Part III: B2B credit automation that cuts operational costs and minimises credit risk
Demand for digital b2b credit is growing and each day more small, midsize and large lenders will enter the market with specialized credit products tailored to the needs of specific borrowers. Better quality of decisions is no longer ensured by more underwriters doing paperwork. All due diligence and analysis are done on autopilot. With modern automation, B2B credit marketplace becomes truly competitive where before it was controlled by large players now slowed down by legacy solutions. Get the full white paper to learn how to automate commercial lending process A to Z. Success predictors of a commercial lending business We frequently help commercial lenders extend accessible, affordable, and personalized finance options to their customers. And in our experience, these factors are the biggest B2B lending project success predictors. We’ve made sure TurnKey Commercial excels in every one of these areas. Top 5 commercial lending automation challenges (and how we solve them) Over the year, TurnKey Lender has solved lending process automation challenges for hundreds of businesses worldwide. And during each of the discovery calls, the potential customers, are voicing specific challenges. 1. Lead the charge in efficiency and intelligence Commercial lenders need to be able to innovate on par with traditional and startup competitors. This means a fully digital lending infrastructure that supports the flexibility required for big-ticket deals and quick time-to-market for new offerings. B2B lenders and SME borrowers need a platform that ensures a modern level of user experience and intelligence. How TurnKey Commercial does it TurnKey Lender offers a comprehensive platform that enables commercial lenders to automate their lending process out of the box. With 98.5% satisfaction rate and praise from leading market researchers, TurnKey Commercial is based on digital lending best practices from over 50 countries. The platform provides a configurable experience for lenders and a smooth, intuitive flow for borrowers. It is created with the needs of commercial lenders in mind so the credit products, borrower evaluation and scroring, origination process, and other B2B spefic areas are flexible enough to meet your specific demands and grant you complete autonomy. 2. Underwriting and business credit scoring in b2b lending To lower credit risk and attract high-quality borrowers, commercial lenders need to gather more relevant data about each business applying for finance. They need to be able to parse and understand this data consistently to use it in automated processing, credit scoring, and decision-making. Credit decisions for business loans are a lot harder because business data is a lot harder to interpret and analyze based on unified procedures, so automation is much more complex. How TurnKey Commercial does it At TurnKey Lender we have solved this challenge and offer preconfigured and custom scoring models and personalized decisioning flows which allow to keep your staff informed and assist automated credit decisions no matter the complexity of the industry and data. But for 90% of the cases, the Decision Engine scoring is ready to tackle your underwriting and decisioning out of the box. Decisions made by TurnKey Commercial are based on the specific data you’ve chosen to collect. Thanks to configurability of the scoring factors and decision rules the automated processing is razor-focused on your business case and borrower specifics. TurnKey Lender’s self-learning Decision engine uses proprietary AI in underwriting and scoring. It analyzes data from bank statements, credit bureau, loan application, and other sources to help you make better loan decisions faster. All of that is already realized in pre-configured platform and takes from days to a few weeks to calibrate credit scoring and configure the solution to your exact business scenario. It all comes down to who can use available tools and data to come to better credit decisions and reach better clients with better offers. You can see a demo of how TurnKey Commercial handles loan origination and decisioning in this step-by-step business loan application process demo. 3. Minimizing credit risk and operational costs in commercial credit Running a lean and efficient commercial lending operation requires minimizing overhead, paperwork, and operational expenses while providing a modern digital lending experience on par with market leaders. How TurnKey Commercial does it TurnKey Lender streamlines commercial lending operations with its unified, AI-driven platform. By automating crucial processes such as loan origination, underwriting, servicing, and collection, it significantly reduces overheads and paperwork, making operations lean and efficient. Simultaneously, TurnKey Lender delivers a superior digital lending experience. It aligns with the standards set by industry leaders, ensuring your business stays competitive in the fast-paced, technology-driven lending market. 