Open Banking allows deposit-free firm to screen overseas renters

Rental platform Canopy, which allows tenants to rent without a deposit, has announced a new partnership which will allow agents and landlords to screen overseas tenants.

The partnership with Plaid, a US-based platform which allows companies to integrate Open Banking into their offerings, means Canopy will now be able to carry out checks on tenants coming to the UK from the US, Canada, Spain, France, Italy and Germany.

Canopy says that this access to Open Banking will provide renters with greater social mobility across different countries.

Agents and landlords will be able to check tenants' affordability, credit assessment and historical financial data, allowing them to make an informed decision quickly.

Plaid has integrated with 10,000 banks in the US and Canada and has recently entered the UK market.

"We believe every human being has the right to a safe roof over their head and should be given an opportunity to build a better life," says Tahir Farooqui, Canopy's founder.

He says the firm's RentPassport powered by Plaid will help tenants to achieve a better understanding of the expenses associated with renting property and make choices that help them save towards their financial goals.

"Open Banking has the potential to power global renter mobility by delivering greater transparency and quicker access to financial information. We are thrilled to have Plaid as our global partner in that journey," says Farooqui.

A spokesperson for Plaid adds: "We want to make money easier for everyone, that means supporting tech innovators like Canopy who share our ethos of greater financial wellness including better choices for consumers."

Canopy, which specialises in deposit-free renting and tenant passports, announced new investment of over £3 million in July.