TurnKey Lender

How to Create a Lender’s Regulatory Compliance Blueprint

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From a regulator’s standpoint, it makes good sense to scrutinize lenders. Especially those that use online channels for account origination, funds transfers, and payments processing as this niche isn’t yet as well-controlled as brick-and-mortar businesses. That’s why it makes equally good sense for lending professionals to hardwire regulatory compliance into their business model and product design. Savvy lenders are learning to leverage compliance as an asset, instead of a necessary evil.

TurnKey Lender Helps Community Banks Modify Loan Terms in the Name of Economic Recovery

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In the US, the federal government’s efforts to bolster the economy against the effects of the coronavirus pandemic have dominated the lending landscape since early April, with lenders pitching in to get partly-forgivable loans to small businesses reeling from the public-health crisis. The second round of the Small Business Administration’s Paycheck Protection Program still has money to lend, and additional government-guaranteed loan programs may crop up to stimulate economic recovery. But some community bankers are looking past stimulus facilitation to seize opportunities in existing-loan modification. Changing the terms of consumer loans to protect portfolios In fact, mortgage modification has been in the stimulus toolkit since the pandemic was declared in mid-March, with governments around the world enacting mortgage furloughs to give consumers relief during and after the pandemic. But now other loan types, including consumer loans, are coming into view through a similar lens of accommodation. “By modifying the original terms of existing loans agreed to by the borrower and the lender, banks can help individual consumers get by in hard times,” says Elena Ionenko, co-founder of TurnKey Lender, a leading lending-technology provider to traditional lenders, lessors, and retailers around the world. “And, by agreeing to the new terms, individual consumers help banks reduce loan-portfolio losses.” The commonest form loan modification is debt rescheduling, which usually gives borrowers more time to repay. Other modifications include reducing the principal balance of the loan and reducing the interest rate for the duration of the loan’s life. The ability to modify loan terms is built into TurnKey Lender’s servicing and collection system, which all of its clients use. Zilingo, an e-commerce company that last year raised $226 million to digitize Asia’s fashion supply chain, uses TurnKey Lender’s loan-modification features, as does InnoVen Capital, the largest venture-debt provider in Southeast Asia. TurnKey Lender can further customize loan-modification terms for US community banks, enabling them to help customers through hard times while protecting their own loan portfolios from erosion brought on by widespread default. And the company can do this quickly. In 2019, business consultancy Frost & Sullivan singled out TurnKey Lender as the “fastest to market” of all lending-tech providers — a process that can, quite literally, take just a few days. Loan modification in the context of full-service loan automation In fact, community banks can benefit from automated loan-modification capabilities along with digital-lending features designed to help smaller lenders compete on an even footing with national banks. Here are some of the ways TurnKey Lender can help. TurnKey Lender has processed millions of loans. Lenders count on our loan-origination software for fast and accurate application processing and our 27/7 support for a superior customer experience. The fintech’s solution uses artificial intelligence and machine learning — sifting through 839 million alternative-scoring data points — that enable smart choices and help the businesses grow. TurnKey Lender supports cloud-based loan processing as well as loan processing through dedicated servers. Does your bank have the staff and the institutional knowledge to develop, maintain, and manage an advanced lending software platform on-site? If not, a cloud-based approach may be best. Flexibility is also evident in TurnKey Lender’s modular-platform model that allows clients to use — and pay for — only those parts of the platform they need. Lenders are turning away from multiple solutions for different stages of loan origination, and for different credit products. TurnKey Lender is at the forefront of this convergence, with the power to support loans — and modifications — of every sort. TurnKey Lender addresses this top concern through rigorous third-party certification, as underlined by its adherence to rigorous Open Web Application Security Project standards, as well as certifications that attest the company meets all statutory and regulatory requirements. For community-bank personnel that may not be wholly familiar with digital lending, TurnKey Lender is always poised to help. Believing “an informed customer is the best customer,” the tech provider views the process of getting clients and prospects deeply comfortable with our lending solutions as vital to its core mission of helping lenders succeed. These elements all come into play where loan modification is on the menu. “Because our solution is built for the entire loan life cycle, our servicing and collection module can handle any modification a lender can conceive,” says TurnKey Lender’s Ionenko. “This translates, quite dramatically, into real-world relief for lenders and borrowers alike.”  Interested in talking to our lending experts about your loan modification needs?  Schedule a call today.

