Fully Automatic Loan Application: How to Apply for a Loan witn TurnKey Lender
Quick, easy to use, and efficient interfaces have gone from nice-to-have options to a key factor for lenders’ success in the current economy. The good news is that business doesn’t need to create a custom in-house solution for borrower onboarding. TurnKey Lender comes with both a sophisticated back and front-end built-in. The borrower portal and separate workplaces for employees check off all the boxes of what the lender and borrower need for a smooth digital lending experience. https://youtu.be/k9BQWWk1vlw TurnKey Lender lets businesses provide borrowers with a 1-minute loan application process. The first step of the loan application process is the loan terms selection. By default, the loan terms selection is where the borrower chooses the loan type and specifies the basics of their financial needs. At a glance, the borrower can see the calculations for their loan. Default TurnKey Lender functionality also allows businesses to offer promo codes for custom terms and special offers. For the second step, the borrower needs to create an account that the loan application will be connected to. The system needs their email to confirm they are a real user and not a robot. The customer can easily use Google or Facebook authorization if the business allows this form of authentication verification. The third step is the final and the most important one in this process. The vast majority of financial institutions still rely on manual labor to rekey the application data or pass it between departments. This is not the case with TurnKey Lender.The data entered in the application form will be analyzed by the TurnKey Lender Decision Engine. This Decision Engine applies deep neural networks and machine learning to determine the creditworthiness of this particular borrower and the risk group they belong to. A business can customize the loan application form, scorecard, and the decision rules to make sure the criteria for reliable borrowers is met and exceeded.  Once the borrower fills in all the required fields, they need to accept the disclaimer(s) which a business can create in the TurnKey Lender portal and then submit their application. That’s it! The System will automatically fill the borrower profile with their data and show them the current status of their application. Borrowers have come to expect intuitive online interfaces from their service providers. If you choose TurnKey Lender, you’re providing your exceed the expectations of your customers. Want to learn more? Schedule a personalized TurnKey Lender demo today.Â
Boost Credit Decisioning Accuracy with Bank Statement Scoring
Nothing speaks better to the borrower’s credibility than the structure of their income, their daily expenses, and their consumer behavior. New economic and health challenges are now dictating new rules for processing and approving loans. What we are finding is that traditional borrower evaluation approaches are no longer sufficient. Lenders need to innovate and implement new scoring models to gain a better insight into the borrower’s personality and how likely they are to pay back the loan. Bank statements can be a perfect basis for accurate credit scoring. TurnKey Lender clients who have implemented this scoring approach, make more than 80% of their credit decisions based on this data. This approach has significantly cut costs that clients used to spend on bank statements as well as increasing the overall productivity, speed, and accuracy of the loan origination process. In order to streamline this process, TurnKey Lender has a partnership with Plaid that tracks compliance with the program through ongoing bank account analysis. The company uses APIs that connect consumers, financial institutions, and developers. TurnKey Lender easily integrates with the solution and formats the Plaid bank statement data on the fly to present it in your TurnKey Lender portal in a user-friendly manner. How Bank Statement Scoring Works in TurnKey Lender In the light of the COVID-19 crisis, TurnKey Lender provides creditors with a solution that now includes two scorecards. The first scorecard runs a basic borrower evaluation. It is conducted completely within the solution. Proprietary machine learning algorithms and deep neural networks are applied to evaluate the borrowers at this stage. Only potential borrowers who pass the initial analysis with a low-risk score or users who already have successful loans within the System will be able to request a bank statement. This way a lender doesn’t spend excessive funds on statement requests for users who aren’t likely to be eligible for a loan. For the next scorecard, the bank statements are collected in the format of PDF files and are formatted to present data in the System interface in an intuitive matter that allows the originator or underwriter to make the crediting decision within seconds. How It Looks: The System not only formats but analyzes the bank statement data and adjusts the risk score. All it takes is a quick glance by your employee and you are ready to either disburse a loan, change its terms, or decline the application. If the lender needs more data to make a decision, they can carry on with the analysis using the built-in credit bureau integration or fraud prevention functionality. All this allows for an unmatched credit scoring accuracy, drastically reduced human error, and higher margins on the loans due to dynamic terms’ calculation. Interested in learning how this can work for you? Reach out today and we can walk you through the process.
