Part I: How to automate 90%+ of an existing or new consumer lending process

This is a part of our series devoted to TurnKey Consumer, the ultimate consumer lending automation platform. Here are the parts of this series

• Part I: How to automate 90%+ of an existing or new consumer lending process
• Part II: 6 biggest consumer lending automation mistakes and how to fix them 
• Part III: 7 consumer finance verticals with the highest growth potential until 2030
• White paper: All you need to know to become a consumer lender

And so, let’s begin the Part I. What kind of a lending process does a borrower expect these days? Other than the fact that they would hate coming to a brick-and-mortar branch to fill out paperwork. 

• The borrower lands on your loan application page from an ad or from search. On their phone or desktop, from anywhere in the world. 
• Loan application gathers all data required for instant origination and underwriting.  
• Borrower chooses one of automatic loan offers they can get from you based on their credit score, bank statements, and other relevant data that feeds directly into your lending platform. 
• Borrower e-signs the loan agreement and receives funds on the bank account they chose. 
• Payments are charged within the logic set for the credit product borrower chose.  

In this process, there’s not much human involvement, is there?  But to achieve such levity, you need lending software flexible enough to fit your specific lending model, local credit regulation, and cultural expectations. 

Types of consumer lenders that can and should go digital

Consumer finance is such a broad category that this umbrella term includes anyone from a pawnshop owner, a BNPL provider or a peer-to-peer lending startup to a credit card department of a bank, a payday lender or any other personal credit provider. Over the years, we’ve condensed 10 most common types of credit products that digital lenders extend to their borrowers.  

1. multipurpose personal finance 
2. micro/payday loans 
3. lines of credit 
4. embedded lending (BNPL, medical, retail, POS, etc) 
5. peer-to-peer lending 
6. real estate finance (mortgage, home equity, renovation, etc) 
7. non-profit credit 
8. credit cards and overdraft  
9. leasing (dealerships, equipment, etc) 
10. telecom airtime finance  

All that is of course possible and easy with TurnKey Consumer – the ultimate consumer finance automation platform.

What stops business from offering consumer credit 

The factors that stop business owners from becoming lenders most commonly are as follows: 

• lending process management overhead 
• credit risk management 
• ROI of the credit program 

The parts of the lending process you need to automate 

Fundamentally, for a technology provider like TurnKey Lender there are two kinds of lenders we automate processes for:   

1. Established lenders going through a digital transformation
2. New companies looking for long-term reliable lending tech partner 

However, if you’re aiming to do digital lending in an optimized and reliable fashion you’ll need a one-stop solution in both cases. The parts of the lending process every consumer lender will have to automate. 

• Loan application – every borrower at some point lands on your online application page where they complete atailor-fit application process, providing necessary documents, credit check, approval, and disbursement of funds. 

• Origination and underwriting – when automated properly, both origination and underwriting happen instantly involving a human only in case of a problematic application. However, the process under the hood uses AI to analyze loan application, credit bureau, bank statements, and other data to help you make an accurate low-risk loan decision that the borrower can be excited about.   

 

• Loan servicing includes managing the relations with the borrower while they are paying you back. Processing payments, changing schedules, applying fees, assisting the client, administering tax, etc.  

• Debt collection – collections can be an important source of anxiety. But a platform like TurnKey Lender alleviates those headaches by instantly identifying debtors, automatically communicating with debtors, handling payments, reminders, calculating collectability scoring as part of risk assessment, etc.

• Collateral management – many of the consumer lenders TurnKey Consumer automates lending for, offer secured loans. For them, the collateral module can be enabled in the platform to unlock all necessary features to manage collateralized assets.  

• Reporting module – all the data that enters your business needs to be processed and reflected in the reporting module tailored to your needs. 

• Borrower, vendor (for BNPL), investor (peer-to-peer lending) portals – depending on your business process, you may need portals with specific functionality for borrowers, vendors, investors integrated natively into your business.  

Using separate stand-alone solutions to automate these processes is the key mistake that hinders the ability of lenders to scale as well as causes maintenance/compatibility issues and stress.   But we’ll talk more about common mistakes in the next chapter.  

Choosing consumer lending automation platform 

Of course, we’re biased. But on an ongoing basis, TurnKey Lender analysts track the capabilities of other solutions on the market and we can proudly say that no other platform on the market provides this level of one-stop intuitive automation of the entire lending process.   So let us use TurnKey Consumer as an example of what a modern consumer lending automation can do.   We offer a proven one-stop platform that grows your loan portfolio while cutting operational costs and risks. We know what the most efficient and optimized way is to automate consumer lending – we have done it for creditors in 58 countries who currently service over 50 million borrowers through TurnKey Lender platform.   Enjoy all the best practices, unexpected finds, preconfigured common flows, credit calculations, integrations, and more in TurnKey Lender’s cloud platform for consumer finance.   

