Vasyl Soloshchuk
CEO at INSART
17 November 2021

LaaS/LOS can access small business clients when embedding their platforms to marketplaces

The recent PwC research says that there are gaps that lending tech platforms may fill in to adjust to the market, including credit reporting and analytics, AI scoring, accounting, fraud detection, and cash flow management. You won’t necessarily need to build your infrastructure since you can rely on reliable integration partners and launch immediately. Alternative lending firms would typically have to fill gaps in the technology infrastructure through integration with multiple solutions.

“I think that [integrations are] going to be a huge competitive advantage in the future. As we onboard more customers and people request different types of integrations, automation – both data and data entry – will be driving more of that functionality”, says Josh Youngblood, the co-founder, and CEO of Kumo Technology and Alfred Tech.

Grow your business with LaaS/LOS

  • Accounting software helps lending businesses to automate routine and error-prone processes. You and your clients’ firms can avoid many risks just by integrating reliable accounting partners. Never miss a payment with accounting systems in your lending platform.
  • AI credit score evaluation isn’t magic but science. Algorithms can make cumbersome smart analyses in seconds. ML and AI will soon enter the lending industry. Jump into this trend today to take the lead.
  • Lending solutions are subject to increased security standards when it comes to storing and accessing information about clients, their assets, credit scores, and other sensitive information. If you look to integrate а сloud storage solutions quickly, you need to have relevant hands-on experience.
At INSART, we take the clients’ information security seriously. We have practical expertise in integrating secure storage solutions for our clients from the financial scene.
  • Credit reporting is announced to be one of the most prominent growth points for alternative lenders by PwC. We’ve gathered many features that may help lending companies attract and retain customers.

Download our guide and find the insights that may lead you to the next height.

  • Document management systems allow the storage and sharing of documents across the whole lending cycle. Lending is paper-intensive and time-consuming. When you don’t use any document management tools, it appears a headache to gather all the docs across various institutions and form a loan package. As a result, clients may face delays and miscommunication issues. You can enhance your lending platform by building a tailored document management system or integrating an existing solution.
  • In a digitalization era, the risk of lending fraud rises. How to ensure that your lending solution is up to date to combat the latest scam schemas? Integrating verification and authorization modules into your lending platform will decrease the risk of encountering scams.
  • The ability to accept payments any way your clients want to pay you is vitally important to all lenders. More payment options translate into increased profits for you. 
  • Cash flow financing allows making a loan to a company by the company’s expected cash flows. It’s helpful to companies that generate significant amounts of cash from their sales but don’t have a lot of physical assets. Today the influx of companies is distributed around the world, with no or less physical assets, generating massive cash flows and driving the economy forward. Making it possible for them to get loans, your lending solution will stand out.

Q2 Holdings’ CEO Matt Flake says,

“If you are looking to grow your business and acquire new customers, you’re going to start with technology. You’re not going to say, ‘Where can we put a couple of new branches?’”

According to Thomas Pintelon, Head of Strategy at Capilever, very few banks have a credit origination system that meets these criteria. Banks have already made good progress in increasing the STP level of simple credit products, like consumer credits, but for more complex products there are still a lot of efficiency gains to be found. 

A good credit origination process should also comply with general requirements, which should be inherently baked into the process:

  • One single access point for each user
  • A multi-channel experience
  • Continuous availability (24/7) and tracking