How Open Banking Secures Rental Agreements

Open Banking is transforming the way rental applications are verified. Where landlords previously had to rely on self-declared documents, they can now base their decisions on real payment data, voluntarily shared by the tenant in read-only mode. Here's how it works and why it's safer for all parties.

What is Open Banking?

Open Banking is a European framework, governed by the PSD2 directive, that allows an individual to authorise a third-party service to access their bank data in a secure and temporary manner. The key point: nothing happens without the explicit consent of the account holder, and access is read-only. No funds can be moved—only the transaction history can be viewed.

This mechanism is already widely used in finance (account aggregators, budget analysis). Applied to rental housing, it addresses a specific need: proving, with facts, that a tenant pays their rent.

Why self-declared documents are no longer enough

The traditional rental application relies on documents that the applicant gathers themselves: payslips, employment contracts, references. These documents are useful, but they're static, easy to embellish, and time-consuming to verify. A diligent landlord spends considerable time checking their consistency.

Open Banking shifts verification from declared to observed. Rather than believing a document, you observe actual payment behaviour over time.

How Immotecto uses it

With Immotecto, the tenant authorises analysis of their rental payment history via Open Banking. The Tecto Score focuses exclusively on this criterion: regularity of rent payment. It doesn't judge wealth, lifestyle, or personal spending.

The result is summarised in the TectoPass, an official document with a QR code that the tenant shares with landlords and agencies. The landlord views verified proof; the tenant retains control of their data.

What safeguards exist for tenants?

• Consent: nothing is analysed without the tenant's explicit agreement.
• Read-only: no banking transactions are possible, only viewing.
• Limited purpose: the analysis focuses on rent payment, not the tenant's entire financial life.
• GDPR: data processing complies with European data protection regulations.
• Control: the tenant decides whether or not to share their TectoPass, and with whom.

What it changes for landlords

Landlords reduce uncertainty at the most critical moment: choosing a tenant. They rely on reliable information, obtained quickly, without having to request and scrutinise supporting documents. They can devote their time to serious candidates.

In summary

Open Banking secures rental agreements by replacing trust in documents with verification of actual payments, with tenant consent and read-only access. It's faster for landlords, fairer for tenants, and privacy-respecting. Immotecto applies this principle in 9 European countries and 6 languages, free of charge for tenants today.