4. Tech partner for the long run The commercial lending space is constantly changing, and commercial lenders need a tech partner that maintains the platform, regularly upgrades it with industry’s newest trends, and supports new integrations, origination, scoring, servicing, and collection methods. How TurnKey Commercial does it TurnKey Lender is the only true end-to-end lending automation platform that meets modern market requirements. Our platform is iteratively developed based on our research, direct feedback, and successful practices of lending businesses globally. It automates all elements of the borrower’s lifecycle, including loan application, processing, origination, underwriting, scoring, servicing, collection, reporting, audits, KYC&AML, and more. Our solution is the most unified, streamlined, holistic, and intelligent platform to automate any kind of credit, B2B or B2C, compared to all serious competition. 5. Creating processes that scale Managing commercial lending finances is complicated. It’s impossible to scale an operation that does this manually. Any data or payment falling through the cracks can cause an avalanche of issues. How TurnKey Commercial does it TurnKey Lender is a digital lending technology powerhouse that eliminates paperwork, automates repetitive tasks, saves operational costs, and reduces credit risk and approval time. Our constantly improving platform allows commercial lenders to compete on a level playing field with the most resourceful lenders. What TurnKey Commercial brings to the table TurnKey Commercial is a cloud-based infrastructure that has all the tools necessary to operate and scale a B2B lending business. Issues and analysis that used to take staff hours or days – now handled on autopilot. Instead
How to Choose the Right Lending Automation Software for Your Business
Traditional lending, with in-branch origination and manual paper-based processes, has collapsed with social distancing becoming the new norm. Now offering credit digitally is a matter of survival for lenders, not a nice-to-have. We surveyed 40+ decision-makers in the credit industry and even before the COVID crisis, 57.1% of lenders were actively working to start/continue the digital transformation of their business to meet the customer demand for intuitive and fast credit.
TurnKey Lender Transformer – Fully Configurable Lending Management System that Digitises B2C and B2B Credit at Any Scale
TurnKey Lender offers advanced AI-powered lending automation and decision management solutions that allows lenders, as well as enterprises that offer financing, to utilize powerful workflows to simplify the entire lending management process based upon their unique credit requirements. It’s the most powerful and flexible no-code solution on the market and allows TurnKey Lender clients to deliver one-of-a-kind tailored lending platforms for banks, telecoms, manufacturers, retailers, and many other industries faster than anyone else on the market. But first, get this in-depth white paper on the TurnKey Lender Decision Engine which will power the most accurate and fast lending decisions on the market for lenders like you in 50+ countries. Intro to TurnKey Lender Transformer TurnKey Lender Transformer is a SaaS dedicated to the needs of large-scale businesses looking for unique automation software. The solution includes several multifunctional modules responsible for different elements of the lending process automation. The modules include: The Transformer solution reduces operational costs, eliminates human error, and increases borrower lifetime value. AI and Big Data are the cornerstones of the platform and are used to process millions of data points in a matter of seconds to help businesses make better business decisions on every stage of the loan’s lifecycle. TurnKey Lender’s information security policy exceeds regulatory requirements for data security going above industry standards and best practices. TurnKey Lender has SOC2 Type I and SOC2 Type II compliance reports and the globally recognized ISO 27001 Certification. The Transformer solution includes the end-to-end automation of loan processing, risk assessment, decisioning, origination, underwriting, servicing, collection, reporting, archiving, and more. The Transformer solution lowers the bank-grade lending entry barrier and makes advanced automation for large organizations with complex processes accessible and easy-to-use. Capabilities of the TurnKey Lender Transformer Solution TurnKey Lender Transformer is not a plug-and-play platform. If you have a large-scale business with unique customer flows, complex decision logic, digitalization, and data processing needs, the Transformer solution is the platform your business needs. Transformer is a set of modules for no-code configuration of fully custom lending