Lettings agent software provider AgentOS has received FCA approval to use open banking technology to speed up private sector rent payments.

Open banking is a secure way of sharing financial information between customers and multiple businesses.

AgentOS says it will use the technology to help letting agents process rent collection more efficiently.

Agents will be able to automate payments via AgentOS, making it easier for tenants to pay their rent and agents to collect it and pass onto landlords.

AgentOS says its new open banking initiative will help agents reduce the amount of out of hours payment work they are having to do, allowing them more time to meet landlords to grow their business.

“We see what times of day agents are doing additional payment administration work,” says Glyn Trott, managing director of AgentOS.

“They are either getting up really early or, if the day gets away from them, they are logging in at 10pm or 11pm to manually manage payments.”

Trott says this is particularly the case for owners of independent agencies who like to keep in control of finances.

“But we’ve also seen the founders of larger agencies – or someone senior who is highly trusted – doing the same,” he adds.

With its new authorisation from the FCA, AgentOS will be able to use automation via open banking so agents will no longer have to manually manage payments, and make the process faster.

Trott says the system will replace BACS for most agents. “BACS is quite an old and slow system which can take up to three days to process a payment if it’s made to another bank,” he says.

“Online banking is quicker but requires agents to process payments manually every day.

“Open banking is changing the landscape and allows agents to benefit from automated online banking, which is vastly superior to BACS.”