We Surveyed 40+ Decision Makers in the Credit Industry on the Digitalization of the Lending Industry. Here is What They Think.

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At the end of May 2020, as the financial world scrambles to adjust to the new reality, fintechs are in a unique position to grant SMEs and enterprises a truly intelligent and contactless digital lending process. TurnKey Lender, as a provider of the industry-leading Unified Lending Management (ULM) solutions, conducted a survey with lending business decision-makers at the 2019 December Singapore FinTech Festival just prior to the world shifting. The event took place just before the economic and healthcare crises, and, if anything, the trend of global digitalization of financial services has just given the automation and digitalization trend an unprecedented boost as the world economies shift to recover. The same way the 2008 crisis made way for e-commerce as we know it, this one time there is the potential to do the same for e-lending.  At this year’s Singapore Fintech Festival, attended by industry-leading finance professionals from around the globe, TurnKey Lender used the opportunity to speak to leaders of different crediting businesses to get decision-makers’ thoughts on the digital transformation of the industry.  The goal of the survey was to get first-hand understanding from lenders as to the extent to which the crediting industry has digitalized. The results are presented below.  Current Attitude Towards Digital Lending (December 2020) To give you an idea as to which 40+ crediting decision-makers shared insights, of the respondents, 70.7% were already working with credit products and either looking to continue or to start the digitalization of their processes and 7% of the responders were looking to start a digital lending operation in the next 12-18 months.  Market Share of Small Lenders One important trend we observed of those surveyed was the fact that a significant portion (28%) of lenders are running small operations with a portfolio of under $10 million. This shows the monopoly of traditional lenders coming to an end. Savvy lenders have figured out a way to make digital crediting easy and affordable both for the business owner and the borrower.  These lenders understand the strategies that will work for the new generation of digital lenders.  Traditional lenders are also keeping strong with 57.13% of the respondents operating a portfolio ranging from $10 million to $10 billion. You can see a more granular distribution below. Key Objectives for Lenders in 2020 The most important goals lenders see for 2020 (as of December 2019) are distributed as follows: Showing just how important digitalization is 57.1% of lenders will start/continue the digital transformation of their business. 50% will work on reducing credit risk and operational costs. 50% will invest in improving user experience, retention, and LTV. Backing up the claim that it’s cheaper to retain clients than convert new ones 32.14% of lenders are going to launch new lending products for existing clients. 21.4% will expand to new markets with new products. Surprisingly enough just 10.7% of lenders will put in the effort to further improve regulatory compliance of their business. The Choice of Lending Products  The credit products that are commonly offered by lenders that have already gone through or plan to go through digitalization is skewed towards the smaller SME loans. Yet a large portion of credit is still going towards larger financing needs like mortgages or student loans. More specific statistics are as follows: 67.9% – SME loans 35.7% – Auto finance 35.7% – Mortgages 32.1% – Unsecured personal loans 25% – Home improvement loans 21.4% – Microfinance 14.29% – In-house financing 10.7% – Student loans The Use of Digital Channels by Lenders Regarding the level of lending digitalization, people often wonder how popular digital channels among credit providers are. Despite all the talk of digitalization, more than 35% of lenders use NO digital channels in their efforts. Meaning more than ⅓ of lenders will all need automation to catch up to what borrowers want. But the digital space isn’t competition-free, 25% of responders use both web and mobile to convert more customers. 32.1% only rely on their website in terms of digital and 7.1% decided to only go mobile. Then the question arises if the people who haven’t digitalized lending yet are considering to. And the results are: 50% are already working on the transformation. 20% plan to start within the next 12 months. 30% are not looking to start in the next 12-18 months. Of those who are planning to purchase digital lending products in the foreseeable future they plan to go one of two ways: 14% of creditors are going to create the digital lending solution internally. 85% will purchase a ready-made solution from a technology vendor. This tells us a lot about the level of trust and technology reliability software companies in the lending industry have achieved.  Expected Timeframe for Results from Digital Solution Implementation (as of December 2019) 71% believe that within a year they are going to see the results of digitalizing their lending processes. And the remainder are expecting to start seeing the results within the next 1-5 years.  Reasons Not to Digitalize Lending (as of December 2019) Almost every lender we interviewed understands the value and long-term reward of lending digitalization.  However, 20% – identify the high cost of new technology implementation  60% – fear lack of team expertise 30% – Can’t find a proper solution Some of the other reasons include fear of regulation and even customers not being ready for a digital solution. However, it’s important for companies to understand that with the right lending automation solution there is enough flexibility to be able to offer both traditional and digital credit products.  Percentage of Loans Originated Online Even though lenders may offer both paper-based and online origination, they can use their staff to originate the loans in the system for the borrower. Yet, not everyone capitalized on that opportunity to streamline operations and save costs. 55.5% of lenders originate less than 25% of loans online. Keep in mind, that may mean 15% as well as 0.5%. 16.6% originate somewhere within the range of 25%-50% online. 27.7% have already