solutions for businesses working with any scale of challenges in the lending space. From telecoms with tens of millions of airtime loan users to large-scale banks needing to implement brand-new scoring approaches. Key Functional Modules of TurnKey Lender Transformer Flow Builder The Flow Builder Module allows for building bank-grade business and decisioning logic with a drag-and-drop editor that applies approved changes instantly without the need to write a single line of code. This functional module allows clients to swiftly adjust even the more complex business processes and decision flows in an intuitive web workplace. Commercial lenders can use it to also set custom borrower’s evaluation or decision-making rules, to calculate indicators and ratios for each particular business client, or to find the most effective actions to address delinquencies. Used to design layouts for all web-based workplaces, forms, and reports. This tool enables complete customization of the TurnKey Lender User Interface to exactly match the requirements of our clients. FlexGUI uses drag and drop functionality, fully integrated with other development tools that allows layouts designed in FlexGUI to be easily integrated with workflows and workplaces. System Configurator The Configurator allows commercial lenders to integrate with any third-party solution, service, or data providers in a meaningful way with just a few clicks. This application is intended to manage the entities of the system and any changes or improvements made to it (i.e., new scoring models, decision-making strategies, integrations, etc.). Only after their approval by an authorized person, do they go live. This allows managing the process of gradual integration of system changes into the workflow by testing the changes made on a limited number of applications and monitoring the performance using the champion/challenger approach. Decision Engine TurnKey Lender’s proprietary AI-driven Decision Engine instantly collects all the data necessary for business credit scoring which allows businesses to make an accurate credit decision in less than a second. It’s developed specifically for lending automation, decision-making, and credit scoring in today’s hyper-nimble economy utilizing alternative data points like firmographics and bank statement scoring to reduce credit risk. It contains different analytical tools and features that can be used to score, rate, and re-evaluate business borrowers. Along with rich evaluation capabilities, the Decision Engine provides impressive productivity, with clustering and scalability capabilities. To suit borrower evaluation specifics in the best possible way, the server allows setting individual evaluation processes for different credit products, portfolio segments or business lines, and supports several types of ratings — quantitative and qualitative. Learn about TurnKey Lender’s proprietary artificial intelligence System Administrator The Administrator is used to manage user accounts, roles, and access credentials. The interface allows creating, editing, and blocking/unblocking user accounts, granting access rights, and monitoring user activities through system logs. As a lender, you have full control over the data each of the employees, branches, vendors, or borrower has access to. Businesses that benefit from using the TurnKey Lender Transformer Solution TurnKey Lender Transformer provides businesses with a tailor-fit platform that is built to specifically meet the needs of a large-scale business. The types of lenders who are already using the TurnKey Lender Transformer are enterprise companies leading their respective fields or venturing into the space of offering digital credit in a major way. They include: Banks & Credit Unions With the configurability of a SaaS solution and deep API integration capacity, TurnKey Lender Transformer is designed for large-scale financial companies. You may already have an existing tech infrastructure you need to utilize or want a full end-to-end solution – Transformer can handle it. It’s a customer-centric system that lets you easily manage the entire lending process at your bank or credit union from anywhere in the world. TurnKey Lender applies proprietary AI to automate origination, credit decisioning, servicing, collection, due diligence, and more. The modular nature of the solution allows for the automation of specific parts of the business you couldn’t’ digitize before and a granular approach to automation not previously possible.
10-Step Plan to Become a Digital Lender
Building a viable lending business is no easy task. But in recent years, the democratization of technology and the rise of numerous FinTech startups has led to a great lowering of entry barriers into the digital lending niche. With 82% of businesses failing due to cash flow issues, the lending market, especially that of digital SME loans, presents a great entrepreneurial opportunity.
