Nonetheless, most financial institutions still can’t meaningfully automate their manual loan origination, loan management, and debt collection processes.   

For established lenders, reimagining the operations of your lending business is a major undertaking, especially considering these factors:

• implementation of the new credit policy  
• transformation and migration of legacy data 
• the need to train staff and educate existing clients 

Luckily, these challenges aren’t unique. Consumer and commercial lenders in 50+ countries use TurnKey Lender to digitize all elements of credit and service ~100 million borrowers.  

But first, would you like to learn how we use AI to automate credit processes for b2b and b2c lenders in 50+ countries?

We’ve asked the company’s CEO and co-founder, Dmytro Voronenko, PhD what established large-scale finance providers need to understand and do to improve the ROI of their lending and banking technology investment. 

How urgent is it for your lending business? 

Over the last several decades, the talk of urgent digital transformation of financial products and services has been ongoing. And the flood of digitalization during the pandemic set new standards for how borrowers want to interact with lenders. 

So how can large-scale consumer and commercial lenders capitalize on the lessons of the embedded lending revolution? 

Dmytro comments: “The embedded finance phenomenon showed traditional and alternative lenders that their place in the marketplace isn’t theirs by default. BNPL trailblazers have paved the way and proven that borrowers are ready to pay a premium for instant, contextualized, and user-friendly digital credit. 

This created a new sense of innovation urgency in the industry, which we’re witnessing right now despite slower overall economic growth. 

At TurnKey Lender, we’ve been pushing for AI-powered end-to-end lending automation since 2014. Recent years have shown that even conservative financial institutions have become eager to use a powerful SaaS like TurnKey Lender instead of their legacy homemade infrastructures.” 

How do large-scale lenders adapt  

The market has been buzzing about the embedded lending revolution for the last few years, but what changes have happened to the thinking of the traditional finance providers? 

Dmytro Voronenko comments: “We see more and more traditional finance providers, both consumer and commercial, experimenting and innovating to stand out. For example, every day, more lenders start using segment-specific alternative credit scoring data for automatic low-risk loan decisions. 

In short, large-scale finance providers have come to terms with the digital-first reality, and right now, we’re going through a massive shift in the marketplace as they transform their operations. And, of course, we’re happy to help them do so correctly.” 

What’s stopping 70% of lending businesses? 

Despite the clear benefits of digital transformation, McKinsey & Company reports that only 30% of banks have successfully transformed digitally. If the digital transformation of credit has become so commonplace, what is stopping the rest? 

Dmytro explains: “Making the jump to a new digital infrastructure is scary, even when you know it’s necessary. Many of the remaining 70% also tried going digital but failed. Most often due to a poor strategy and the wrong technological choices. 

Every financial institution understands that managing lending processes manually from a branch is not sustainable when more competitors offer instant digital approvals online each day. 

So what stops them now is a lack of digital expertise and fear of failure in the environment where they may only have one chance to retain their audience in the digital world. In many cases, there’s also resistance from internal stakeholders used to working the old way. 

That said, the transition to a digital-first process is inevitable, and every day of delay costs the business another fraction of its user base. That is why McKinsey & Company, Deloitte, KPMG, and other prominent companies recommend prioritizing digital efforts now more than ever. As proven by independent reviews and ratings, the TurnKey Lender Platform has all the necessary capabilities to make the digital transformation of the lending business a whopping success.”  

Why TurnKey Lender to digitize your lending process 

TurnKey Lender platform automates complex lending processes for creditors worldwide and is recognized as a leading automation provider for consumer and commercial finance providers by researchers at IDC, Gartner and others. For example, here’s one of the IDC reports with TurnKey Lender leading the space in Consumer Lending Decisioning Platforms.

Some of the things that make us stand out include

• End-to-end loan lifecycle management – TurnKey Lender offers robust automation of complex lending processes including loan origination, servicing, and collection, tailor-fit for the requirements large-scale operations demanding efficiency and precision. 
• Advanced, customizable credit scoring – using traditional and alternative data in our scorecards, we integrate proprietary AI algorithms for credit assessment, allowing for instant decisioning and approval even in diverse portfolios. It accommodates varied risk profiles and provides customizable scoring models to cater to specific lending criteria. 
• Streamlined implementation and integration: Designed for easy integration with existing systems, TurnKey Lender simplifies migration. The user-friendly interfaces and simplified workflows reduce the learning curve for staff, essential for large-scale organizations undergoing digital transformation. 
• Scalable solution for diverse portfolios: Tailored to handle high volumes and varied types of credit products within one platform, making it ideal for large-scale lenders seeking to expand or diversify their product offerings without compromising on operational integrity and rising credit risk. 
• Proven track record with major financial institutions: Demonstrated product-market fit is reflected in the efficiency and profitability of lending operations in over 50 countries using TurnKey Lender as well as praise from the industry’s researchers and analysts.  

What TurnKey Lender lets you do 

• Enhance the user experience by implementing real-time application processing and empower borrowers with fully digital loan management and communications.  
• Grow your portfolios and volume of transactions efficiently while reducing operational costs. 
• Expand your reach, tapping into new markets and diversifying the customer base. 
• Remain competitive by continuously developing innovative credit products that cater to evolving consumer needs and preferences. 
• Reduce credit risk and operational costs with fully automated credit scoring powered by traditional and alternative scoring data. 

Final thoughts 

Traditional B2C and B2B finance providers must learn from digital-first lending products to stay relevant and competitive. The shift to digital is not just inevitable but essential for growth and sustainability in the current financial landscape. TurnKey Lender offers a pathway to this transformation, providing the tools and support necessary for a successful transition. 

For executives in financial institutions apprehensive about digital transformation, the message is clear: the future is digital, and the time to act is now. Reach out to explore how TurnKey Lender can guide your institution through this journey. 

Even though these new, innovative tools are now accessible to companies in nearly every industry, some organizations have only implemented a few of them.

Auto dealerships are a prime example of this.

The car buying process, even when taking place at a mostly modernized company, still feels like it did ten years ago. Sitting down at a sales desk, weighting handwritten numbers, waiting while the salesperson gets up to “ask” their supervisor – sound familiar?

But where vehicle buyers can often get the most impatient is the loan approval process, where even the most forward-thinking auto dealers are still relying on outdated and sluggish procedures and borrower evaluation approaches that take much longer than they should in the modern business environment.

Thankfully, it’s now incredibly simple and affordable for auto dealers to digitize their loan application process, bringing their customer experience into the modern age and – in the process – winning and keeping more clients.

An industry propped up by borrowers

Auto loans are a massive market. The simple truth is that the vast majority of car shoppers end up financing their vehicles.

More than 85% of automobile purchases are financed. In just the United States alone, there are more than $1 trillion in outstanding auto loans.

Borrowing funds to pay for a vehicle purchase is the norm, and it’s not going to shift anytime soon.

And financial institutions aren’t the ones generating all the profit from America’s addiction to auto loans, since your average car dealership racks up more than 40% of its gross profit by operating a lending desk connected to banks, credit unions, and direct online lenders.

The problem is that dealerships have to share the profits generated from their buyers’ auto loans with the banks they work with.

But, in the modern era of cutting-edge and instantaneous software solutions, why are dealerships still partnering with banks to help car buyers finance their purchases (and sharing profits along the way)?

Wouldn’t it be more profitable to take care of all lending in-house?

The answer is yes.

And not only would an in-house auto financing feature help businesses retain more of their revenues, it also helps seal the deal with impatient or on-the-fence car shoppers.

[related-solutions]

Is my loan approved yet?

Even today, most auto lending application procedures take a while. Buyers take notice.

The unfortunate truth is that many car dealerships out there are relying on outdated methods to get their buyers approved for an auto loan – from manually entering information into spreadsheets to waiting for external borrower assessments to be completed.

Not only does this slow things down considerably, the old way of doing things is significantly more prone to human error.

Even worse, an outdated auto loan approval system can cause impatient customers to let their eyes start to wander – to other lenders, that is. People even start shopping around on their smartphones while they’re still in the dealership, and can easily find an instant quote and approval while the dealer is still walking across the room.