TurnKey Lender Answers Digital Lending Questions for Community Banks

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Like other forward-looking lenders, community banks require secure and scalable lending software that can be set up quickly, delivers an exceptional user experience for lender and borrower, and is flexible and robust enough to support all types of lending. Furthermore, moving to digitize its lending in this fashion, a community bank is arming itself to compete not just with local banks and credit unions, but with national and regional players. Becoming a digital lender means going head-to-head with a growing host of standalone fintechs, a group that includes household names like PayPal and QuickBooks. National banks figured out how to automate their lending process years ago, and are starting to see the benefits on their bottom line while most community banks have been unable to implement Loan Origination Systems (LOS) due to high costs. Thanks to recent advancements in AI and cloud computing, community banks are now able to level the playing field with affordable LOS software.   Automation tailored to community banks According to Wikipedia, a community bank is a depository institution that is typically locally owned and operated with aggregate assets under $1B. They tend to focus on the needs of businesses and families where the bank holds branches and offices. At last tally in 2003, 94% of US banks were community banks, which accounted for 14% of US bank deposits. In times of crisis, individual and small-business borrowers frequently turn first to community banks for support and guidance. Meanwhile, the combination of community banks’ high technical requirements, increasing competition, and the present public-health crisis puts community-bank executives under pressure to make sound decisions both for immediate action and future consideration in a fintech segment that is growing in importance by the hour.  Fortunately, TurnKey Lender can help. Our work with community bankers spotlights their concerns, enabling us to satisfy their needs with white-label lending platforms as robust as anything available to their rivals — and at exceptionally flexible price points. Our loan origination software allows local bankers to select exactly which features are needed, and our platform is personalized to fit their staff’s unique workflow.  Digital-lending priorities of community banks This is what we have gleaned about the digital-lending priorities of community banks. Issue #1: Community banks want to compete with big banks and fintech’s with a lending solution that’s intuitive to use and speeds up credit decisioning and loan disbursement.  Response: TurnKey Lender is the “Intel Inside” many of these institutions’ lending platforms. We have processed millions of loans around the world. These institutions use our modular LOS technology and support for fast and accurate application processing, and for a superior customer experience. Knowing how they operate means we can make our small to midsize bank clients as good or better than many established digital lenders in the marketplace today. Issue #2: Community banks are not always sure whether cloud-based or dedicated servers make the most sense for them. Response: TurnKey Lender supports both hosting models, but an answer to the question can be derived from a related question. Does your bank have the staff and the institutional knowledge to develop, maintain, and manage an advanced lending software platform on-site? If not, they may side with most small to midsize businesses and opt for a cloud-based SAAS (software as a service) model. This is a prevalent choice for large organizations looking to balance cost-savings with the integrity and security of their data.  Issue #3: Community banks need a one-stop lending solution.  Response: The banking industry is turning away from multiple solutions for different stages of loan origination and processing, and for different credit products. TurnKey Lender is at the forefront of this convergence, with the flexibility and power to support loans of every sort. From mortgages, personal loans, business loans, commercial real estate loans, point-of-sale lending, and more. All that and more on one platform that features consolidated reporting for immediate insight on credit portfolios across different product types. Issue #4: Data security and customer privacy are paramount to community banks. Response: TurnKey Lender addresses this concern through rigorous third-party certification. The primary gauge for best practices to safeguard the lender’s data and their customers’ peace-of-mind is the Open Web Application Security Project, or OWASP, standard. TurnKey Lender is compliant with this standard, evidenced by its compliance with the widely recognized ISO 27001 standard of information security, and the ISO 9001 standard for its quality management. We are also SOC 1 and 2 compliant. These certifications assure TurnKey Lender meets all statutory and regulatory requirements on behalf of its clients. But most importantly, keeps your data and the data of your borrowers protected.   Issue #5: Community banks need to implement digital lending quickly to support customers in the current crisis. Response: TurnKey Lender can get your community bank up and running as a digital lender in a very short time frame. How? Its solutions are not hardcoded. Instead, they are quickly configured for each client, using flexible flow-building and rules-management tools, making our time-to-market virtually unbeatable. Issue #6: Community bankers are not always steeped in digital lending. Can they be brought up to speed in terms of their understanding? Response: Without a doubt, yes. Our sales force is trained to be as purely informational as they can possibly be. On the premise “an informed customer is the best customer,” getting clients and prospects deeply comfortable with our lending solutions is an important part of our mission to help lenders succeed. A personalized Loan Origination System solves all of these challenges facing community banks by delivering systematic workflows to guide bankers through any loan origination process.  Reach out today and get started to digitally transform your community bank.

