A B2B mobile lending app & platform
Loan Lending App
Ongoing, since February 2018
Visual Studio 17, Swift, Realm, MSSQL Server 16, ASP.NET Core, Entity Framework Core, Plaid, Experian, Stripe, Marqeta, Facebook Account Kit, Redis Cache, NLog, JW, Signal R, web sockets
2 iOS developers, 1 PM, 1 BA, 1 Data Scientist, 3 Back-end developers, 1 QA Engineer
Our client is a FinTech company that has been around the US financial landscape for over a decade. With their extensive experience, they recognize the challenges of the modern lending business. Firstly, the brick-and-mortar lending institutions of today don’t meet the ever-growing consumer expectations for faster decision making, offsite servicing, and instant payouts. Secondly, the costs of maintaining their physical infrastructure translate into higher interest rates that scare away prospective clients.
With that in mind, they were looking to develop a full-fledged digital lending platform and a mobile application to connect small-to-medium businesses with finance providers. The main aim of the future solution was to facilitate loan approval with minimum human involvement. The client wanted to achieve that through automation and self-learning AI. The techs should assist lenders with credit scoring, approval, and issuing. And with OTR’s broad experience in those areas, we became the perfect partner to achieve their goals.
Solution and key capabilities
The digital lending platform and the mobile app offer full automation of the business loan servicing process, including loan origination, loan application, KYC, scoring, underwriting, issuance, report generation, and non-performing loan resolution. The key features are as follows:
- Intuitive app user interface for loan applicants
- Integration with 3-Bureau Credit Report
- Integration with trusted automated KYC/AML providers and payment gateways
- Automated Lender Diversification
- AI-Based credit scoring and risk assessment
- Virtual credit card issuance
- Automated non-performing loan management
Firstly, the development started with the project discovery phase and preparing initial technical documentation by OTR’s BAs and the software architect. With the project docs outlined, the team moved on to developing the SaaS platform’s backend with extended monitoring, gathering, and reporting functionalities.
One of its dominant features was building an all-around borrower check, including credit scoring and history from trusted third-party providers. With a new account opened, the system gathers user data (loans, credit history, etc). Then, it verifies their identity and assigns them a score. Based on that score, the system either denies the user or lets them proceed with their loan application. Banks may perform additional checks via calls or messages.
Credit score calculator
OTR also developed a tailored credit score calculator. It processes the info from 3-Bureau Credit Report and other providers to calculate an individual interest rate for each applicant. The borrowers see the loan amount they qualify for and the interest rate to pay. The info collected on borrowers resides in custom AWS-based databases. These insights serve as the backbone of machine learning functionalities. The customer plans to use them shortly to automatically issue smaller loans.
AI Credit Scoring
OTR’s data scientists collaborated with the credit bureau experts in developing an AI-powered smart solution. This system processes credit history, social and financial data on both the business and its owner to facilitate the loan processing and reduce the bank’s risk. The data updates come in daily.
The mobile app
In the meantime, our mobile dev team concentrated on building an easy-to-use iOS app. With Apple Human Interface Guidelines and our best practices UX/UI in mind, we manage to create a simple yet efficient application that delivered the bank’s services to its clients’ phones.
The last stage before the extensive QA was integration with the third-party servers through an API. The services included the following:
- Plaid – bank account verification
- Experian – KYC/AML and credit checks
- Marqeta – Virtual card issuance
- DocuSign – Online doc signing
- Stripe — payment provider
The lending platform and the application helped to reduce delays and risks, improve decision-making and transparency. It handles all processes from borrower checks to payouts — available offsite with no notarized documents needed.
Some of the most notable benefits include:
- Lower rates compared to the competitors’
- Faster and smarter decision making, onboarding, origination
- Loans repaid directly from business cash flow
- Higher approval rates compared to traditional banks
- Automated processing reduces risks and removes human error
Today, our client communicates with a wide array of U.S. banks to deploy capital through the platform. Our cooperation continues: their latest request was to transform the product into a white label solution.