Especially since modern consumers have grown accustomed to instant decisions and quick purchases, auto dealers shouldn’t be surprised that their sluggish loan approval process has them considering a quicker option.

The next era of automated, end-to-end auto financing

Thankfully, recent advances in software technology have enabled innovation in the area of auto financing. Now, it’s entirely possible for auto dealers to ditch their relationships with banks and manage their lending programs from start to finish – including quick approvals and out-of-the-box automation.

TurnKey Lender’s auto financing software is tailor-made for car dealer businesses, and provides a simple, end-to-end loan management solution that automates the entire loan lifecycle as well as specific phases of the lending process.

The product is ready to use out of the box, and can be launched in a dealership of any size in a matter of days – with little to no learning curve for both your sales team and potential vehicle buyers.

TurnKey Lender’s auto financing solution fully automates borrower risk analysis, loan origination, underwriting, collateral management, debt collection, loan servicing and the vast majority of a dealership’s lending reporting tasks. 

Not only does it empower dealerships to automate their entire lending process from start to finish, the solution integrates with credit bureaus, payment providers, VIN decoding solutions and e-signature services to make the loan application process a breeze for all potential buyers.

From bad credit to thin credit, used cars and new models, TurnKey Lender’s user-friendly auto lending software makes the entire experience smooth and effortless for everyone involved – and potential borrowers won’t even consider looking elsewhere for their auto loan.

Initial SaaS filtering criteria 

There are many loan origination systems. And most of them don’t meet the lender’s most basic Software-as-a Service (SaaS) requirements.  

So, before we go into the questions specific to loan origination solutions, here are the general quality assurance criteria to consider with any such core technology choice. 

• Pricing structure – While this applies to all SaaS, in finance many vendors charge extra depending on user count, portfolio growth, hidden fees, and contract length.  
• Cybersecurity – A fancy user interface and quick load speed is good as long as your (and your client’s) security isn’t compromised. Ensuring best practices in cybersecurity is paramount. 
• Regular updates – SaaS solutions need to update several times a year to align with upcoming trends, industry standards and shifts. It’s the only way to address business needs long-term while maintaining interoperability with the newest technology. 
• Support & training – your LOS vendor needs to provide efficient training and quick tech support to ensure you’re seen as a reliable finance provider.  

• Track record – don’t hesitate to ask for direct references, not to mention relevant success stories to gain valuable business intel and see how the LOS vendor treats their customers. 

These criteria are crucial, but it takes a little more to navigate the loan origination software waters.  

Loan origination software selection must-haves  

1. Loan application flow configurability  

• A hard-coded, rigid application flow won’t let you capture market opportunities. Financing landscape changes and lenders need to stay agile to address borrowers’ challenges faster and better than rivals. 

• With TurnKey Lender you can quickly update the loan application steps to collect new required data, get legal e-signatures, manage document templates, include guarantors, secured assets evaluation and more. 

2. Real-time application processing 

• Borrowers expect to get approved for a loan as quickly as they checkout in their online store. It’s impossible with manual application processing. This is why all of scoring and loan decisioning heavy lifting needs to be done on autopilot. 

• TurnKey Lender processes scoring data real-time with award-winning Decision Engine offering in-depth control over scoring criteria and decision rules. This offers borrowers instant clarity, reduces drop-offs, and amplifies satisfaction as an edge in a competitive market. 

3. Scalability to handle growing portfolios 

• Few things hamper growth more than a frozen loading screen, repeated human error, and data losses that happen when a loan origination system doesn’t scale alongside your company. Make sure your vendor can handle surging scoring needs and transaction volumes while keeping the load off staff. 

• TurnKey Lender’s LOS is used by B2C and B2B lenders globally to work with ~100 million borrowers. With over 90% of all lending processes completely automated, human error and credit risk and minimized while ensuring speed. 

4. Innovative credit product development 

• Stagnancy in a fast-evolving credit market can be fatal. An inflexible LOS system eats up your time and disables innovation which requires speed in rolling out new offers and adjusting to borrower’s needs. 

• TurnKey Lender allows creditors to be as dynamic as they need. It takes minutes to create, test and launch a new, fully automated credit product which meets your exact requirements in terms of fees, schedule, terms, regions, and other criteria. 

5. Credit scoring accuracy and flexibility 

• Simplistic credit scoring directly cuts the return on every dollar you invest. Lenders need an LOS that takes into account all relevant up-to-date borrower data to make better loan decisions faster.  

• TurnKey Lender’s award-winning Decision Engine uses AI to sort through millions of data points instantly and give you an automatic decision or a recommendation you can rely on. This and the elimination of operational bottlenecks lets you reach a wider audience and offer borrowers better terms than competitors.   

6. Keeping up with industry and regulation 

• Outdated SaaS and legacy in-house solutions drain a business with inefficiencies, incompatibility with new tech, human error and poor experience. Make sure your vendor keeps improving your infrastructure while you focus on your portfolio growth.  

• Regular platform updates incorporate best practices and findings from B2B and B2C lending operations using TurnKey Lender in 50+ countries. 

7. Supporting digital credit beyond loan origination 

Fragmented lending solutions lead to errors, higher costs, and inconsistencies in borrower experience. It’s important that your LOS vendor lets you upgrade the system with new features and integrations out of the box. 

TurnKey Lender LOS is a part of end-to-end lending automation infrastructure that covers all elements of consumer and commercial credit. From loan processing and disbursement to servicing, debt collection auditing, and reporting – TurnKey Lender does it all.  

8. Reliable uptime 

Reputation losses withholding, the average cost of downtime for businesses is $5,600 per minute. This means that even a short outage can have a significant financial impact. 

TurnKey Lender reliably delivers a 99%+ uptime, ensuring a seamless cloud-based experience, keeping services online and dependable, no matter where operations are based. 

9. Borrower’s self-management capacity 

Borrowers hate being confused about anything concerning their finances. Intuitive user interface and clear communication make all the difference to the person applying for finance.  

Borrower gets a personalized online loan application process with an instant decision. They can pick their application up and all their lending interactions take place in an intuitive borrower portal. 

10. Time-to-market for initial release and updates 

You need to be able launch credit products, add integrations, and adjust application flows quickly and autonomously. This disqualifies most LOS providers who take months to deliver requested updates due to the software complexities.   

TurnKey Lender comes with pre-configured location- and industry-specific credit calculations, workplaces, and integrations to ensure 3-5 faster time-to-market. Once in place, most lenders start to handle all aspects of credit on their own, but TurnKey Lender Team is constantly at your disposal for any additional features configuration. 

But before we start looking at the specifics, let’s straighten up our vocabulary. Artificial Intelligence (AI) is quite a vague term. Feels like lately it’s used for marketing reasons far more commonly than for solving actual problems. Some of the more specific niches of AI that can apply to lending include machine learning, deep learning, natural language processing (NLP), and image recognition.

AI in credit decisioning and underwriting

Credit scoring and underwriting are still some of the biggest challenges and risk sources for most lending operations. That is why TurnKey Lender focused its efforts on these two domains first. 

The end-to-end lending system comes with all the functionality one needs to run a crediting business of pretty much any kind. And the benefits of deploying TurnKey Lender’s AI-driven solutions manifest both for the lender and the borrower. There’s no guesswork involved in the credit decisioning anymore, even when there’s virtually no data about the borrower. 

Thanks to the sophisticated self-learning algorithms, lending businesses make faster and more accurate decisions based on the proprietary scoring technologies. Now the application can be analyzed and the loan issued to the right people within minutes where it used to take days. Besides, lenders can tap into previously underserved or unserved demographics — the people who may have been overlooked in the past. 

Lending operations tend to process large amounts of consumer data which remained unused up until recently. This left space for human error, lengthy loan approval process, and weak fraud protection. TurnKey Lender solved this problem with advanced self-learning algorithms. They analyze large sets of consumer data, learn the behavior patterns, and make risk evaluations and credit scoring based on this data.