Intelligent Paycheck Protection Program Automation for Lenders

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The PPP is an enormous opportunity for creditors to help their communities in a time of crisis while adapting their business practices to the new reality. TurnKey Lender is part of a global effort to mitigate the economic impacts of the Covid-19 crisis. Covid-19 is changing the way business is done everywhere. Lenders who were once on the fence about digitalization are now compelled to go completely contactless. Federal Government-Backed Relief for US Small Businesses As a nimble pioneer of the lending-technology industry, TurnKey Lender has long provided creditors with an intelligent end-to-end solution that automates every step of the lending process. Now it plays a similar role for lenders operating under the Paycheck Protection Program (PPP), part of the $2 trillion stimulus package signed into US law on March 27, 2020. The PPP, which is run by the US Small Business Administration, offers companies and nonprofits with up to 500 workers low-interest loans to cover up to two months of payroll and other employment-related expenses. PPP Loans Are Forgivable But Lenders Are Guaranteed Repayment in Full Part of the new Coronavirus Aid, Relief, and Economic Security (CARES) Act, the $350 billion PPP is meant to provide US small businesses with eight weeks of cash-flow assistance through 100% federally guaranteed loans. Many PPP loans will be forgiven provided the borrower retains its workers and doesn’t cut their wages, with the US government stepping in to repay lenders for forgiven portions of the loans. The interest rate on PPP loans is 1%. TurnKey Lender Is Ready Right Now to Support PPP Lenders TurnKey Lender’s lending-management system is preconfigured to meet the needs of lenders who qualify to issue loans under this program. The system can be up and running for SBA-approved lenders in 24 hours. Meanwhile, its AI-driven credit decisioning engine helps pre-qualify applicants within 2 minutes. Easy but secure access to affordable credit is more important now than ever before. TurnKey Lender’s Technology and Service Suite Covers All Aspects of Lending TurnKey Lender’s Unified Lending Management solution includes application processing, risk assessment, decisioning, loan origination, underwriting, collateral, servicing, collection, reporting, archiving, compliance, and more. The system comes with decision-making rules that are tailored to the terms and conditions of the PPP. Further, you can use it to put your loan-management operations on autopilot with: Streamlined loan origination Intelligent AI-powered decision-making Simplified loan management Automated loan collection and payment alerts Purpose-Built PPP Software Provides Comprehensive Loan Tracking for Compliance and Recovery TurnKey Lender’s PPP software allows for: Immediate launch of the online PPP application form. End-to-end intelligent automation of every step of the lending process tailored to the needs of the PPP lenders. Built-in regulatory updates. Your lending program always complies with new rules as they’re published. Easy deployment from our secure, cloud-based platform. Your team gets up-to-speed quickly with intuitive process flows, user-friendly training modules, and 24/7 support. TurnKey Lender is ready to furnish creditors with intelligent bank-grade automation that is easy to use and deploys within one business day. TurnKey Lender Helps Creditors Keep Communities Safe in This Crisis The PPP is an enormous opportunity for creditors to help their communities in a time of crisis while adapting their business practices to the new reality. To check your eligibility for this program, either as a lender or as a borrower for this program, visit the SBA website. If you have any automation needs that require secure, contactless, paycheck protection loans, email a Turnkey Lender team member, or request a demo of TurnKey Lender’s PPP solution.