10 Vital KPIs for Measuring the Value of Your Digital-Banking Operations in 2024
There’s no denying that Covid did to digitalization what no technology evangelist could. For several years prior to 2020, digital banking usage at PNC had increased at the steady rate of about a percentage point every quarter — until it went ballistic during the lockdown. It jumped from the beginning of the year where digital was 25% of our sales to almost 75% of our sales last month without much volume fall-off. We met or forced a massive shift in consumer behavior that on its own might have taken 10 years. The hunt for digital-banking benchmarks One measure with broad acceptance is ROI, short for return on investment, which gauges the financial success of a particular investment initiative, comparing its financial return to its financial cost. It’s calculated by dividing the net profit of a project by its total expense. For some organizations, this measure is too broad because it may “reflect expenses that aren’t consistently impacted by, or substantially supportive to, the project under review,” says Dmitry Voronenko, CEO and co-founder of digital-banking tech maker TurnKey Lender. To skirt this problem, many businesses look to KPIs, or key performance indicators. These are metrics the organization considers vital to achieving its goals, derived from applying ROI calculations to the expense of specific business functions that contribute to (or are impacted by) the project in question. In short, adds Voronenko, “the KPIs of a project are business-specific values that provide a sharper measure of how successful a company is in reaching its strategic objectives rather than ROI alone.” But first, wanted to check if you (or your staff) would like this case study of how TurnKey Lender helped National Iron Bank transform their commercial lending process. What’s the main value of KPIs? For most executives, its value is in supporting (and helping to shape) vital business objectives. It’s also important for managing staff performance and strengthening employee morale. KPIs help executives understand what’s “working” and what isn’t as aid to making strategic and tactical adjustments as needed, potentially shaping factors such as resource allocation and hiring plans . Examples of KPIs tracked by banks include everything from revenue, expenses and operating profit to findings around sales, profits and assets under management on a per-employee basis. In fact though, the number of KPIs is virtually limitless — especially for retail banks, which can engender hundreds of key indicators linked to the impact of expenses, investments, cash flows, debt, and customer service. For many bankers struggling to find ways to measure the success of newly popular digital-banking services, the sheer number of considerations may obscure the view. Success metrics for online banking To help them out of this predicament, here are 10 KPIs banks can use to help them measure the effectiveness of their digital offerings. “Each KPI should be judged on the merits of the insights it brings,” says TurnKey Lender’s Voronenko. They don’t apply in every digital-banking situation, and your bank or credit union may refer to some that other institutions wouldn’t even consider.” The overriding point is that KPIs can help banks understand the value of their digital services, according to Voronenko. “And I would add this,” he says. “KPIs have an interesting habit of creating learning cultures grounded in a willingness to test assumptions, challenge norms, and make sure outcomes are net positive for customers, in a pandemic or not.” Lending business KPI tracking in TurnKey Lender TurnKey Lender offers integrated end-to-end solutions for crediting and banking processes automation. The system uses machine learning algorithms to collect, process and presents all of the important business performance indicators at a glance in the Reporting workplace. One dashboard lets you get a working understanding of the business’ well-being, analyze the current effectiveness of staff efforts, as well as explore aggregated assets and current portfolio state. Plus, with the remote work trend being the new normal, it’s critical to be able to clearly see your staff’s performance. The built-in KPI tracking functionality lets you instantly outperform the competitors in terms of quality and accuracy of insights you get about your originators, underwriters, as well as servicing and collateral officers. The evaluation of each employee’s productivity is based on their responsibilities, taking into account numerous relevant factors, and then uses AI to process, cross-reference, and present the data to the lender. TurnKey Lender’s intelligent SaaS provides you with both a real-time and historical insight into the performance of your lending business. Schedule a personalized demo to see how TurnKey Lender can help your business grow.
Here’s How TurnKey Lender Helps You Save Operational Costs and Time (and Here’s How Much of Both)
Since entering the lending automation space in 2014, TurnKey Lender managed to become the industry standard by which the depth and quality of automation of a lending business can be measured. Some of the biggest benefits company’s clients boast include a significant portfolio growth, an increase in operational efficiency, and improvements in the clients’ lifetime value. And for the people who are still undecided as to which lending automation platform to choose, we’ve decided to take a closer look at the benefits businesses powered by TurnKey Lender reap.