As mentioned above, TurnKey Lender mainly uses machine learning for credit decisioning and risk evaluation. TurnKey Lender’s CEO, Dmitry Voronenko (Ph.D. in Artificial Intelligence), guided the development of the system. He has put together a team of scientists that did machine learning and scoring projects for Boeing, LG, Bank of America, and Stanford University in the past. 

They utilized deep neural networks with self-learning scoring models based on both traditional and alternative evaluation approaches and data sources. The system learns to use prediction, classification, clustering, and association to process loan applications through user data. 

For safety purposes, the system doesn’t just use the data client is providing but also pulls the available information from various sources (like the credit bureaus and social networks). TurnKey Lender’s algorithms process the data and then present it in the form of a risk evaluation. 

Credit decisions backed by psychology and AI

Even though the credit decisioing that comes built-in with the TurnKey Lender’s platform presents an excellent usage of AI on its own, the team didn’t stop there. The algorithms and models are polished and upgraded to account for more factors and learn faster with each new release. The experience the team got working with clients from all over the world led it to create a unique, standalone, product called TurnKey Lender Psychometrics. 

AI in collections

Leveraging AI to streamline the collections process makes it drastically more effective as proven by the TurnKey Lender’s AI-driven system. Every borrower can have a personal collectability score based on all the data the platform knows about them so lenders can predict payment defaults before they occur, enabling preemptive action to mitigate risk.

The system’s intelligent algorithms analyze borrower behavior, payment histories, and financial health indicators to prioritize collections efforts, focusing on high-risk cases and devising personalized communication strategies. This not only enhances the efficiency of collections teams but also improves the borrower experience by offering tailored solutions for repayment. As a result, lenders witness a significant reduction in delinquencies and an increase in successful recovery rates. TurnKey Lender is making the once-daunting task of loan collections a more manageable, intelligent, and customer-friendly operation.

Regulatory compliance and AI in lending

Problems with compliance cost some businesses billions. So even though implementing end-of-the-line AI into your compliance workflow is costly, it’s still way cheaper than having expenses required for a bigger staff of compliance officers. Not to mention the cost of running a higher risk of getting fined.

Of course, AI for compliance relies heavily on specific jurisdictions and the law differences. But keep in mind that some things are universal. For example, no matter where you work, you got to fight identity fraud and any unlawful activities. In addition to regulations, weeding out wrongdoers is in the best interests of any lender. 

As of now, you still need to have proper compliance blueprint and human involvement in the compliance process. But you can implement AI software to address the following:

• Regulatory updates – tracking and monitoring 
• Borrower identification
• Stress testing of the system
• Identity fraud

AI use cases for lending security 

Cybersecurity is an endless race between fraudsters and white-hat developers who struggle to create protected systems. And the good guys sometimes lose. Big time. 

Source: CSO

The thing about data security is that the software requires regular updates and maintenance to combat evolving threats. That is why self-teaching AI already plays a massive role in preventing and fighting cybercrime. 

An important innovation here is, of course, image recognition technology. For example, JPMorgan Chase’s tech already surpasses humans abilities. Not to mention, saves the company a whopping 360,000 hours of work. The technology is at a stage when accurate image recognition isn’t something special. It’s a rather mundane thing you can (and probably should) have in place in a serious lending business. 

The specific parts of the security process that can benefit from AI implementation are:

• Spam filter applications
• Network intrusion detection and prevention
• Fraud detection
• Credit scoring and next-best offers
• Botnet detection
• User authentication

Intelligent self-learning software can see patterns and help lending business eliminate security threats. And not just that. 

Due to strict regulations and high sensitivity of data, financial businesses tend to be very cautious, not willing to take any undue risks. So other than protecting from the dangers, smart technology can also help reduce the number of false positives, thus increasing profits. 

A study by Javelin Strategy shows that false positives (wrongly rejected legitimate transactions) account for $118 billions of dollars in annual losses. And that’s not counting the potential lost business that won’t come back after being rejected once. Machine learning can help address that by learning about your customers and approving more of the safe accounts.

Accounting and AI in lending

As per the article Jean Baptiste Su wrote for Forbes, “, accounting tasks including tax, payroll, audits, and banking will be fully automated using AI-based technologies, which will disrupt the accounting industry.” 

And even though we’re no fans of disruption, there’s no stopping technology. And the best business can do is embrace change and enjoy the benefits of automated processes.

AI-driven accounting software for lenders can analyze receipts and invoices extracting information like VAT identification numbers from it in the form of data points. Then it may pass the data to the reporting module of a platform like TurnKey Lender. It, in turn, will help with regulatory compliance. 

Keep in mind, that generally, this software learns continuously. And over time, it will handle each client with more insight and accuracy and extract more information about borrowers faster. 

Streamlining user experience through AI

The automation is here to stay, but this doesn’t mean that your users don’t expect to receive a personal experience. Live chat solutions and various bots powered by AI can help you provide instant quality support 24/7 and only escalate complex issues to a real person. So you cut costs while improving service. 

If you collect the right data and feed it to the right algorithms, you can automatically offer tailored loans and plans based for each client. Another approach would be to do the little things like greet them by name in their language, adjust the offering on the website based on their location, etc. Your users will be thankful for personalization of experience, products, and services.

Funding insights in P2P with AI

We’ve already covered how big a phenomenon peer-to-peer lending is right now. And no wonder, since with the right wealth management, it can be extremely beneficial both for the investor and the borrower. But making money of investing is hard unless you know what you’re doing. That’s where investors can benefit from choosing a P2P platform that runs on TurnKey Lender. 

We use the same AI-driven credit decisioning techniques to evaluate borrowers who opt-in for funds within our P2P platform. This way, AI helps investors make safer and more beneficial decisions. In this scenario, the investor only deals with one metric – borrower evaluation. And for the lender everything from filling out the form for the first time to collection and payment reports is automatic.

Next steps

Real and practical AI applications aren’t matters of science fiction anymore. This software already brings real value to the business owners. And in the lending space, TurnKey Lender’s intelligent software leads the race by example. 

Biggest benefits AI brings into lending space are:

• Faster and more accurate decision-making
• Increased sales through repeated business
• Reduced operational costs
• Identification of potential defaulters
• Increased speed of work processes
• Boosted operational efficiency
• Reduction of operational costs
• Simplified regulatory compliance process
• Streamlined and personal customer experience
• Easier analysis of large volumes of data 

TurnKey Lender easily integrates with other solutions. If a business needs to implement AI automation of some processes, our team can take care of that. 

But TurnKey Lender isn’t just about AI. On a higher level, we offer an all-in-one intelligent platform that automates the entire lending process. The solution includes functionality that covers loan origination, underwriting, collateral management, borrower evaluation, risk management, debt collection, loan servicing, reporting, supervision, and regulatory compliance. The meaningful use of deep neural networks and machine learning combined with big data is what makes TurnKey Lender stand out.  

To see it in action, get a free TurnKey Lender trial or schedule a demo and see exactly why we’re the best in the business. 

The hunt for digital-banking benchmarks

One measure with broad acceptance is ROI, short for return on investment, which gauges the financial success of a particular investment initiative, comparing its financial return to its financial cost. It’s calculated by dividing the net profit of a project by its total expense. 

For some organizations, this measure is too broad because it may “reflect expenses that aren’t consistently impacted by, or substantially supportive to, the project under review,” says Dmitry Voronenko, CEO and co-founder of digital-banking tech maker TurnKey Lender. To skirt this problem, many businesses look to KPIs, or key performance indicators. These are metrics the organization considers vital to achieving its goals, derived from applying ROI calculations to the expense of specific business functions that contribute to (or are impacted by) the project in question. In short, adds Voronenko, “the KPIs of a project are business-specific values that provide a sharper measure of how successful a company is in reaching its strategic objectives rather than ROI alone.” 

But first, wanted to check if you (or your staff) would like this case study of how TurnKey Lender helped National Iron Bank transform their commercial lending process.