How to Customize Loan Decisioning Rules in TurnKey Lender
With the new challenging economic reality, the demand for loans has grown and lenders have to adjust their borrower evaluation and decisioning workflows. A sophisticated set of decision rules helps reduce the strain on loan origination officers, cuts credit risks, and streamlines the performance of a business. Decisioning rules help lenders automate loan origination processes and flexibly weed out the borrowers they don’t want to do business within the very early stages of the loan’s lifecycle. As a leader in Unified Lending Management (ULM), TurnKeyLender fully automates all steps of the lending process while also making it flexible and adjustable. The Unified Lending Management System comes with a set of pre-configured decision rules but also allows for complete customization. The default or custom decision rules will apply to every loan application. In this article, we’ll go over the step-by-step process of adjusting the credit decisioning rules in your TurnKey Lender portal. Decision Rules in TurnKey Lender In order to access and edit the decisioning rules, navigate to System -> Decision Rules. Here you can disable or enable separate rules by clicking the checkbox next to each rule. The three default behaviors for matching each rule are as follows: Refer – Pass the application along to the Underwriting Officer. Reject – The loan application is rejected. Do Nothing – No actions are taken on the loan application. The credit decisioning rules are divided into several categories: Anti-fraud Rules Credit Policy Rules Internal Rules Alternative Rules Let’s go over each category in more detail. Anti-fraud Rules This is a basic list of rules that compare the borrower’s data against the internal and external databases. Open Sanctions Database – TurnKey Lender runs borrower data through the international open sanction lists to make sure you avoid doing business with dangerous people. Blacklisted – Runs the borrower and application data against the internal blacklists. Identical Phone Numbers – Checks if borrowers with identical phones exist in the System. Mobile Phone Number – Checks if borrower’s mobile phone number has already been used by another user. Suspicious Age – Specify the age you may consider suspicious. Suspicious Phone Number – Searches for borrower’s phones in the list of suspicious phone numbers. Driver’s License – Checks the uniqueness of the driver’s ID. Minimal Age – Specify the minimum age you are willing to work with. SSN – Checks the borrower’s SSN against your database. Credit Policy Rules The credit policy rules check the borrower’s sources of income, financial stability, and residence. Employment – Check the borrower’s official employment. Residence At The Registration Address – Specify the time you prefer borrowers to have lived in the place of residence. Net Income – Specify the acceptable lower income limit. Loan To Income – Specify the acceptable loan to income ratio. Internal Rules A few more rules check the number and quality of loans the borrower has in the System. Number of Active Loans – Specify the number of active loans you consider to be acceptable for a borrower. Delinquency Check – Check the minor and major delinquency rates you consider acceptable. Alternative Rules Alternative rules check borrower’s psychometric and behavioral factors. Application Details Pasted From The Clipboard – Checks if the data was pasted into the application form from the clipboard. Replacement Of Attachments – Checks the number of times the borrower has replaced the attachments. Suspected Copy/Paste From Filling or Abnormally Fast Typing – Checks if the application was filled too fast to be filled manually. Suspected Irresponsible Behavior – Checks if the maximum loan term and loan amount were specified too quickly. Too Doubtful About The Loan Term – Checks the number of times the loan term has been changed. Click Save Changes once you are happy with the decision rules settings. The changes will be applied to all the loans originated from that point forward. Multiple Credit Products TurnKey Lender also allows for offering different types of loans (e.g. personal and mortgage) if your lending operation needs to. This is achieved with the help of several sets of decision rules and scorecards built-in within the System. Each tab contains a separate set of decisioning rules to make sure you have a flexible business flow that covers all your digital lending needs. Final Thoughts That’s it, now you know how to customize the loan decisioning rules in TurnKey Lender. The applications that match the decision rules will either be rejected or passed along to the Loan Underwriters for further analysis. An additional security measure that comes pre-configured with the TurnKey Lender System is that the adjustable scorecard is powered by the company’s proprietary AI-driven technology. The scorecard and the rules operate as part of the TurnKey Lender decision engine which allows for an unmatched credit decisioning accuracy.   Get in touch with our team for a demo that is tailored to your business.
Can You Safely Disburse a Loan in Less than Two Minutes? Yes — Here’s How.