White paper: All you need to know to become a consumer lender – the ultimate 2024 guide
This is a part of our series devoted to TurnKey Consumer, the ultimate consumer lending automation platform. Here are the parts of this series And here you get your white paper with all the knowledge condensed to prepare you to digitise any kind of consumer finance like a pro. Let’s roll. The digitalization dust is settling, and we can say confidently now that credit has gone digital. Which is amazing news. Amazing for the business because the industry entry barrier is lower than ever. The new competition fuels improved quality and price of credit for consumers immeasurably. Which in turn is made possible by technology. In the 2020s, any entrepreneur or company can become a lender and extend various types of consumer credit to their borrowers or customers with minimal risk and overhead. But still, business owners we at TurnKey Lender talk to every day are somewhat intimidated by lending automation and have many questions about starting their consumer finance business. We’ve gathered answers to these questions and more in this ultimate consumer lending automation guide. Here you’ll learn the steps you need to take to launch a successful digital consumer lending business. Here’s what we’re going over: Spoiler alert – our designer was especially on fire while making this one. Here’s your white paper with all you need to know to become a consumer lender.
Part I: How to automate 90%+ of an existing or new consumer lending process
This is a part of our series devoted to TurnKey Consumer, the ultimate consumer lending automation platform. Here are the parts of this series Part I: How to automate 90%+ of an existing or new consumer lending process Part II: 6 biggest consumer lending automation mistakes and how to fix them Part III: 7 consumer finance verticals with the highest growth potential until 2030 White paper: All you need to know to become a consumer lender And so, let’s begin the Part I. What kind of a lending process does a borrower expect these days? Other than the fact that they would hate coming to a brick-and-mortar branch to fill out paperwork. The borrower lands on your loan application page from an ad or from search. On their phone or desktop, from anywhere in the world. Loan application gathers all data required for instant origination and underwriting. Borrower chooses one of automatic loan offers they can get from you based on their credit score, bank statements, and other relevant data that feeds directly into your lending platform. Borrower e-signs the loan agreement and receives funds on the bank account they chose. Payments are charged within the logic set for the credit product borrower chose. In this process, there’s not much human involvement, is there? But to achieve such levity, you need lending software flexible enough to fit your specific lending model, local credit regulation, and cultural expectations. Types of consumer lenders that can and should go digital Consumer finance is such a broad category that this umbrella term includes anyone from a pawnshop owner, a BNPL provider or a peer-to-peer lending startup to a credit card department of a bank, a payday lender or any other personal credit provider. Over the years, we’ve condensed 10 most common types of credit products that digital lenders extend to their borrowers. multipurpose personal finance micro/payday loans lines of credit embedded lending (BNPL, medical, retail, POS, etc) peer-to-peer lending real estate finance (mortgage, home equity, renovation, etc) non-profit credit credit cards and overdraft leasing (dealerships, equipment, etc) telecom airtime finance All that is of course possible and easy with TurnKey Consumer – the ultimate consumer finance automation platform. What stops business from offering consumer credit The factors that stop business owners from becoming lenders most commonly are as follows: lending process management overhead credit risk management ROI of the credit program The parts of the lending process you need to automate Fundamentally, for a technology provider like TurnKey Lender there are two kinds of lenders we automate processes for: Established lenders going through a digital transformation New companies looking for long-term reliable lending tech partner However, if you’re aiming to do digital lending in an optimized and reliable fashion you’ll need a one-stop solution in both cases. The parts of the lending process every consumer lender will have to automate. Loan application – every borrower at some point lands on your online application page where they complete atailor-fit application process, providing necessary documents, credit check, approval, and disbursement of funds. Origination and underwriting – when automated properly, both origination and underwriting happen instantly involving a human only in case of a problematic application. However, the process under the hood uses AI to analyze loan application, credit bureau, bank statements, and other data to help you make an accurate low-risk loan decision that the borrower can be excited about. Loan servicing includes managing the relations with the borrower while they are paying you back. Processing payments, changing schedules, applying fees, assisting the client, administering