Lending Tech Primed to Help Traditional Players Make Emergency SBA Loans 

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“We’re a company with a significant presence in Asia as well as America, so we’ve been a major player on the ground in this crisis nearly from the start,” says Ionenko. “We’ve seen how it unfolds, and we know that speed and capacity are crucial to lenders right now.”  Lending-technology providers are essential to helping banks and credit unions get cash infusions to US businesses upended by the coronavirus pandemic.  What is the New SBA “Coronavirus” Loan Program in Overview?  A stimulus bill just passed by Congress — officially the Coronavirus Aid, Relief and Economic Security, or “CARES,” Act — earmarks $349 billion for small-business loans made between now and June 30. This facility operates mainly through the 7(a) loan program of the  Small Business Administration, which is an agency of the US government.  The 7(a) program has in fact been temporarily renamed the Paycheck Protection Program under the CARES Act.  The bill defines “small businesses” as privately owned corporations, partnerships, or sole proprietorships with no more than 500 employees. (For the most part; there are exceptions for certain industries.) Loans under the emergency lending program are capped at $10 million, double the usual amount. In another exception to the normal rules, the SBA provides a loan guarantee rate of 100% (up from 75% to 85%). These emergency loans require no personal guarantees or collateral from borrowers.  How is this Lending Program Intended to Help the US Economy?   To ensure these business loans provide economic benefits to communities, the bill underlines that the loans are primarily intended to help enterprises that keep workers on their payrolls. Labor Department data shows initial unemployment claims have skyrocketed in response to a nationwide business freeze triggered to the pandemic.  Other sanctioned uses for these emergency loans include:  Group healthcare benefits  Local employment taxes  Parental, family, or sick leave  Vacation pay  Retirement benefits  Rents  Utlities  Interest on mortgage and other debt obligations incurred before Feb. 15, 2020  How Does the CARES Act Change Other SBA Lending Facilities?  In addition to the 7(a) — aka Payroll Protection — program, the CARES Act has a direct and powerful impact on other SBA lending programs.  The Express Loan program has increased maximum loan amounts to $1 million from $350,000.  Businesses may now apply for an SBA Emergency Economic Injury Disaster Loan under the following new rules:  – They don’t have to put up a personal guarantee.  – They’re not required to have been in business for at least a year.  – They don’t have to show they can’t get credit elsewhere.  Borrowers may get a $10,000 emergency advance within three days of applying for an EIDL — and even if the application is denied, that money does not have to be paid back.  Borrowers can apply for both EIDLs and Paycheck Protection loans provided the funds are put to different uses.  For some businesses with pre-existing SBA loans, the agency will pay the principal, interest and linked fees for six months.  How Can Lenders Participate in SBA Lending Programs?  To take part in the SBA business-lending program, banks must apply to become SBA-approved lenders, a process that starts with contacting a local SBA lender relations specialist using this tool. Right now there are about 1,700 lenders that participate in the 7(a) program.  With vastly expanded loan facilities, and many of the usual rules waived, the SBA is poised to help banks extend loans small businesses need to stay afloat in this public-health crisis.   What Else Do Lenders Need to Help Businesses Out of this Crisis?  But, says Elena Ionenko, a co-founder of lending-tech provider TurnKey Lender, banks and credit unions need fast and efficient loan processing to get money flowing back into the economy.  “We’re a company with a significant presence in Asia as well as America, so we’ve been a major player on the ground in this crisis nearly from the start,” says Ionenko. “We’ve seen how it unfolds, and we know that speed and capacity are crucial to lenders right now.”  Do Traditional Lenders Face Competition from Pure Play Online Lenders?  In addition to posing operational challenges to traditional lenders, the stimulus bill seems to authorize new competition around SBA lending. The agency now has the authority to greenlight non-traditional lenders that have “the necessary qualifications to process, close, disburse, and service loans.”  This could open the door to online lenders such as Funding Circle, SoFi and Lightstream, as well as the lending subsidiaries of companies as diverse as Square, Amazon, and Goldman Sachs.  Is there a Consumer-Lending Angle that Banks and Credit Unions Should Know About?  These and other nimble tech players may find other ways to compete with traditional lenders in this crisis, specifically around consumer lending.    In an initiative distinct from the Congress-directed SBA response to the coronavirus crisis, federal bank and credit union regulators are urging financial firms to make short-term “small-dollar” loans to consumers — typically defined as loans under $5,000.  How Can Traditional Lenders Compete with New Entrants?  These watchdogs “recognize the important role that responsibly offered small-dollar loans can play in helping customers meet their needs for credit due to temporary cash-flow imbalances, unexpected expenses, or income shortfalls during periods of economic stress or disaster recoveries,”the National Credit Union Administration, the Office of the Comptroller of the Currency, the Consumer Financial Protection Bureau, the Federal Deposit Insurance Corporation, and the Federal Reserve Board of Governors say in a joint statement.  “Stacked up, these layers of competition form a barrier to banks and credit unions that want to help their communities in this crisis,” says TurnKey Lender’s Ionenko. “But they can make real headway simply by partnering with a lending-tech provider — especially if they can find one that doesn’t also compete with them as a lender.”  How Can Alternative Scoring Help Make Lending Faster and More Secure?  Besides providing end-to-end, AI-powered and mobile-friendly decisioning, processing and administration for loans of all sizes, TurnKey Lender can accommodate lending under circumstances where “traditional scoring models don’t work anymore,” Ionenko says.   “We make sure lenders can see the financial position of a business dynamically, so we’re not just calculating debt-to-credit ratios,” adds Ionenko “With consent, we can look at a variety of inputs, including bank statements and cash flows through accounting

