Consent-based loan application is ensuring that loan applications now can be automatically processed in full in a matter of minutes, all day every day of the week.
This is a very special success story, a unique private and public sector collaboration that was initiated by the DSOP programme (digital collaboration between the private and public sector). The Norwegian Tax Administration, the Brønnøysund Register Centre and the financial industry (represented by Finance Norway and Bits AS) have joined forces to develop a digital solution for sharing income and tax data.
The solution creates major rationalisation benefits for Norwegian consumers, public agencies and the financial industry. It is estimated to bring a financial gain of NOK 13 billion (€ 1,32) over a ten-year period.
Consent-based loan application makes it easier and faster for users to apply for a loan, as well as reducing the number of unnecessary
- Loan applicants no longer have to retrieve last year’s tax return and their three most recent pay slips and forward them to the bank. Instead, loan applicants give their digital consent via the Altinn solution to the Norwegian Tax Administration sharing information about income, debt and wealth with the bank, or in other words, digital exchange of structured data between computer systems. It also reduces the chance of tax returns and pay slips being forged.
- Consent-based loan application makes it possible to meet the important goal in the new Personal Data Act (GDPR) of minimising data collection to only encompass crucial information. The old system of sending the whole tax return on paper meant that the bank received much more information than it needs for the loan application. With a consent-based loan application, the customer can be certain that only relevant information is sent. This strengthens privacy protection.
- User-driven consent in Altinn makes it possible to meet the ‘only once’ principle when sharing data between the private and public sector.
- The banks receive around 750,000 loan applications each year and for these applications, just over 1.5 million tax returns and 4.5 million pay slips are submitted. Finance Norway has estimated the societal financial benefits on the basis of consent-based loan applications to NOK 13 billion in the course of ten years.