What’s the main value of KPIs? For most executives, its value is in supporting (and helping to shape) vital business objectives. It’s also important for managing staff performance and strengthening employee morale. KPIs help executives understand what’s “working” and what isn’t as aid to making strategic and tactical adjustments as needed, potentially shaping factors such as resource allocation and hiring plans . 

Examples of KPIs tracked by banks include everything from revenue, expenses and operating profit to findings around sales, profits and assets under management on a per-employee basis.

In fact though, the number of KPIs is virtually limitless — especially for retail banks, which can engender hundreds of key indicators linked to the impact of expenses, investments, cash flows, debt, and customer service. For many bankers struggling to find ways to measure the success of newly popular digital-banking services, the sheer number of considerations may obscure the view.

Success metrics for online banking 

To help them out of this predicament, here are 10 KPIs banks can use to help them measure the effectiveness of their digital offerings. 

1. Functionality. Banking applications should enable anything that can be done in person at a branch. KPIs for apps shed light on what works and doesn’t in online interfaces. 
2. Activity. Tracking — whether daily, weekly or monthly — how customers use a platform can lead to user-experience improvements and positive word-of-mouth.
3. Retention. Of course happily engaged digital-banking customers are also apt to stick around. Your retention rate for digital customers — measured by return business or satisfaction scores from surveys — can tell a tale of engagement over longer periods than measures of activity can usually convey 
4. Net Promoter Score. Another, arguably wonkier, way to measure long-term growth of your digital-banking operations is an NPS, a way to understand how many of your customers aren’t just happy, but likely to promote services they enjoy to friends and family members. Typically gleaned from surveys, an NPS can help banks understand what it takes to turn customers into active promoters. 
5. Lead Generation. Do your online banking applications introduce customers of one digital service to up- and cross-selling opportunities? Banks with apps that don’t readily introduce customers to ancillary services may be losing business to other providers. 
6. Launch and load times. How long does it take your online-banking apps to load at different times of day, especially during peak hours? Ideally, the interval between click and engagement is brief. Online banking customers are notoriously impatient. Unusually, this is a KPI you can measure with a stopwatch. 
7. Task completion. This is another user-experience metric that measures the rate at which a digital-banking app accomplishes what it’s supposed to for customers. As a KPI, this is a measure of an app’s user-friendliness and ability to deliver. 
8. Abandonment. This is the flip side of task completion. Slow and unintuitive apps can drive customers away before they’ve finished what they set out to accomplish — apply for a loan, say, or add a new payee. In turn this can create not “net promoters” but active “net detractors.” Just as practically, this KPI can point to services design or technology flaws in need of immediate redress. 
9. Preference. Understanding how customers feel about online banking as opposed to in-person banking can point the way to more effective communication strategies that take such preferences into account when promoting new or unused services. 
10. ROI. We’ve already touched on this KPI, but it bears repeating. Anything that sheds light on how expense relates to returns from digital banking will tell a tale of comparative engagement. Here, a relative lack of engagement may hint at customer frustration and a need for better apps, not, as it may be tempting to conclude, a lack of interest in digital banking itself. 

“Each KPI should be judged on the merits of the insights it brings,” says TurnKey Lender’s Voronenko. They don’t apply in every digital-banking situation, and your bank or credit union may refer to some that other institutions wouldn’t even consider.”

The overriding point is that KPIs can help banks understand the value of their digital services, according to Voronenko. “And I would add this,” he says. “KPIs have an interesting habit of creating learning cultures grounded in a willingness to test assumptions, challenge norms, and make sure outcomes are net positive for customers, in a pandemic or not.”

Lending business KPI tracking in TurnKey Lender

TurnKey Lender offers integrated end-to-end solutions for crediting and banking processes automation. The system uses machine learning algorithms to collect, process and presents all of the important business performance indicators at a glance in the Reporting workplace. One dashboard lets you get a working understanding of the business’ well-being, analyze the current effectiveness of staff efforts, as well as explore aggregated assets and current portfolio state.

Plus, with the remote work trend being the new normal, it’s critical to be able to clearly see your staff’s performance. The built-in KPI tracking functionality lets you instantly outperform the competitors in terms of quality and accuracy of insights you get about your originators, underwriters, as well as servicing and collateral officers. The evaluation of each employee’s productivity is based on their responsibilities, taking into account numerous relevant factors, and then uses AI to process, cross-reference, and present the data to the lender.

TurnKey Lender’s intelligent SaaS provides you with both a real-time and historical insight into the performance of your lending business. Schedule a personalized demo to see how TurnKey Lender can help your business grow.

Digitalization leaves no industry untouched. In the last decades, lenders, traditional and alternative, have been on the lookout for new technologies to take them ahead of the competition. Software that would make credit decisioning and loan management safer, faster, and cheaper. Naturally, AI has been a focus for most.  

Many of the AI applications are still in the R&D phase, but many are already here and helping real businesses save money and streamline processes. 

But before we start looking at the specifics, let’s straighten up our vocabulary. Artificial Intelligence (AI) is quite a vague term. Feels like lately it’s used for marketing reasons far more commonly than for solving actual problems. Some of the more specific niches of AI that can apply to lending include machine learning, deep learning, natural language processing (NLP), and image recognition.

AI in credit decisioning and underwriting

Credit scoring and underwriting are still some of the biggest challenges and risk sources for most lending operations. That is why TurnKey Lender focused its efforts on these two domains first. 

The end-to-end lending system comes with all the functionality one needs to run a crediting business of pretty much any kind. And the benefits of deploying TurnKey Lender’s AI-driven solutions manifest both for the lender and the borrower. There’s no guesswork involved in the credit decisioning anymore, even when there’s virtually no data about the borrower. 

Thanks to the sophisticated self-learning algorithms, lending businesses make faster and more accurate decisions based on the proprietary scoring technologies. Now the application can be analyzed and the loan issued to the right people within minutes where it used to take days. Besides, lenders can tap into previously underserved or unserved demographics — the people who may have been overlooked in the past. 

Lending operations tend to process large amounts of consumer data which remained unused up until recently. This left space for human error, lengthy loan approval process, and weak fraud protection. TurnKey Lender solved this problem with advanced self-learning algorithms. They analyze large sets of consumer data, learn the behavior patterns, and make risk evaluations and credit scoring based on this data.

As mentioned above, TurnKey Lender mainly uses machine learning for credit decisioning and risk evaluation. TurnKey Lender’s CEO, Dmitry Voronenko (Ph.D. in Artificial Intelligence), guided the development of the system. He has put together a team of scientists that did machine learning and scoring projects for Boeing, LG, Bank of America, and Stanford University in the past. 

They utilized deep neural networks with self-learning scoring models based on both traditional and alternative evaluation approaches and data sources. The system learns to use prediction, classification, clustering, and association to process loan applications through user data. 

For safety purposes, the system doesn’t just use the data client is providing but also pulls the available information from various sources (like the credit bureaus and social networks). TurnKey Lender’s algorithms process the data and then present it in the form of a risk evaluation. 

Credit decisions backed by psychology and AI

Even though the credit decisioing that comes built-in with the TurnKey Lender’s platform presents an excellent usage of AI on its own, the team didn’t stop there. The algorithms and models are polished and upgraded to account for more factors and learn faster with each new release. The experience the team got working with clients from all over the world led it to create a unique, standalone, product called TurnKey Lender Psychometrics. 

It’s an app that uses the original AI-powered decisioning engine as a starting point and enhances it with a psychological evaluation. The test, combined with the deep neural networks which analyze its results, allows to accurately evaluate loan risks and potential borrowers even in cases when there’s no access to their credit history or even bank accounts.

Here are fresh comparisons of TurnKey Lender’s solutions and its closest competitors, nCino and Cloudlending.

Regulatory compliance and AI in lending

Problems with compliance cost some businesses billions. So even though implementing end-of-the-line AI into your compliance workflow is costly, it’s still way cheaper than having expenses required for a bigger staff of compliance officers. Not to mention the cost of running a higher risk of getting fined.

Of course, AI for compliance relies heavily on specific jurisdictions and the law differences. But keep in mind that some things are universal. For example, no matter where you work, you got to fight identity fraud and any unlawful activities. In addition to regulations, weeding out wrongdoers is in the best interests of any lender. 