• Intelligent data-driven scoring cuts credit risk  
• Platform tailored to you ensures instant performance boost  
• Stand out in user experience, speed, and credit terms  
• No human error or unnecessary paperwork  
• Automation aimed at radical operational cost reduction  
• All of lending running from a unified infrastructure  

Our goal is to let you achieve these objectives as a consumer lender 

• Focus on business development instead of loan, staff, and borrower management  

It’s a consumer lending infrastructure that runs on autopilot and doesn’t require micromanagement of the platform or the staff. It’s a reliable, proven machine that simply works while you focus on strategy and business development.  

• Reach wider borrower groups while lowering credit risk  

The platform lowers credit risks thanks to intelligent credit decisioning. This and the elimination of operational bottlenecks lets you reach a wider audience and offer borrowers better terms than competitors.    

• Cut operational costs and billed time with meaningful personalized automation  

Most recurrent and paper-based lending processes are completely automated. The loans are approved and processed instantly. Payments then are charged based on a pre-defined schedule.     What used to take a few weeks of underwriting is now done automatically based on criteria you have complete control over.   

• Easily offer better terms, hassle-free loan management, and streamlined communications   

With TurnKey Lender you can offer borrowers a fully digital experience, your lending platform is more user-friendly than the competitor’s, you can offer better financing terms, hassle-free loan management, and streamlined communications. The only ingredient left is you and your team.   

• By your side long-term  

TurnKey Lender is a platform that evolves and improves alongside your business and the global lending market. With regular platform updates, you receive new features, calculations, scoring upgrades, etc.   

• Experiment and adjust to market changes and opportunities swiftly  

TurnKey Lender’s granular settings allow creditors to be dynamic in reacting to market changes or opportunities. It takes minutes to create and launch a new, fully automated credit product which meets your exact requirements in terms of fees, schedule, terms, regions, and other criteria.  

What TurnKey Consumer lets you do 

Every creditor we meet wants reliable and predictable platform that is as easy to use on a day-to-day basis to achieve the company’s goals without thinking about the tool you use.   The cornerstone of any lending business ditial or not is portfolio growth. Lenders understand that to get that they need to cut costs, automate all time-wasting repeatative work, approve loans automatically on fair terms with low risk and little to no overhead.   After that they want installments to be collected, borrowers to be happy with the service they received and come back when they need financing again.    Shortly, they need a platform that just works. And by working they mean that it saves them operational costs, cuts credit risks, removes human error, is regularly updated and maintained by an expert team.   TurnKey Lender does just that with TurnKey Consumer.   One-stop platform that makes a consumer lending operation easier to launch and manage than a comparable e-commerce store. Tested and proven in 50+ countries, perfected based on hundreds of lending automation projects in all credit verticals you can think of.   

Features that resonate 

In addition to all steps of the consumer lending process being automated in a single platform, the rest of the infrastructure you get with TurnKey Consumer is tailor-fit to the needs of a business like yours. here are some of the features that resonate most for our current clients.  

• AI-powered decision engine  
• Credit product calculations’ engine  
• Configurable loan application flow  
• Flexible documents management  
• Permission-based feature access  
• Cross-channel notifications  
• Pre-configured integrations  
• Branch management  
• Auto loan statement generation  
• Co-application  
• Audit trail   
• Fully automated communications  
• Theme and appearance editor   
• Batch importing & exporting of data   
• Powerful API engine  
• Creating new promos and credit products  
• Loan application process  
• Streamlined migration from other platforms (including custom solutions) 

Consumer lending process your borrower wants  

All of the above converges to provide you, your borrowers, and staff a  

1. Borrower applies online  
2. After auto processing, the borrower e-signs the loan agreement   
3. Funds are disbursed  
4. Payments are automatically charged until repayment  
5. Borrower continues working with you in their personal portal  

On the other end of the line, you and your team can rely on the platform to handle lending’s heavy lifting while you focus on the borrower, not the busy work   

1. Loan terms are calculated based on borrower’s data  
2. Loan application is approved automatically or by your staff  
3. Automatic loan servicing and payments can be easily managed manually too  
4. Automated borrower communication is fully configurable  
5. In-depth reporting provides real-time insight into business performance  

As you can see consumer lending automation in our time isn’t something to be intimidated by. But there are mistakes that you can and need to avoid to build a successful business in today’s market.  Start your TurnKey Consumer journey today. Book an intro call today.