At Lightning Reach, we’ve embraced open banking to revolutionise how timely financial support is delivered. By allowing applicants to securely link their bank accounts, we enable support providers (including financial support and advice from organisations such as charities, housing associations, local government and more) to access real-time financial information, reducing delays and simplifying the grant application process.
The benefits of open banking in grant application processing
One of the standout benefits of open banking is the significant boost in efficiency. Through Lightning Reach, applicants can securely connect their bank accounts in less than a minute. This allows organisations to easily and quickly verify financial details, speeding up grant delivery.
Claire from automotive charity Ben highlights they have saved an estimated 70% of their time through open banking: “With more complex financial cases, open banking allows us to get the information we need from applicants in a much smoother and faster way. It’s been a game-changer for our case managers.”
Fraud prevention and security
Security is also at the core of Lightning Reach’s design. Our connection to a user’s bank account is strictly read-only. We can view the transaction history to verify financial situations but cannot see any login details or access to funds. Our partnership with Plaid, a technology provider regulated by the Financial Conduct Authority, ensures all data is handled with the highest level of security.
Nikki tells us how security has improved at PA Housing: “We’re not having to store bank statements, which was a big issue with our systems. It takes out a whole level [of security risk] that we don’t have to worry about as a company.”
Open banking also helps prevent fraud by pulling financial information directly from the applicant’s bank accounts. This immediate connection ensures that the financial information is accurate and cannot be altered, unlike PDF statements, which are easy to manipulate. With rising cases of fraud observed among our partners, this added layer of security provides peace of mind, reducing the risk of tampered financial details and ensuring a more trustworthy and streamlined process.
Identifying financial red flags with open banking
Open banking is beneficial for organisations to gain a clearer understanding of an applicant’s financial situation. Sam from the Royal Naval Benevolent Fund (RNBT) notes, “We’ve identified significant issues like gambling and have been able to steer people towards other organisations that can help them with budgeting and debt management.” This has provided long-term solutions for applicants while ensuring that RNBT’s resources are used more effectively.
By allowing users to connect multiple accounts online, Lightning Reach simplifies the process for those with more complex financial situations and allows partners to understand their needs better, leading to more targeted support and services that improve long-term financial stability.
Open banking has transformed how grants are processed, offering faster, more secure, and accessible financial support while preventing fraud. At Lightning Reach, we’re proud to be at the forefront of this innovation, helping organisations like Ben and RNBT make a meaningful difference in people’s lives.
To learn more or discuss how we can help streamline your grant process, reach out to us at hello@lightningreach.org.
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