Safely disbursing a loan in the shortest time possible and with minimal risks is a constant race for lenders. To this day, it takes lending companies anywhere between 24 hours to a week to analyze the loan application, do the borrower evaluation, gauge the credit risks, decide on the interest rate, and finally, to disburse the loan. And while technology today has made enormous strides in the recent past, for the most part, the lending industry is still reliant on the same processes and techniques that were around years ago. But for each industry, there comes a time when a disruptor changes the way things are done. In 2004, Shopify launched and changed the way e-commerce works. Today, TurnKey Lender is doing the same for the lenders worldwide (50 countries and counting).  At TurnKey Lender we help companies disburse loans faster and safer with our advanced AI-driven platform and all without the middleman in the form of a bank or a credit union. Yet even more importantly, the lending process with TurnKey Lender is not just quick (a typical borrower evaluation and risk assessment take as little as 30 seconds), but also superiorly secure with traditional and alternative borrower evaluation approaches enhanced with proprietary machine learning algorithms. But, a picture is worth a thousand words, right? Let’s take a look at how it works and how you can safely disburse a loan in less than 2 minutes using our platform. So, that was fast! Let’s go over what happened step-by-step. 1. We start in the Loan Origination workspace of the TurnKey Lender solution. Here we can see all the loan applications that were created by either one of your borrowers from the front-office or by your loan originators. The application form is fully customizable, so you can collect the exact borrower data you need. Once you have all the data, the first step is to review an application. Once the loan originator is ready to proceed, press Send for approval. TurnKey Lender allows for work with multiple credit products that follow different business rules. For example, you can offer personal, SME, and secured loans from a single portal and they still will be sorted in an orderly manner. If it’s a secured loan, it will go to the Сollateral workplace. In this case, it is a personal unsecured loan, so it goes straight to the Underwriting workspace. TurnKey Lender uses integrations with credit bureaus and proprietary AI-driven technology to instantly evaluate the borrower’s profile and the loan application. An advanced scorecard and meticulously adjusted decisioning rules come built-in with the system. In addition, you can fully customize both to meet your business needs. 2. Next up the underwriter reviews the application approved by the loan originator, gauges credit risks (evaluated by the system), and if they see that the reward outweighs the risks, clicks Approve. If the loan application strikes a match with the Systems’ or your own decisioning rules, it can be filtered out automatically or you will get a warning. If an underwriter greenlights the application, they click the big, green Approve button. 3. The application then moves forward to the Servicing workspace. In the Servicing workplace, the lender easily disburses funds (both manually (in the branch) or digitally, given that they’ve integrated their TurnKey Lender portal with a payment provider of choice). That’s all, you have safely dispursed a loan in less than two minutes. It’s that simple. The loan is processed, analyzed, evaluated and disbursed usually with extra time to spare. Want to learn more? Reach out to our team for a detailed demo tailored to your business!
Lending Approval Process: Keeping Pace with Next Gen Borrowers, Part Two
In the first part of the article we discussed how the Generation Z borrowers are changing the lending industry. Next, we would like to elaborate on how these demographic differences should change the way that lenders do business.
Lending Approval Process: Keeping Pace with Next Gen Borrowers, Part One
There’s a changing of the guard, but it’s not at the palace. Millennials are pushing Baby Boomers out of the top spot for most coveted consumer demographic as this latter group ages and shrinks in size.
How to Face the Loan Decisioning Challenges of Today With Automation Solutions
To make it in today’s lending industry, your loan decisioning process has to be quick, low-risk, and accurate. It’s one of those crucial elements that either make or break a lending business. Decisioning can take days, rely on outdated rules, and scorecards or it can be powered by unorthodox data sources and analysis approaches and allow new-era lenders to compete and outperform large-scale rivals. The choice is yours.Â
How to Process Loan Applications and Approve More Loans Faster
Consumers choose speed and convenience over price, even when it comes to their finances. That’s why successful lenders strive to deliver instant approvals, and 1-day funds transfers. They’re training borrowers to expect quick action with every application. Can your lending operation approve loans at warp speed, without sacrificing credit quality?
Borrower Identification in Lending – All the Things You Should Pay Attention to
Proper borrower identification is a crucial part of any lending operation’s customer due diligence. No matter the jurisdiction, taking care of borrower identification safely and accurately will have an enormous impact on regulatory compliance as well as the overall portfolio health.
One Day Funding – The New Norm in Digital Lending (How to Adjust)
Consumers don’t love technology. They love the speed and convenience that technology delivers. Digital lenders who capture the lion’s share of new loans in today’s fiercely competitive marketplace, do so by minimizing a metric called time-to-funding. They regularly grant access-to-funds within 24 hours after the applicant clicks the submit button. Is your lending infrastructure up to the challenge?
Why Scoring Model Is What Makes or Breaks a Lending Business
No credit scoring model will be able to tell you with a 100% certainty whether a borrower will return the funds or not. But for the lack of a better system, lenders rely on the existing models, use alternative ones, a combination of the two or develop their own, proprietary algorithms. The reliability and accuracy of the credit scoring model is the gatekeeper of your lending business. It’s what determines how much business you’ll get and how profitable it’ll be.
Onboarding for Alternative Lenders Is Like a First Date, It Pays to Get It Right
Your primary goal as an alternative lender is to maximize portfolio profits, and the first critical step in the process is onboarding. It’s like a first date. It sets the stage for the entire relationship. You can use automation software to gain process efficiencies, but it takes enthusiasm and creativity to truly engage the new borrower. Finance industry analysts say it’s an investment that pays back in spades.