In today’s fast-evolving financial and property markets, traditional credit referencing methods are no longer sufficient on their own. Whether assessing a tenant’s suitability or evaluating an applicant’s affordability, speed and accuracy are paramount. That’s where Open Banking referencing comes in.
Open Banking referencing provides a real-time, data-driven view of an individual’s financial health, using secure access to their bank account data — with their explicit consent. This modern approach is revolutionising tenant referencing, mortgage lending, and broader financial assessments across the UK.
In this article, we explain what Open Banking referencing is, how it works, its advantages, and how Fraser Bond integrates it into our professional property services.
Open Banking referencing is a process that leverages secure access to a customer’s banking data to evaluate their financial position. Unlike traditional credit checks, which rely on historic data, Open Banking provides real-time insights into a person’s income, spending behaviour, and affordability.
This method is increasingly used in tenant referencing, mortgage applications, and risk assessments for landlords, lenders, and property managers.
Consent-Driven Access
The individual (e.g., a prospective tenant) gives consent for a regulated third-party provider to access their financial data via their bank.
Real-Time Data Collection
The provider securely accesses up to 12 months of transaction history, including income, rent payments, utilities, debt obligations, and account balances.
Automated Analysis
Advanced algorithms assess the applicant’s financial health, verifying income and evaluating affordability, stability, and risk factors.
Report Generation
A clear and compliant report is generated for landlords or letting agents, supporting faster and more informed decisions.
Traditional referencing methods can be time-consuming. Open Banking enables instant access to accurate, up-to-date financial data, reducing decision times from days to hours.
By analysing actual income and outgoings, this method provides a more realistic view of whether a tenant or borrower can meet their financial obligations.
Open Banking referencing is especially helpful for:
Self-employed individuals
Gig economy workers
Students and recent graduates
Expats and international professionals These groups often face challenges under traditional credit scoring systems but can be assessed fairly through Open Banking data.
All data access is regulated by the Financial Conduct Authority (FCA) and conducted via encrypted, secure APIs. Users remain in full control, granting and revoking access at will.
Letting agents and landlords across the UK are embracing Open Banking referencing for its speed, reliability, and compliance. For property professionals, it offers a way to:
Verify tenants’ income quickly and securely
Confirm consistent rent payments in their transaction history
Assess affordability based on actual cash flow, not just credit scores
Reduce the risk of rent arrears or default
At Fraser Bond, we partner with leading referencing providers who are FCA-regulated and Open Banking-compliant. Through our streamlined tenant referencing process, we ensure:
Rapid turnaround times
Data-driven affordability checks
Fairer outcomes for non-traditional applicants
Full GDPR and Open Banking compliance
Whether you're a landlord looking for reliable tenants or an investor seeking secure returns, Fraser Bond offers an efficient and transparent referencing process powered by technology.
Open Banking referencing is transforming financial assessments in the UK property sector. By offering a faster, fairer, and more accurate view of financial health, it benefits landlords, letting agents, tenants, and lenders alike.
Fraser Bond stays ahead of the curve by integrating cutting-edge financial tools into our services — helping clients make smarter decisions in an increasingly data-driven world.