As of now, you still need to have proper compliance blueprint and human involvement in the compliance process. But you can implement AI software to address the following:

• Regulatory updates – tracking and monitoring 
• Borrower identification
• Stress testing of the system
• Identity fraud

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AI use cases for lending security 

Cybersecurity is an endless race between fraudsters and white-hat developers who struggle to create protected systems. And the good guys sometimes lose. Big time. 

Source: CSO

The thing about data security is that the software requires regular updates and maintenance to combat evolving threats. That is why self-teaching AI already plays a massive role in preventing and fighting cybercrime. 

An important innovation here is, of course, image recognition technology. For example, JPMorgan Chase’s tech already surpasses humans abilities. Not to mention, saves the company a whopping 360,000 hours of work. The technology is at a stage when accurate image recognition isn’t something special. It’s a rather mundane thing you can (and probably should) have in place in a serious lending business. 

The specific parts of the security process that can benefit from AI implementation are:

• Spam filter applications
• Network intrusion detection and prevention
• Fraud detection
• Credit scoring and next-best offers
• Botnet detection
• User authentication

Intelligent self-learning software can see patterns and help lending business eliminate security threats. And not just that. 

Due to strict regulations and high sensitivity of data, financial businesses tend to be very cautious, not willing to take any undue risks. So other than protecting from the dangers, smart technology can also help reduce the number of false positives, thus increasing profits. 

A 2015 study by Javelin Strategy shows that false positives (wrongly rejected legitimate transactions) account for $118 billions of dollars in annual losses. And that’s not counting the potential lost business that won’t come back after being rejected once. Machine learning can help address that by learning about your customers and approving more of the safe accounts.

Accounting and AI in lending

As per the article Jean Baptiste Su wrote for Forbes, “…by 2020, accounting tasks including tax, payroll, audits, and banking will be fully automated using AI-based technologies, which will disrupt the accounting industry.” 

And even though we’re no fans of disruption, there’s no stopping technology. And the best business can do is embrace change and enjoy the benefits of automated processes.

AI-driven accounting software for lenders can analyze receipts and invoices extracting information like VAT identification numbers from it in the form of data points. Then it may pass the data to the reporting module of a platform like TurnKey Lender. It, in turn, will help with regulatory compliance. 

Keep in mind, that generally, this software learns continuously. And over time, it will handle each client with more insight and accuracy and extract more information about borrowers faster. 

Streamlining user experience through AI

The automation is here to stay, but this doesn’t mean that your users don’t expect to receive a personal experience. Live chat solutions and various bots powered by AI can help you provide instant quality support 24/7 and only escalate complex issues to a real person. So you cut costs while improving service. 

If you collect the right data and feed it to the right algorithms, you can automatically offer tailored loans and plans based for each client. Another approach would be to do the little things like greet them by name in their language, adjust the offering on the website based on their location, etc. Your users will be thankful for personalization of experience, products, and services.

Funding insights in P2P with AI

We’ve already covered how big a phenomenon peer-to-peer lending is right now. And no wonder, since with the right wealth management, it can be extremely beneficial both for the investor and the borrower. But making money of investing is hard unless you know what you’re doing. That’s where investors can benefit from choosing a P2P platform that runs on TurnKey Lender. 

We use the same AI-driven credit decisioning techniques to evaluate borrowers who opt-in for funds within our P2P platform. This way, AI helps investors make safer and more beneficial decisions. In this scenario, the investor only deals with one metric – borrower evaluation. And for the lender everything from filling out the form for the first time to collection and payment reports is automatic.

Next steps

Real and practical AI applications aren’t matters of science fiction anymore. This software already brings real value to the business owners. And in the lending space, TurnKey Lender’s intelligent software leads the race by example. 

Biggest benefits AI brings into lending space are:

• Faster and more accurate decision-making
• Increased sales through repeated business
• Reduced operational costs
• Identification of potential defaulters
• Increased speed of work processes
• Boosted operational efficiency
• Reduction of operational costs
• Simplified regulatory compliance process
• Streamlined and personal customer experience
• Easier analysis of large volumes of data 

TurnKey Lender easily integrates with other solutions. If a business needs to implement AI automation of some processes, our team can take care of that. 

But TurnKey Lender isn’t just about AI. On a higher level, we offer an all-in-one intelligent platform that automates the entire lending process. The solution includes functionality that covers loan origination, underwriting, collateral management, borrower evaluation, risk management, debt collection, loan servicing, reporting, supervision, and regulatory compliance. The meaningful use of deep neural networks and machine learning combined with big data is what makes TurnKey Lender stand out.  

To see it in action, get a free TurnKey Lender trial or schedule a demo and see exactly why we’re the best in the business. 

Some may be tempted to add “loan management” — also called “loan servicing” and “loan collections” — to this shortlist, but insiders know the loan-management piece is pretty straightforward. Sure, handling schedules, rollovers, fees, grace periods, and other intricacies pose challenges if you’re stuck with outmoded technology, but they’re easily met using a robust software-as-a-service financing platform. 

Origination and underwriting, on the other hand, “can be difficult steps because they encompass all the key analysis and business decisions made with respect to loan applications,” according to Dmitry Voronenko, co-founder and CEO of TurnKey Lender, a top lending-platform-software provider. “Get these initial steps wrong, or take too long to reach conclusions, and your business will suffer — a fact that keeps untold numbers of businesses out of embedded lending in the first place,” he adds. “That’s both unfortunate and avoidable.”

But first, wanted to check if you (or your staff) would like this condensed white paper on the things you have to consider when choosing a loan origination software vendor.

Trouble is, some businesses think they can simply buy the management piece and handle gathering and analyzing crucial data using spreadsheets and legacy-tech workarounds. 

That’s a mistake, and the market seems to know it. Reflecting a decided move toward integrated loan management, the global digital-lending platform market is expected to approach $20 billion by 2026 for a compound annual growth rate of 19.6% through the seven years prior.

• Learn about:
• TurnKey Lender Origination Software
• TurnKey Lender Underwriting Solution
• TurnKey Lender Credit Decision Engine
• Artificial Intelligence in TurnKey Lender

Like trying to build a rocketship with baling wire and duct tape

Loan origination is a multi-step process. To start, loan applicants submit financial information such as bank balances, bill-payment history, credit card information, and sometimes even tax returns. Lenders use these origination inputs to determine eligibility and — if it’s deemed a “go” — assign the most appropriate interest rate to offset risks the lender takes for making the loan, a process known as underwriting. 

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But it isn’t just a matter of achieving business viability by means of efficient origination and effective underwriting. It often happens that — just as different businesses serve specific client types (in terms of, say, age, affluence, occupation, and recreational interests — a one-size-fits-all approach doesn’t do the trick. Lenders need customizable application forms to take proper stock of would-be borrowers, and manual approaches are simply too slow and too error-prone to work for most organizations.

That’s where a specialist software provider like TurnKey Lender comes in. “We have loan origination and underwriting modules that are time-tested in more than 50 markets worldwide,” says Voronenko. “They can and do work as standalone solutions, but they work even better as parts of our end-to-end automated platform, best exemplified by our Unified Lending Management Solution.” TurnKey Lender’s modules are “extremely flexible, and they allow lenders to adjust application, scoring and decisioning functionalities in minutes from an intuitive platform.”

When a business of any size or type — retail or wholesale, B2C or B2B — offers its customers credit from a digital platform, the loan-management piece is relatively simple. The organization sends out due-date notifications and — with prior permission — charges the borrower’s bank account directly. It’s that easy. 

But for loan servicing and collections to be as straightforward, the origination and underwriting pieces have to be done right. Errors created at those stages and not caught beforehand can cause trouble down the line. It’s where you can really see lenders start getting bogged down with errors and delays that impair customer satisfaction. Ironically enough, however, these troubles are avoidable.

As mentioned, some organizations — from banks to non-profits and everything in between — plug into some loan-management-only software and think they’re off to the races.