tax, etc. Debt collection – collections can be an important source of anxiety. But a platform like TurnKey Lender alleviates those headaches by instantly identifying debtors, automatically communicating with debtors, handling payments, reminders, calculating collectability scoring as part of risk assessment, etc. Collateral management – many of the consumer lenders TurnKey Consumer automates lending for, offer secured loans. For them, the collateral module can be enabled in the platform to unlock all necessary features to manage collateralized assets. Reporting module – all the data that enters your business needs to be processed and reflected in the reporting module tailored to your needs. Borrower, vendor (for BNPL), investor (peer-to-peer lending) portals – depending on your business process, you may need portals with specific functionality for borrowers, vendors, investors integrated natively into your business. Using separate stand-alone solutions to automate these processes is the key mistake that hinders the ability of lenders to scale as well as causes maintenance/compatibility issues and stress. But we’ll talk more about common mistakes in the next chapter. Choosing consumer lending automation platform Of course, we’re biased. But on an ongoing basis, TurnKey Lender analysts track the capabilities of other solutions on the market and we can proudly say that no other platform on the market provides this level of one-stop intuitive automation of the entire lending process. So let us use TurnKey Consumer as an example of what a modern consumer lending automation can do. We offer a proven one-stop platform that grows your loan portfolio while cutting operational costs and risks. We know what the most efficient and optimized way is to automate consumer lending – we have done it for creditors in 58 countries who currently service over 50 million borrowers through TurnKey Lender platform. Enjoy all the best practices, unexpected finds, preconfigured common flows, credit calculations, integrations, and more in TurnKey Lender’s cloud platform for consumer finance. Intelligent data-driven scoring cuts credit risk Platform tailored to you ensures instant performance boost Stand out in user experience, speed, and credit terms No human error or unnecessary paperwork Automation aimed at radical operational cost reduction All of lending running from a unified infrastructure Our goal is to let you achieve these objectives as a consumer lender Focus on business development instead of loan, staff, and borrower management It’s a consumer lending infrastructure that runs on autopilot and doesn’t require micromanagement of the platform or the staff. It’s a reliable, proven machine that simply works
Part II: 6 biggest consumer lending automation mistakes and how to fix them
This is a part of our series devoted to TurnKey Consumer, the ultimate consumer lending automation platform. Here are the parts of this series And so, let’s begin the Part II. The whole consumer lending space is reshaping quickly with credit moving directly to product or service providers. For example, 30% of originations in 2021 happened in-store, using applications submitted by staff. Valued at $90.69 billion in 2020, the pay later market is projected to reach $3.98 trillion by 2030. How likely do you think this trend is to continue? Extremely, we say. Before we proceed, would you (or your team) like this white paper with all you need to know to become a consumer lender. Fears and pains of a consumer lender At this very moment hundreds of lenders around the globe use TurnKey Lender to extend credit to millions upon millions of their borrowers. The fears lenders voice to us most often is that if they don’t become a part of digital lending landscape now, tomorrow it will be much harder if not impossible. At the same time, committing to a lending platform provider is a fundamental business decision which is hard to make with peace of mind. This means that if your focus is on lending as a service, borrowers have come to expect a new added value from their lender. Better terms, more flexibility, promos and special offers deployed on occasion. You must be a part of their digital life. Finding your place in the new consumer lending industry To secure their place in the marketplace a modern lender needs a solid, user friendly and flexible digital lending presence. So borrowers could get better loan terms and better user experience for doing business with you. TurnKey Lender provides you with one-stop platform that allows you to automate all parts of the lending process on your terms. The platform is based on digital lending best practices from over 50 countries it works in and offers a configurable experience for the lender and an intuitive and smooth flow for the borrower. The solution is transparent and designed by some of the best UX and UI designers making it feel just as good as it looks. Attracting high-quality borrowers by being better than competition High-quality borrowers come to where they get the best loan terms. For that to be you, you need the lowest operational costs in town and the lowest credit risk. Both are achieved by being better at lending automation. Analyzing more of the right data faster and making automatic decisions based on it is a hard job to do. Luckily, this is a job