Lend.In Recognized as the Top Vendor in 'Emerging Category' in the Commercial Loan Origination Report by Aite Group
In an ever-changing environment, enterprises seek to attain some sort of stability. A strong foundation ensures longevity for any enterprise. The key to a strong foundation is using the correct set of building blocks that set the tone for the enterprise ground up.
A credit assessment model serves to decisively break down the level of risk a borrower’s portfolio brings. It enables a lending institution to execute and coordinate blacklists and discover varying levels of fraudulent activity before an asset is deemed to be “stressed”. Digital or Not, a generic Credit Assessment Model (CAM) should have the following components:
Meet Ayushi, a 35 year old mother of 2, with a steady income and secure job working at the cash register of a store. Her character is commendable and she is often recommended by her colleagues based on her superior work ethic and integrity. Ayushi’s aim is to provide her children with opportunities she never had, especially an education that will help them be successful.Now here’s the catch, Ayushi doesn’t have any formal banking history, and burdened with her children’s fees to be paid she heads to a local pawn shop and pawns her jewellery in return for a loan that comes at a high interest rate of 40%. Like Ayushi, there are many hardworking people out there who, due to their lack of credit history, are denied loans that could help them better their lives. Can alternative lending practises help these people who find it hard to go through tedious processes and background check only to come out failing?
This digital era that we live in has transformed the age old financial and banking services into what we now call Financial Technology – Fintech. Fintech has been around for a while now in the from of mobile wallets, online banking, virtual buying of stocks, and digital lending. The past few years have brought a plethora of new market disruptors that are rapidly displacing traditional e-commerce providers. New FinTech companies offer better services, new innovative tech, seamless customer experience, and much more for the consumer.