The problem? Trying to cope with origination and underwriting with tools that weren’t expressly built for the purpose means they’ll soon be up to the eyeballs in unsifted data, challenging decisions, and missed opportunities.

Why interoperability is so important to digital lenders

Meanwhile, they’re committed to a loan management system paired with homemade origination and underwriting modules that may not integrate well with systems software, if at all. So they’re stuck fretting about incompatible updates, clashing data formats, errant calculations, system errors, and all the resultant delays.

Businesses looking for solutions to these problems have three choices. 

1. Stop (or don’t start) providing credit 
2. Build-in elaborate workarounds that require constant monitoring and frequent action to ensure ongoing compatibility, especially in light of software updates
3. Migrate to an end-to-end software platform like TurnKey Lender’s

The best course should be obvious. Access to an end-to-end, in-house, turnkey lending platform with a highly intuitive interface is the best way to secure an environment where:

• Information flows without friction
• Actions are internally visible, unambiguous, and permanently recorded
• If problems intrude, diagnosis is straightforward

In addition to these operational benefits, TurnKey Lender’s loan-origination module’s decision engine is fueled by artificial intelligence and machine learning. 

Unlocking the treasures hidden away in vast arrays of data 

Artificial intelligence is simulated human intelligence whereby machines and software programs can — to an extent — learn, reason, and perceive, though quotation marks around those terms might be appropriate. 

Machine learning describes functionality that draws inferences from its environment without being explicitly programmed to reach pre-set conclusions.

How artificial intelligence, machine learning, and related concepts help lenders make loans is best understood by comparing traditional lending practices with more up-to-date approaches.

In an old-school setup,  the creditworthiness of prospective borrowers was determined by scorecards. This approach has several advantages, including accuracy and ease of oversight. On the downside, scorecard methodologies simply can’t handle big-data inputs. That was fine when lenders were content to sort through a limited number of data sources for information on loan applicants — things like loan applications, the lender’s internal databases, and credit-bureau scores. But now there’s a flood of additional data sources on prospective borrowers, including social networks, mobile devices, payment systems, and web activity. 

Of course, these inputs are highly relevant in gauging the creditworthiness of would-be borrowers — information that, without AI, “would stay locked away in datasets too vast and unwieldy to get at without help from machine learning,” says TurnKey Lender’s Voronenko. “The lending industry has a big-data problem — and machine learning is the solution that opens the doors to new customers and better long-term outcomes.”

In this light, Voronenko adds, “a lender that isn’t focused on end-to-end integration with robust functionality isn’t just giving up on efficiency. They’re saying no to AI, machine learning, and subsequent innovations — a stance that makes little sense from a strategic viewpoint.”

In 2022, this leading lending solution is expanding into the UK and Ireland and introducing a host of UK-specific pre-configured integrations and features, allowing businesses in the UK to benefit from the same high levels of automation, flexibility, AI-based credit scoring and enterprise-grade reporting features as the rest of TurnKey Lender’s global community.  

Through an in-depth R&D process and collaboration on the new features with select clients, TurnKey Lender team ensured the platform caters to the needs of UK lenders out of the box.  

 But first, wanted to check if you (or your staff) would like this brochure with the details of TurnKey Lender edition for UK lenders.

The solution automates all elements of the consumer lending process in United Kingdom. It’s compliant with AML and KYC, processes UK’s credit scoring data, and applies proprietary AI to make sure you approve more of the right loans faster. Just some of the important updates include: 

• Loan application workflow and form fields are adjustable and tailored to the consumer lending standards of the UK market  
• Decision engine analyses UK credit bureau and bank statement data and utilises it in instant AI-driven credit scoring.  
• Plug-and-play integrations with local data providers 

Dmytro Voronenko Ph.D., CEO and co-founder of TurnKey Lender comments – “We’re very excited that our platform enters the UK’s digital lending space. Apart from our award-winning end-to-end automation, we bring a set of meaningful UK integrations and tailor-fit configuration options.  We look forward to working with more creditors in the UK to help them cut costs, reduce risks, grow their portfolios, and provide borrowers with finance on better terms.” 

The end-to-end lending automation platform now offers the following UK integrations, making the platform a seamless fit for any business in the UK or Ireland looking to streamline their lending processes: 

• Bank verification service (Plaid) 

TurnKey Lender’s native integration with Plaid allows customers to connect their financial accounts to the platform, making it easier for UK businesses to automate customer payments, quickly retrieve customers’ financial data (for loan scoring purposes), and to display the correct financial details during the loan origination and loan underwriting processes.  

• Document signing (SignNow) 

TurnKey Lender has recently partnered with third-party signature service company SignNow, enabling businesses and their customers to sign loan agreements quickly and easily with electronic signatures.
 

• Native integration with any SMTP server  

TurnKey Lender’s seamless integration with all of the UK’s leading SMTP servers helps businesses send both manual and automated email updates to customers from the UK and beyond.   

• SMS notification (BulkSMS/Message Bird)  

This integration enables businesses to send regular SMS notifications to customers; nurturing ongoing customer relationships and providing them with important information and instant updates about their loans. 

• Credit bureau (Equifax) 

Equifax, the UK’s leading credit bureau, provides credit reports for customers across the UK. The credit bureau now natively integrates with TurnKey Lender to enable the most accurate loan scoring and decisioning possible.  

UK businesses are transforming their lending processes with TurnKey Lender

TurnKey Lender platform lets lenders in the UK automate all parts of their loans’ lifecycle from a single intuitive cloud-based solution. With TurnKey Lender, businesses based in the UK and Ireland now have access to an advanced, AI-powered lending automation and decision management solution that allows lenders – as well as enterprises that offer financing – to utilise powerful workflows to simplify their entire lending management process.

Businesses in the UK and Ireland can benefit from TurnKey Lender’s powerful end-to-end loan management automation, which allows TurnKey Lender clients to make smarter loan decisions, decrease churn and get faster loans to the right people – on the right terms. 

With its proprietary AI, enterprise-grade reporting features and the fastest time-to-market, it’s no wonder TurnKey Lender’s powerful lending solution is trusted by hundreds of businesses around the globe.

If you’re a UK business looking to take your loan automation to the next level, look no further than TurnKey Lender’s UK edition for a world-class loan management platform.  

Learn more about the UK edition of the platform or book an intro call today.

In the increasingly digital economy, businesses can’t turn down viable monetization methods. There are two ways to start offering consumer financing. You can go to a lender and outsource crediting to them, or you run crediting as a part of your business model where you act as a lender to your client. 

Before we proceed, wanted to check if you (or your staff) would like this white paper with all you need to know to become a consumer lender.

What is Consumer Financing?

Right now, also known as BNPL (buy now pay later), embedded lending, and in-house financing. Essentially, consumer financing is a sales tool that allows your clients to pay for your goods or services in installments rather than in one go. The easier to use and the fairer your consumer financing program is, the more potential sales you can convert into repeat paying customers. And if you treat them well while they pay out what they owe you, chances are they are going to think of you next time they need something. And this doesn’t just apply to electronics stores. Medical clinics, retailers, auto dealers, service providers – pretty much anyone can offer some kind of a credit line to their consumers. Not only because it builds trust, but because with the right technology, you can grow your profits while building it. 

What consumer financing means to a business owner is that you collect loan applications, process them to understand the risks, come up with the optimal conditions, offer a payment plan to buy your goods or services, and then automatically collect the money, with interest on the financing you provided. And while it may sound hard to implement, every step of the lending process can now be automated.

“We know how to make lending cloud-based and accessible to businesses and borrowers anywhere. We’ve been doing it for years. TurnKey Lender is pioneering the development of intelligent lending technology that enables fully contactless crediting for any type of business. Our solution can be launched within a day and from there, our intuitive SaaS solution powered by AI takes care of financing your customers or providing other credit products. This and the expert integration and configuration services are just some of the things TurnKey Lender has to offer.” – comments Dmitry Voronenko, CEO and Co-Founder of TurnKey Lender.