we do on behalf of lenders here at TurnKey Lender. TurnKey Lender is a powerhouse of the digital lending technology that takes all of automation challenges off your hands. Replacing spreadsheets and legacy consumer lending platform We talked to a lender who now automates all of credit with TurnKey Lender about his experience before. Here’s how he described his experience before the digital transformation. “I was managing finances via spreadsheets, on paper and in outdated soft made from tools I’ve put together over time. Payments were getting lost; I didn’t know about problems until a major crisis arose. Everything was taking too much of my resources and the process wasn’t transparent for the client.” We at TurnKey Lender live in the world of streamlined lending processes so it’s shocking to us every time we see businesses manage lending manually. Every day those businesses come to us with their homemade solution or spreadsheets, and we can’t but be amazed by the amount of work they do. And how much better their life is about to get with 90%+ of their work automated with TurnKey Consumer. Those who delay meaningful lending automation, face their business getting more unscalable, error-ridden, and expensive despite their best efforts every day. Sooner or later, any lender concludes that to run a lean and efficient operation with little to no overhead, paperwork, and operational expenses they need a technology partner that they can delegate automation to long-term. This is the only way to lower one’s operational costs and provide a modern digital lending experience on par with the market giants. Eliminating human error in consumer lending process Human error and unnecessary manual analysis are key predictors of a slow and inefficient lending business that makes it impossible to compete. Human error leads to significant cost, loss of customer trust, and potential legal liabilities. It’s important though that people can’t and shouldn’t be fully removed from the lending process. But the human connection and time should be spent on building a better experience and providing better service to the borrower, not on tasks that reduce the company’s productivity compared to the same automated process. As an example, manual loan underwriting still takes most providers days if not weeks. With TurnKey Lender credit scoring and borrower analysis is much more in-depth and provides immeasurably better loan decisions. But at the same time, the loan decision is made instantly. TurnKey Lender eliminates paperwork, and any room for human error from consumer finance. The platform automates recurrent tasks, saves you operational costs, credit risk, and approval time. This is achieved by constantly improving the platform to allow lenders compete on the level playing field with lenders that have the most resources. One-stop solution vs scattered infrastructure in consumer finance automation Most lending solutions automate origination or loan management. Dealing with separate providers and synchronizing them or developing parts of the platform myself is a huge additional effort which I don’t have capacity or expertise for. TurnKey Lender is the only true end-to-end lending automation platform that answers the modern market requirements. We achieve that because of the iterative nature of the platform based on our research and the direct feedback and successful practices of the lending businesses globally. It’s the only solution you’ll need to automate all elements of the borrower’s lifecycle. Loan application, procession, origination, underwriting, scoring, servicing, collection, reporting, audits,
Part III: 7 consumer finance verticals with the highest growth potential until 2030
This is a part of our series devoted to TurnKey Consumer, the ultimate consumer lending automation platform. Here are the parts of this series And so, let’s begin the Part III. Personal loans, credit cards/lines, BNPL, mortgages, peer-to-peer, and all other types of consumer finance are seeing a sharp rise in demand in recent years. Partly due to the economic climate in the world. But mostly because credit is becoming cheaper, easier to obtain, more flexible to repay and less stressful for consumers to use – thanks to rapid development of lending technology. Before we proceed, would you (or your team) like this white paper with all you need to know to become a consumer lender. Consumer lending platforms like TurnKey Lender levelled the playing field and democratized credit, increasing the competition in the lending market through affordable, intelligent, and configurable lending automation. Advances in credit scoring and decision-making allow lenders to reach wider audiences and approve more of the better loans on auto pilot where it would’ve taken a traditional brick-and-mortar lender weeks. But in the midst of a technological revolution in the lending industry, one may think that the streets of all consumer finance industries are paved with gold waiting to be harvested. Which isn’t necessarily the case and borrowers most often are looking for credit in certain places and on specific terms. Today we share the types of consumer lending businesses that we see get the best response from the market and grow the fastest using TurnKey Consumer platform. 