How to Add an API Client and Key to Integrate TurnKey Lender with Third-Party Solutions and Services

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Digital lending is a complex process. In today’s age of global digitalization, it requires multiple data sources and products to work together and act as one secure and efficient operation. Payment providers, email and SMS services, accounting software, credit unions, and the list goes on. All that needs to be integrated into a one solution in order for a digital lending business to work efficiently. In the past, such integrations could take weeks to test and fully deploy. Luckily, this is no longer the case and TurnKey Lender leads the race for simple integrations in the digital lending space. The most efficient way to integrate two independent digital products or services is by means of an API key. This is a unique set of characters, like a password, that you get from one solution and enter into the other in order for them to have a direct channel of communication. Through it, the two digital entities can exchange the specific data they are set to share and store. The TurnKey Lender System comes built-in with sophisticated functionality required to easily generate dedicated API clients and keys for as many third-party products and services as you may need. It’s important to keep in mind that when you generate a new API key and share it with other solutions, you provide them access to certain data of your operation, so always stay cautious not just in terms of personal reliability of your partners, but also in terms of their technical security as they could be a gateway for cybersecurity breaches.  In today’s market, third-party services help enhance your business’ performance and can be easily integrated. Let’s go over the steps you need to take to integrate TurnKey Lender with third-party solutions and services by means of a unique API key. 1. Navigate to System > API Clients. 2. To proceed with adding a third-party integration, click Add API client. The window you see above will open. 3. Here you can assign permissions to the API client. There are two permission levels here:  3.1 Front-office – The API key will provide access to using the methods needed to support all the Front-office functionality: Application process The customer’s portal The investor’s portal     3.2. Migration – Allows for accessing the data migration functionality. 4. Once you have selected the permissions you want to assign to this API client, click Generate new key. 4.1 Here you can also save changes or cancel the key generation for the time being and come back to it later. 5. If you click Generate new key, the following popup will open. Here you can set the name for your new API key and set an expiry date for it if you need to. 6. Click OK to save the settings. The popup will close and you will see your new API key in the list. In the Actions section of each key, you can copy, edit, or erase it. All the settings, other than the Secret API key name, can be edited by a back-office user with Administrator permission access. Copy the secret API key into the clipboard and send this API key and your domain URL to the third-party service provider to let them integrate with your TurnKey Lender instance. Final Thoughts Today’s web landscape revolves around integrating solutions and processing enormous amounts of data. TurnKey Lender ensures that both processes are streamlined and secure. Use this simple step-by-step guide to integrate your TurnKey Lender portal with third-party solutions and services. Reach out today to get started using TurnKey Lender for your business.

