Rental payment recording service gets a boost from Open Banking

Rental recording service CreditLadder has reported a boom in users since the launch of the Open Banking Scheme.

Since January, the UK’s main banks have had to allow other financial providers to access their customer data on behalf of a client.

In this case, tenants using CreditLadder will tell their bank they want the service to ‘read’ their rental payments and the information is passed on to a credit reference agency, such as Experian.

Previously, tenants would have had to complete paperwork or obtain their lettings agent or landlord’s permission to have their rent recorded through CreditLadder, so Open Banking speeds up the process.

More than 1,000 users have signed up to CreditLadder since Open Banking went live.

Sheraz Dar, chief executive of CreditLadder, said: “When CreditLadder launched its Open Banking service we were acutely aware that the take-up may be held back given the newness of the technology.

“But so far Open Banking is proving popular with our customers. The number of people signing up to our service has doubled and last week 80% of those applying to join our service now do so via Open Banking.

“Many of the UK’s 11m private renters are finding it harder and harder to get on the property ladder, so it’s no surprise that a service like ours which gives them a leg-up is proving popular.”

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