Disrupt the lending industry

BACKGROUND

Our client wanted to digitize and speed up the application process for loans to small and medium businesses

Fundation is a lending startup and credit solutions provider that wanted to disrupt the lending landscape for small and medium-sized businesses. While the capital was sourced from its partner network of banks and non-banking finance companies, Fundation wanted the application process to be completed and managed in an entirely digital way.

The organization needed to find a software development firm that could bring its vision of a streamlined, data-driven, digital application process to life. It was looking for a web-based form that delivered real-time, interactive feedback as applicants chose responses. This would allow Fundation to achieve its goal of delivering the equivalent of a bank loan in as little as two business days.

Fundation chose Asahi as its software solutions partner as we could deliver a scalable, secure technological ecosystem and post-launch support in line with their budget.

CHALLENGE

To build an app that included a complex loan application algorithm process with third-party integrations for ID verification and credit score check

First, we conducted a discovery phase so we could get a deeper understanding of the challenges the client was facing. It also gave us a better insight into Fundation’s proprietary algorithm, which determines who qualifies for a loan and the terms of lending.

From this, we understood that the key challenges were:

• The complexity of Fundation’s proprietary algorithm, which analyzed five approval parameters and six conditions for the loan
• Ensuring the application we built could integrate with third-party systems, which help to verify applicants’ identities and provide information on their credit score. Each of these systems came with its own APIs, documentation, authentication guidelines and security protocols. Some integrations required Secure Sockets Layer (SSL) implementation, while in others, data needed to be encrypted for security.

We also used the discovery phase to understand the requirements for the app as well as learning which third-party systems the application would need to integrate into.

 

SOLUTION

Loan process automation of the loan process with an app integrated with a payment gateway, loan servicing platform, and CRM system

By the end of the discovery phase, we had created a 150-page document containing a confidential project blueprint. It comprised the project’s vision and scope, requirements needed for the app, technical architecture and design, features and functionality definition, project plan and roadmap, collaborative sketching, a refined cost and schedule estimate, and high-fidelity mockups.

As our client operates in the banking and finance sector, the threshold for error was extremely low. But our rigorous process and our skilled team ensured we avoided mistakes.

We connected with the IRS to obtain clients’ tax statements and an identity verification system to validate business owners’ identities. We also connected with a credit scoring and decision making system to determine applicants’ credit profiles, for both the business and its owner, and online banking systems to see each applicants’ banking and repayment records. All of this information fed into the algorithm to speed up the application process for Fundation’s clients.

We also integrated a payment gateway to process loan application fees and surcharges, and a loan servicing platform to facilitate automatic loan instalment payments via ACH bank transfers. Finally we connected a CRM system, so Fundation could store information about loan applicants who were denied funds for future marketing activities.

TESTIMONY

Quicker than a bank

IMPACT

Simple, speedy loan application and approval process helped our client expand its customer base and satisfy them

Our state-of-the-art application streamlined and accelerated the lending process for both Fundation and its clients. We gave the organization an advantage by automating the process, allowing it to offer a superior service than competitors who are still using an inefficient paper-based approach. Fundation’s clients can now easily apply for loans and receive funds quicker than a bank. We also allowed Fundation to capture applicant information efficiently and simplify its clients’ loan application, approval and servicing experience.

Since our new application was launched, Fundation’s customer satisfaction rating has remained a stellar 4.9 out of 5. It has also rapidly expanded its client base, extending more than 250 loans with a total value of more than $60m in just two years.