How to Launch a New Credit Product with TurnKey Lender

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The ability to easily and safely create and manage credit products is crucial in today’s rapidly changing business climate. Different credit products are used to address the needs of individual and SME borrowers who are looking for various loan types and terms in different locations.  The TurnKey Lender System comes built-in with functionality that allows for the simple creation of custom credit products tailored to your business objectives. Out of the box, you can offer: Personal Loans Corporate (SME) Loans Mortgages The interest, terms, periodicity, calculations, grace periods, and more are fully customizable.  Traditional banks take weeks and months to develop and roll out new credit products. With our solution, all it takes is five simple steps to launch a new fully functional credit product that you can start using immediately!   1. In order to work with new credit products, your TurnKey Lender Portal Account needs to have System Administrator Access Permissions. Once enabled, navigate to the System Workplace and find the Credit Products tab on the left-hand navigation. 2. Click “Add New Record.” A window with a new credit product options will open. 3. Select the loan options that you would like to enable for this credit product. 4. Next, fill out the basic credit product information: Name Loan Type (personal, corporate, mortgage, payday or installments) Description (optional) Calculation Type (annuity, classic, flat interest) Periodicity (monthly, semi-monthly, weekly, biweekly, quarterly, annually, semi-annually) Min and Max Sum of the Loans Allowed for this Credit Product Min and Max Terms Interest Rate Write-off Tolerance 5. The only thing left now is to set up the late payments’ parameters. Simply save the changes by clicking “OK.”  Your credit product is ready for use! Next, let’s go over to the Origination Workplace and create a loan application using this new credit product. Click New Application in the Origination Workplace. In the window that opens you can select your new credit product that is now available for use for your borrowers from the front-office and loan originators from the back-office. That’s all there is to it! You can create as many credit products as your lending operation needs to outperform your competition and offer an unmatched experience to your borrowers.  Get in touch with our team for a detailed demo tailored to your business to see how we can help you grow.

