Open Finance company Belvo has announced the launch of its new employment data aggregation solution for customers and partners in Colombia.
Following this announcement, the new Open Finance solution is set to allow financial institutions and companies in the traditional and non-traditional financial sectors to connect directly and
securely with their customers’ data in the Integrated Contribution Settlement Form (PILA).
In addition, Belvo will continue to focus on meeting the needs, preferences, and demands of clients and collaborators in an ever-evolving market, while prioritising the process of remaining
compliant with the regulatory requirements and laws of the industry as well.
The new Belvo product was developed in order to contribute to the overall reduction of the financial inclusion gaps that currently exist in the country in access to credit. By allowing and enabling
users to share their formal employment income data in a secure and easy manner, credit providers will have the possibility to access additional avenues to verify users’ income, status, and job
stability.
Current avenues for verifying client income, including credit bureaus or internal risk models, only rely on data and information that comes from a limited portion of the population, which is often
outdated or inaccurate. With the connection with the PILA system, Belvo was enabled to optimise the manner in which the financial inclusion gap is closed in Colombia, as social security data
provides an alternative way to verify the overall payment capacity of the unbanked and underbanked population, or individuals without a traditional credit history.
The newly launched solution is expected to speed up the credit approval process, while also allowing for personalised credit offers and payment options based on the actual employment status
of workers and employees, including freelancers. In this way, the service will expand the number of individuals who can be candidates for a credit possibility, as it aggregates employment data as
a source of information for risk engines. This process will allow underbanked and unbanked people or individuals without a credit history to access loans securely and quickly.
With the addition of this new data source, Belvo developed its Income Verification product, which was designed to enrich banking information and provide a clear and true picture of clients’
financial stability.
