The SME Mobile Lending is a digital journey that allows an SMESmall and mid-size enterprises are businesses that maintain revenues, assets or a number of employees below a certain threshold depending on the country. to access financing solutions in minutes. It is an end-to-end loan origination process, fully automated. This accelerator caters to the needs of digitization for financial institutions, commercial banks, credit unions, and investment banks. Any institution that is looking for a digital conversion benefits from the usage of such digital technology that is fast-track and with real-time answers.
The solution is addressed to SMEs that have a small market capitalization and present low-risk products. Additionally, the SME itself must not be part of a group, and the stakeholders themselves must not be part of other stakeholders groups. To access the financing solution, only a legal representative of the SME can apply for the loan. The SME must be a new customer to the financial institution. During this self-service journey, the representative goes through two steps: an instant decision in principleIt offers an easy way for customers to view product requirements before advancing to the next step in the digital journey. followed by the application for the approval. The process doesn’t require the user to visit a branch or talk to the bank over the phone, it is entirely done within the application with no interaction unless demanded by the customer. No paper is printed or required to complete the process.
Firstly, it identifies the needs of the customer through hyper-personalization, followed by the configuration for the amount and period with a simulation. The offering takes into account all the inputted data of the customer. Based on the amount and period requested, the system filters the products the institution has.
Shortly after, the company is identified, as well as the representative who is applying for the loan. Within a few minutes, the solution enables a loan origination service that informs the applicant if they qualify for the desired amount and period. This accelerator offers different functionalities for collecting and analyzing the customer’s financial data that improve time to yes (TTY) and crucially, time to cash (TTC).
The solution is built using components that are easy to include/ exclude from the journey. For example, a financial institution can define specific rules for the client validation steps (OTP’s required, level of KYC needed). The digital journey is built for mobile mode with a user interface easily fitted for smaller screens, such as iOS 15.2 and Android 11. The journey can be used in desktop mode as well on Windows 10. It can be exposed in multiple environments such as websites, mobile applications, and more.
Business Pain Points
The SME Mobile Lending digital journey by FintechOS is aimed at resolving some of the pain points when applying for a loan:
- lack of personalization with rigid product offerings;
- cost of service;
- creating a loan request;
- manual verification of financial data from various sources;
- requires documents to verify identity;
- long time to find out if you as a customer qualify for the loan.
The SME Mobile Lending journey by FintechOS solves these pain points by offering a fully digital seamless way for your customers to receive a loan.
Advantages of the SME Mobile Lending
Here are some of the major benefits the solution offers through FintechOS:
- A higher level of personalization and attention to detail. This feature makes financial institutions a reliable partner for the long run and have flexible solutions that meet the difficult landscape that small business owners.
- Tailored Products. Custom products are included in the accelerator with pre-loaded filters and ranking systems. The predefined products are a great place to start, but if for some reason you need further configurations, using our Configuring the Banking Products, financial institutions have limitless possibilities to modify, extend or define new custom offerings for their customers.
- Digital. In the continuously changing market, lenders need to be able to make decisions quickly and accurately to help their customers and minimize risk. The registration is 100% digital and easy to modify using Innovation Studio. The result is a fully functional loan, personalized to what the customer had selected.
- Digital and Instant Payment. The loan is disbursed after the customer and all the business partners sign the contract.
- Time-efficient. The process has only a few steps to find out if you are qualified.
- Personalized with advanced formula for calculation. This digital journey is highly configurable using micro-services such as the Configuring the Formulas processor that offers an intricate method to build a formula that can calculate the monthly payment, DTIThe Debt-to-Income ratio (DTI) is a personal indicator of a good balance between debt and income. Monthly debt payment amount / Monthly gross amount (before taxes and other deductions)., and more.
- Integrations. The solution leverages third-party data seamlessly and enables critical data to be collected (KYC process is done using Companies House integration) and decisions upon (fetching credit scores from Experian). Pre-integrations with third-parties are available, but can be easily modified to accommodate the financial institution’s current providers for scoring, risk management, KYC, security or any other service they need.
- Unassisted. The journey does not require the assistance of a bank employee for the SME to apply for a loan. It can be done by any representative with legal rights.