USE CASES

Success Stories: Open Banking based Loan Switching Platform: MVP

Problem: The "Loyalty Penalty" in UK Lending

  • Inertia on High-Interest Debt: Millions of UK consumers remain on high-interest personal loans or credit cards simply because the process of finding and switching to a cheaper provider is manually exhausting.

  • Data Asymmetry: Borrowers often don’t know their own “real-time” affordability, leading to loan rejections that further damage their credit scores.

  • Friction in Refinancing: The traditional process of switching a loan involves manual data entry, physical document uploads, and waiting days for a decision.

  • Market Complexity: With hundreds of lenders in the UK, consumers find it impossible to track which specific products offer a genuine “net saving” after considering setup fees and early repayment charges.

Solution: Open Banking-Powered Loan Switching : MVP

  • Rapid MVP Development: We built a lightweight, high-performance Minimum Viable Product (MVP) that allows the client to test the core “switching” hypothesis with real users in the UK market.

  • Open Banking Data Aggregation: We integrated Open Banking APIs (such as Plaid or TrueLayer) to pull 12–24 months of categorized transaction data instantly, removing the need for manual bank statements.

  • Automated “Switch Logic” Engine: We developed a proprietary algorithm that compares a user’s current loan APR against a live database of market lenders to calculate guaranteed monthly savings.

  • Frictionless Onboarding: By using Open Banking for income verification and identity, we reduced the “Time-to-Offer” from 48 hours to less than 3 minutes.

  • Consumer Duty Compliance: The platform was architected to support the “Best Interest” principle, providing transparent comparisons that meet strict FCA regulatory standards.

  • Mobile-First Web App: We delivered a responsive web application that provides a “neobank” feel, allowing users to authorize data sharing and sign new loan agreements via their smartphone.

  • Offshore Delivery Speed: Leveraging our  dev hubs, we took the project from concept to a MVP environment in record time ( 2 months), significantly reducing the client’s burn rate.

Results

We engineered an Open Banking MVP that utilizes AI and Machine Learning to revolutionize loan switching. By aggregating real-time transaction data via secure APIs, our ML algorithms analyze spending patterns to identify optimal refinancing opportunities. This automated approach ensures hyper-personalized loan matching and instant affordability checks, delivering a frictionless, FCA-compliant switching experience at an optimized offshore development cost.