When you apply for a personal loan with Koyo, you’ll need to log into your internet banking and allow Koyo to view your transactional data. This is becoming more common practice, and it’s known as Open Banking. Koyo uses a popular third party provider called TrueLayer.
Koyo uses this data to determine how affordable a loan would be for you, taking into account your income and outgoings. While most lenders only use a credit check (plus the information you’ve given in your application) to determine your risk as a borrower, Koyo will also use your Open Banking data. The theory is that this additional information can help them to approve applicants that would otherwise get rejected.