1.Unsecured personal loans as the ultimate consumer finance tool Closed-end, uncollateralized financing for a small- to mid-size individual need is called a personal loan, a.k.a. consumer loan. The multipurpose personal finance industry is expected to continue growing in the next 10 years due to increasing consumer demand for more customised and tailored financial services. The demand for personal financial services has been influenced by advances in flexible automation, meaningful use of big data and artificial intelligence, and mobile banking, that have made it easier for hundreds of millions new people to access credit and other financial services in the nearest years. Despite the advent of the embedded finance age, the traditional unsecured, consumer loans with a variety of terms, fees, models, and peculiarities will continue to be the go-to credit choice for individuals investing in something or facing emergency. Case studies However, personal finance is an umbrella term that has many promising subcategories and branches that house millions of striving businesses. 2. The old and new forms of micro/payday loans The global microfinance usage is expected to continue to trend up at a CAGR of 10.8% reaching $496.90 billion by 2030. What’s interesting is that lenders continue to innovate and offer new credit models. For example, Earned Wage Advance. Here is a success story of a startup using TurnKey Lender to reach 100k active customers in the first several months with this offering. And here’s a success story about one of TurnKey Lender’s micro lending clients. Embedded lending taking over low-risk credit across industries Consumers cite these as the reasons for why they use BNPL instead of credit cards And even if you look at it simplistically, it makes a lot of sense that credit should occur at the point of sale. But in our work, we often see that for some product and service providers it is more beneficial to partner with a lender to offer their clients flexible financing and not have to deal with loan management and reporting. Here are some exciting examples of successful embedded consumer finance projects made with TurnKey Lender: 3. Lines of credit as a retention tool and more Lines of credit as well as other lending offerings have gone digital and become simple both for the borrower and the lender. Lines of credit serve as a perfect tool to connect a borrower to your business long-term. Customers can use a line of credit to securely access and quickly receive funds without the lengthy paperwork and long wait times that come with traditional lending institutions. This type of loan offers borrowers the flexibility to borrow, repay and re-borrow as needed up to their credit limit. Additionally, borrowers can enjoy lower interest rates and fees than those associated with other forms of consumer finance. 4. Peer-to-peer consumer finance as a new stage of credit democratization The peer-to-peer lending industry has been growing steadily since its inception in 2005, with marketplaces like LendingClub and Prosper leading the charge. Over the past decade, the global peer-to-peer industry has seen immense growth, with small to mid-size lenders coming to the market and targeting specific audiences with unique needs. In the US alone, the industry has grown from a few million dollars in the early 2000s to $804.2 billion by 2030 growing at a CAGR of 29.1%. With technology like TurnKey Lender, peer-to-peer lending with fully ready investor and borrower modules included is ready to use out of the box. 5. Secured loans like in the big leagues When working with new scoring methods or borrower groups without a reliable credit history, lenders often look to offering secured loans as a win-win option for the customer. People typically get secured collateralized loans for larger purchases, such as buying a car, purchasing real estate, or starting a business. They are often used by borrowers who may not qualify for an unsecured loan due to having a poor credit score or limited credit history. These borrowers, for example, can obtain consumer loans secured with a car, saving account, or house. Lenders take on less risk with these deals, so they typically require lower interest rates and shorter repayment periods than unsecured loans. 6. Using the power of credit for good with non-profit consumer lending More than 25% of TurnKey Lender clients are non-profits that use our platform to extend finance to inidividuals, business owners, refugees, asylum seekers, students, and other people in need of zero-interest financing. There’s a lot of money in the world that governments
How Lending Automation Helps Make the World a Better Place
Like it or not, lending is one of the vehicles of progress. Thanks to lending, people get funding for their ideas, their entrepreneurial dreams, and business expansions, families get their first homes and a teenager gets their first car. And like all the other financial products and services, lending is evolving.
How Lending Automation Helps Make the World a Better Place
Like it or not, lending is one of the vehicles of progress. Thanks to lending, people get funding for their ideas, their entrepreneurial dreams, and business expansions, families get their first homes and a teenager gets their first car. And like all the other financial products and services, lending is evolving.