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How Consumer Financing Works

Usually, consumer financing is a credit that gets paid out in a matter of months in equal installments. You charge the down payment and collect the payments with interest every month. The reason why for decades most businesses outsourced financing to banks, credit unions, or alternative lenders was that evaluating credit risks accurately used to require analytical capabilities of an underwriting department. 

Nonetheless running your own financing program becomes more and more popular with automation taking care of risk evaluation, credit decisioning, origination, servicing, collection, and reporting. That said, there are two fundamental approaches to consumer financing – in-house financing or involving a middleman in the form of a third-party that will finance the clients for you. 

The same way launching an e-commerce store became available to anyone, bank-grade lending automation isn’t only accessible to large-scale traditional financial institutions anymore, with advanced SaaS providers, like TurnKey Lender, offering intelligent end-to-end automation of lending to businesses in all verticals. Ready-made solutions which are as easy to deploy and operate and don’t put a strain on the operational cost thanks to advanced AI doing all the heavy lifting behind the scenes. 

Consumer financing: in-house vs third-party options

Outsourcing financing to traditional and alternative lenders has been the only viable way to offer financing at scale and not dedicate an entire department to managing loans. Using a third-party means involving a middleman that, at best, keeps just a part of the interest. In that scenario the client doesn’t have a relationship with you past the sale, it’s with the bank. 

And for some businesses that’s the right way, because administering the loans yourself means that you remain in control of the entire operation and take on all of the risks yourself. After all, that’s the reason why up until recently only a large financial institution would be able to run all the checks and accurately evaluate the credit risks of each application. 

It’s evident though, that in the digital age, crediting is becoming embedded into the operations of any business rather than a service from a third-party. As lending technology becomes developed enough to provide the market with intelligent easy-to-use SaaS solutions, business owners can finance their clients directly, originating the loans, servicing, and collecting payments on autopilot. While involving a third-party lender in this process may result in delays, loss of data, and reduced repeat sales. 

Implementing a digital consumer financing program allows you to:

• Reach wider audiences thanks to the financing program making your product more affordable.
• Add a new selling point for your products for marketing purposes
• Move your business operations online, collecting all the data in one place and allowing for advanced analytics.
• Eliminate the middlemen in the form of a bank. 
• Build lasting relationships with returning customers who you can target with special offers, upsell, and cross-sell opportunities. 
• Increase profits by making it easier to buy more expensive things.
• Regular payments you’ll receive from borrowers will build a stable income source that combats income seasonality

Technology Choice to Do In-House Consumer Financing Right 

Launching a customer financing program shouldn’t be a massive technological undertaking anymore. And the process for the client should be painless, so they want to come back. 

Enrolling for a payment plan, getting approved, and receiving your purchase should all be done from an intuitive interface of a modern SaaS, not in Excel tables or on paper. The reliability, usability, and intelligence of your operation all depend on the system you end up using to automate lending. Look for a solution with:

• Built-in decision engine – the platform needs to have a flexible decisioning flow that can be adjusted to your business logic and to filter out potential defaulters early on.
• Scalable infrastructure to process as many loan applications as needed without skipping a bit. 
• Affordable pricing – TurnKey Lender offers lending as a service platform where you pay a subscription fee based on the number of loans you successfully process. 
• Simple learning curve – both borrowers and employees are used to Amazon-level customer experience, modern lending platforms are built in accordance with the latest design best practices.
• Integrated solution – to streamline the business operation, a single platform should be the central hub of all intel and analysis. Get a platform that combines multiple functions and allows for simple API integrations with different data sources, tools, services.
• Available from the cloud – look for a platform that you can deploy on the cloud to be accessible to your staff and clients from anywhere and on any device.
• End-to-end lending automation – find a solution that allows for automation of the specific parts of the lending process as well as its entirety.
• Proven track record – make sure that the provider has proven previous experience with similar projects and recognition from the industry. 
• Regulator-ready software – make sure to talk to a local regulations expert to see how selling your products in installments is regulated where you operate. For example, in the US, there’s no need for FCA approval if you operate a business-to-business service and you offer financing services only to other incorporated businesses (not sole traders or small partnerships). Once you know the rules, make sure the system can suit that. 

In-house financing powered by TurnKey Lender

TurnKey Lender platform makes it possible for any business to benefit from implementing a consumer financing program. From simple payment installments and merchant or vendor financing, to invoice financing or factoring – TurnKey Lender automates it all from a unified lending management solution tailored to the specific needs of your industry and market.

We offer end-to-end lending processes automation that:

• Comes with an AI-driven Decision Engine built-in. It includes proprietary scoring models and preconfigured integrations with major credit bureaus and bank statement providers. All this data processed by the machine learning algorithm allows for unmatched credit decisioning accuracy.
• Highly configurable credit products. Granular credit product settings allow you to create as many credit products as you need to serve every client’s specific needs as well as to create promo campaigns and run special offers. No matter the custom settings, the processing, underwriting, servicing, collection, and reporting will still be smoothly automated. 
• Different versions of the solution by business domains (retail, auto, medical) allow you to find the optimal fit for your operation. And if you need custom functionality or advanced adjustments, our team is there to tune the platform to your exact specifications. 
• End-to-end lending processes automation. TurnKey Lender platform helps you automate every element of your financing program from a single solution. 
• Other than the 75+ pre-configured integrations, TurnKey Lender comes with an advanced API client that allows you to integrate with any third-party products or services in a matter of clicks. 
• Intuitive workplaces for the employees and a Borrower portal. Every user of your TurnKey Lender platform will have a dedicated workplace with only the features they need available to them. And the borrowers will be able to track, repay, and apply for new loans in the Borrower portal.
• The AI-driven platform takes hours to deploy and has a little-to-no learning curve.

Consumer Financing Process with TurnKey Lender

With TurnKey Lender, you can put customer financing on cruise control and focus on using it as a sales tool for business development. The entire consumer financing process can be as simple as that:

• Communicate the details of your consumer financing program to your clients
• Convert leads through the configurable built-in application form
• Make a credit decision based on the intel the platform gathered.
• Collect a down payment and approve the loan
• Receive payments automatically with the periodicity you agreed upon with the client. 

All the data is then stored in the platform and can be exported for reporting or analyzed internally with built-in tools. 

TurnKey Lender Buy Now Pay Later platform allows any business to make consumer financing a new monetization source. Book an intro call today.

A couple of years back, the technology made a leap and alternative lending as we know it came to be with a myriad of digital lenders rising and offering a new way to work with credit. Now the new age begins with lending management systems being easy enough to maintain and affordable enough to offer an additional revenue stream for regular business. At the same time, personal savings rates have dropped which means that people now more than ever need more accessible and affordable point-of-sale credit products.

By the way, please, visit our Pay Later Hub, where we have collected everything you need to start your own BNPL operation in-house to offer payment plans to your consumer or business clients.

TurnKey Pay Later – BNPL lending automation 

In-house consumer financing, no matter you provide goods or services, helps a venture offer more payment flexibility and helps them score more business even when clients don’t have all the money to pay upfront. Not to mention, the clients can also be extremely appreciative of this practice as it gives them a way to get what they need on conditions that work for them, without having to deal with the middleman’s rates and fees.

Here’s how it works in a nutshell. If you’re selling any kind of goods or services that people want to buy in several payments, you may want to scale this to a full-fledged in-house financing operation. Having your own lending platform can sound expensive and demanding. But it’s really not the case anymore.

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In this day and age, you can easily deploy an all-in-one lending automation platform like that of TurnKey Lender within days. Our company offers a holistic AI-driven solution that addresses all the needs you’ll have as a provider of credit products: from risk assessment, loan origination, and servicing to collection, integrations with credit bureaus, reporting, and even regulatory compliance. Here’s a short video with an overview of the benefits and features TurnKey Pay Later

provides.

Learn more about TurnKey Lender Retail and schedule an intro call today!

Before, you would need to deny clients who can’t pay you in a single payment, redirect them to a bank or trust them to return the money. Now you can do all of that automatically on your own turf. This way not only do you get to instantly convert the hot lead into a paying client who is tied to you by weekly/monthly payments but also get to keep the additional margin on your product in form of a percentage. If you choose to charge them an additional percentage of course. As a provider of in-house financing, you deploy our platform within days and your clients instantly get access to safe credit.

