Using AI to outperform competition in Australia’s consumer lending space

Background

Magic Finance is a consumer lender in Australia that came into the market in 2021 to provide small easily accessible loans online from a modern intuitive interface. Australia’s credit space is saturated with over 10,000 lenders working in a regulated market. To succeed, Magic Finance had to provide borrowers with outstanding user experience and better credit terms.  

Challenge 

Magic Finance needed a modern cloud-based platform to run all its operations from to achieve the company’s goals and outperform its competition. The team was looking for a platform  

• That automated all of lending from one place  
• Capable of integrating with local payment processors, KYC services, and data providers 
• Configurable design for white labeling of the software 
• Ability to configure and deploy new credit products fast  

Magic Finance chose TurnKey Lender to automate their entire lending process. The key differentiators that made TurnKey Lender stand out were: 

• Time-to-market and the end-to-end nature of the Turnkey Lender platform 
• Despite being ready-to-use, it’s not rigid. Through API integration it met the unique functionality needs. 
• Cost-effectiveness compared to other solutions. 

Solution 

TurnKey Lender platform automates credit products, decisioning, origination, servicing, payments, collection, and reporting for Magic Finance. Overall consumer loans in Australia are very similar to many other markets so TurnKey Lender Standard’s functionality was able to meet the client’s needs out-of-the-box.  

To account for local business processes and regulations, TurnKey Lender integrated with local data providers, payment processors, and other relevant services.  Some of the key integrations that allow Magic Finance smooth digital user experience and meaningful automation include 

• Green ID verification – allows instant verification of customer documents.   
• illion Bank Statement verification – custom scoring and decision rules were implemented to analyze Australian bank statement data which is received through this integration.   
• Zepto KYC-Trusted – this integration allowed to realize an advanced payment processing process compliant with local KYC requirements.  

Results

Magic Finance used TurnKey Lender Standard from the start and relies on the platform to automate and unify all the processes related to lending. The solutions allows Magic Finance to: 

• Cut credit risks, thanks to AI-driven credit scoring.    
• Eliminate unnecessary paperwork and unnecessary steps throughout the lending process.   
• Reduce operational cost of running a lending business.     

• Get rid of any human error in the entire crediting process.   
• Reduce the cost and time-to-market of launching new credit products.   
• Unify all of loan management tasks in one end-to-end platform.