more FAQs answered for you.
What does permissioning my bank statements this way do?
It speeds up and streamlines loan applications. This means less paperwork, less fuss and a quicker decision about loan approval. We do this with our own technology that retrieves your bank statement data and sends it directly through to your Fox Finance Group Lending Specialist.
Who needs the bank statements?
As part of tighter government regulation for borrowing money, most consumer loans require bank statement data as part of the loan evaluation. Brokers and lenders need to make reasonable inquiries into your ability to pay back the loan. Bank statements are an important part of this reasonable inquiry.
Why are bank statements important?
Some of the things your bank statements will show are your income, that you are regularly paid wages, other loan repayments and your expenses. These factors help determine that you can afford to pay back the loan.
How many months of statements are required?
The most common requirement is for 90 days or 3 months of bank statement data. Some lenders do require more, sometimes up to 6 months.
Who authorises you to get my bank statements?
You do. We can't get your bank statements to send to the lender without your permission.
What do you do with my bank statements?
We make them available to the lender to whom you are submitting your loan. That's it. The statements are either sent via email or stored in our secure database where only the lender can access them.
How much does it cost?
It's a completely free service to you if you're applying via our Fox Finance Group link.
What security measures are in place?
Security is our highest priority. All data sent to our server is encrypted with 256-bit encryption, secured by 2048-bit keys. This is the same level of encryption that the banks use. You can read more details about their security measures here.
Author: Nathan Drew, Fox Finance Group
About: Managing Director - Fox Finance GroupConnect via: LinkedIn