You build meaningful relationships, you grow your business’ reach, and at the same time make more money by keeping it in your business rather than giving it away to a bank.

Expensive products are sold easier with in-house consumer finance

As a business owner, you don’t want to redirect your clients to a third-party lender at the point of checkout. You need to control the entire buyer journey, to build your own relations with the client and making profits yourself rather than outsourcing them.  And no matter if you work in a developing or developed market, your buyers have a psychological bias which makes buying decisions easier when they are covered with credit funds.

Due to the need or vanity, people do still want to buy smartphones, TVs, computers, cars, renovate their flats, etc. So in today’s (and tomorrow’s) markets, the winning business will offer in-house financing to make the buying decision easier in the cases when one doesn’t have enough cash in their pocket or in their bank account.

See, with the ongoing all-consuming digitalization, the collection of loans will only get easier. Cause you’re always on the radar of whoever needs to find you. The business risks diminish and the returns grow.

Build lasting customer relations with flexible credit products, and intelligent automation

A business offering in-house financing adds one more selling point to their brand. Given a choice, the client will pick the store that lets them get instant safe credit inside the store rather than force them to go to a bank to get a loan. No one wants to wait for weeks to get approved for a loan in a traditional bank to buy their kid their first smartphone. Not to mention, things like this is what makes your business look more credible. It’s like the guarantees you may or may not offer. It says that you’ll be there. The deal works both ways. You are there for them, they are there for you. They pay you back and then they come back for more thanks to your simple experiences.

Customer builds their credit history with you while enjoying the benefits of your in-house financing program

This one may include slightly more effort, but if you report your in-house financing operation’s details to a credit bureau (which either way may be required by your local regulator), your clients also get to improve their credit history while getting the product they want, no matter how expensive or insignificant.

TurnKey Lender Retail platform provides your business with a bank-grade Decision Engine that is configured to your audience and local KYC rules. Proprietary machine learning networks and deep neural networks process loan applications instantly, providing you with a 360 view of the customer’s creditworthiness.

Businesses that benefit from in-house financing most

In-house financing for the automotive industry

Automotive industry at the moment is the biggest market practically applying in-house financing. As of 2018, 84% of all vehicles are being leased or financed and a lot of that is done in-house.

At TurnKey Lender we offer auto financing software to help this kind of businesses strive. The all-in-one platform we provide delivers speed and accuracy in processing of a new application, easy management of customer payments, refining their risk profiles, or mining customer data to identify marketing opportunities. This advanced car dealer financing software can be customized according to your decision rules and your risk tolerance parameters.

Learn about TurnKey Lender for Auto Dealers.

Medical and dental services and products financing

Medical businesses, which are often not covered by insurance, can benefit greatly from implementing an in-house financing option. For example, if you run a plastic surgeries clinic or offer dental services, your benefits are two-fold. On one hand, you tie the clients to yourself as they do tend to come back to you for maintenance or new procedures and you get to convert more clients who don’t necessarily have enough money to afford the service they need. And if you’re wondering, TurnKey Lender’s dental and medical financing software can easily make your business ready for offering in-house loans.

TurnKey Lender provides a dedicated Medical solution tailored to the needs of clinics and medical professionals who’d like to implement an in-house consumer finance platform:

TurnKey Lender Medical 

In-house consumer finance for any retail products

No matter what you sell, and no matter the country you operate in – if you’re selling products which are more expensive than the average receipt from the groceries, you should consider having a point-of-sale crediting option. This makes buying decision a lot easier and this is especially lucrative considering the type of clients retail deals with. There’s no problem with going to a store across the street if yours doesn’t offer to distribute payment for the new iPhone into several monthly payments. So whenever you’re ready to take your business to the next level, you can use our best-in-class retail lending software to get ahead of the competitors.

TurnKey Lender Retail is an industry-leading solution for end-to-end automation of lending including vendor relations and custom functionality for a streamlined crediting process for both the borrower and the lender.

TurnKey Lender Retail

Renovations and furniture installment plans

Just like people will always eat, they will also always need to buy furniture and renovate their houses and flats from time to time. And I don’t have to tell you that it costs a pretty penny to do any kind of substantial work in your living arrangement. The business that offers credit on-sight will be in a beneficial position to those who don’t, by default.

Industry-leading and innovative companies in the US and around the globe are already using TurnKey Lender automation to offer flexible and intuitive financing to their clients in-house. Bankers and retailers, auto dealers and medical professionals, renovators, FinTech startups, and many other businesses rely on TurnKey Lender technology for easy-to-use yet robust and intelligent automation. You can find businesses in your industry that already benefit from TurnKey Lender here.

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Models you can use for your in-house financing program

The new socially distant economic and social reality has boosted the reemergence of a variety of consumer market hits which are made fully digital by TurnKey Lender, like leasing, rent-to-own, lease-to-own, e-Commerce, retail finance, merchant/vendor finance, etc. Learn more about our company here. And for all of those, you as a lender can offer credit products with different terms.

• No charge – in this case, in-house financing becomes the ultimate selling advantage of your business and a marketing tool that helps you generate more customers rather than makes you money directly. But it does come at a cost since you’d need to cover the expenses on maintaining a platform out of your other profits.
• Flat rate – you can also charge a flat monthly rate for issuing and servicing each loan up until the point of repayment. Alternatively, you can charge a one-time setup fee enough to cover your expenses and use in-house financing simply as a tool to drive more business to you.
• Discount rate – another common choice is to offer a rate which is lower than that of a bank. This way you get the competitive advantage of serving the client quickly in-house and at the same time make money to cover your expenses (and possibly more, depending on the size of your operation). So if a bank usually charges 5% for a loan on your kind of products, you can charge 3% or even 4.5% and still come out on top.

Forbes Council: Options For Retailers Considering Point-of-Sale Financing To Win and Keep Customers

How to offer in-house financing in your business?

The industry for retailers is not very regulated, we have to support sales tax, customer agreement (called loan agreement in our system, but sometimes they are not loans), notifications, etc. regular stuff, nothing special

We offer intelligent end-to-end automation that allows any business to sell their products or services in installments with flexible credit product settings and AI-driven credit decisioning which ensures unmatched loan portfolio quality. TurnKey Lender is a technology company. We’re the backbone technology for customers that want to provide PoS loans to make monthly payments, etc.

Since millennials don’t really like credit cards and traditional lending that much, this generation more than their parents is likely to turn to point-of-sale financing. And you, as a business owner have a couple of options to provide them with this freedom of choice.

• If your business is really small and you can manage the borrowers manually, you can provide credit the old way and just hope that the people will bring or send you the installments every month or every week. But that’s not only unscalable but also highly unreliable.
• You can also partner with a Point-of-Sale credit provider and integrate with their platform. This way you often get access to their funding to back you and minimize if not eliminate your risks of non-return. But you also miss out on a lot of opportunities.
• Or you can cover in-house financing yourself and get a ready-made all-in-one lending automation platform to run your own point-of-sale operation. This way you get more responsibility and stay in control. But it also includes a bit more work in terms of servicing and collecting if your borrowers aren’t particularly punctual with their payments. Either way, this is the biggest fish to fry right now and if you get the right lending automation platform, there won’t be that much hassle. You can reach out for a free trial of TurnKey Lender to see just how easy it will be, no strings attached.

Learn more about starting an in-house customer financing the right way. 

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Final thoughts

After all, why do we even need lending? To get the goods and services we need on the best conditions possible. As technology moves forward, it becomes more and more clear that in-house financing is going to play a huge role in the future of lending. Mostly because it’s a win-win situation where both the lender and the borrower get exactly what they need and there are no middlemen involved whatsoever. The technology is already there and you can rely on it to get ahead of the competition with very little effort. So right now is the best time to launch the in-house financing program for your business.

Request a live demo of TurnKey Lender and start your digital lending journey today.