9 Things SMEs Look for in a Digital Lender

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As lending niche entry barrier lowers due to the development of FinTech, competition grows. Big banks have established names and loyal client bases going for them, and alternative credit providers keep improving user experience, simplifying onboarding, and lowering interest rates. That leaves new lending market players in a tricky position where they have to compete both among themselves and with the big banks. But with the right groundwork, outperforming banks and your fellow alternative lenders is possible. Our team has worked with alternative and traditional lenders for decades. We have seen every tactic in the book: what approaches work and what simply doesn’t bring the expected ROI. That’s why we’ve decided to go over the most important things that will help borrowers make a decision in your favor. Flexibility of plans A huge chunk of lending operations targets the same market segments within the SME niche. And the thing is that different small to mid-size businesses need different things. They may be looking for SBA loans, bad credit loans, secured loans, unsecured loans, long-term business loans, and whatever else you can think of. As a lender, you want to offer a variety of products to your clients to make sure as few as possible get lost in the conversion pipeline. In addition, these products need to work pretty much on autopilot, without extensive human involvement. What you want to do here is to put together a list of credit products you are willing and capable of providing. Then you do thorough competitor research. You need to take apart your rivals from the business, marketing, sales, and growth perspectives. Make sure to also take into account your local regulators who won’t stay idle as you conquer the market. This means that from the getgo you need to build your product lineup with a compliance blueprint in mind. We go into more details on how to take care of that here. Developing and launching a new credit product takes time and effort. And in today’s day and age you got to also offer all those products digitally. So in addition to thinking through all the details and workflows, you need to take care of making your business digital. And if you have to create the software infrastructure for each new product from scratch, delivering a product suite to help every one of your potential borrowers gets really hard. That’s where TurnKey Lender’s all-in-one lending software comes into play. The platform comes with a list of major credit products built-in and is flexible enough to meet the specific needs of your business. Feel free to check out the comparisons of TurnKey Lender automation to its closest competitors, nCino and Cloudlending. Fair interests based on advanced evaluation techniques In the end, what matters to a borrower is the interest you’ll charge them. This one also is quite a pickle. As a new business you need to hurry to make a profit: you have paychecks to cover and utilities to pay. But should your interest be one-tenth of a percent higher than that of the competitor, you run a high risk of losing the lead. So how does one offer better interest rates than the market average: Smaller operational costs: you can’t pay your employees less than the competitor because the market will take them away from you. So the only valid way to achieve the reduction of operational expenses is to automate everything that doesn’t require human creativity and analysis. You’d be surprised to learn what percentage of lending operation’s workload that is. For example, AI-powered lending automation by TurnKey Lender improves operational efficiency on average by 275%. Considering the fact that we’re talking about bi-weekly or monthly expenses here, I don’t have to tell you how big of a deal that is. Loans issued at lower risks: now, risks are harder. Lending game is all about the risks you’re willing to take as a loan issuer and the borrower trying to convince you they are reliable and can be trusted with a lower rate. TurnKey Lender has got you covered here. Namely, the part of our system that is responsible for loan origination and decisioning. We put together a credit decisioning engine that is powered by deep neural networks that learn about the types of clients each lender has and adjust over time to approve more of the safe loans faster, based on the behavior of your previous clients. Your competitors will most probably be solely relying on the client’s credit scores they get from a credit bureau. TurnKey Lender went an extra mile to help you deal with risks. Our software takes into account traditional and alternative data sources and analysis approaches and runs them through our proprietary machine learning algorithms. There can be no risk-free loans. Just as there will never be risk-free insurance. That’s the whole point of the two industries. TurnKey Lender reduces risks to a minimum helping you weed out the vast majority of unreliable borrowers and letting you make informed decisions of who to fund and what interest to charge considering the business’ risk score. You’ll see that quickly that will be the sole most important metric you rely on in your credit decisioning. [related-solutions] Easy application Technology makes people more impatient by the day. Users who’re used to getting what they need in minutes won’t tolerate a lender that makes them go through a tedious application process. Consider making the first contact with your business easy. Don’t force the user who’s just researching your offering go through a 20-step application form. You just need to get the basic details from them and once they are on your hook you’ll be able to get everything else. The application form within the TurnKey Lender platform is fully customizable. So you can collect exactly the borrower data you need at any point. Narrow specialization Observing the market for as long as we have, you start to see tendencies. And one thing is very clear. The businesses that try to please everyone at the same time

15 Tools to Automate The Day-to-Day of Your Lending Business

img_Turnkey-Lender_blog_15 Tools to Automate The Day-to-Day of Your Lending Business

This is a guest post from the Clutch.co team Launching and managing a lending business can be quite an undertaking. But there are plenty of ways to make it easier. A comprehensive and intelligent technology stack should be your first step when it comes to building a successful and productive loan operation. It could prove to be one of your most important decisions.

Platform   

Flexible loan application flow

Automated payments and loan servicing

Efficient strategies for all collection phases

AI-based consumer and commercial credit scoring

Use third-party data and tools you love.

Consumer lending automation done right

Build a B2B lending process that works for you

Offer payment options to clients in-house

Lending automation software banks can rely on

TURNKEY COMMERCIAL BROCHURE

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