Behind The Apply Button Episode 7 – “Opportunity Cost”

Behind The Apply Button Episode 7 – “Opportunity Cost” February 22, 2020Leave a comment

This week has been a hectic week. We exhibited at the InsideCredit conference, formally known as CFSA in the beautiful city of San Antonio Texas.

What I’ve learned this week was two folds and further strengthened my vision to offer flexible, low-cost solutions to the greater financial industry.

As all industries transform themselves using technology, the financial industry must go through a period of a golden age before embarking on another stage of its revolution. Think of rotary phones vs. mobile technology or blockbuster vs. Netflix.

The Simple Stuff:

As it turned out, the landscape is bleak for many lenders and point of sales providers. Their existing tools are old and out of fashion. From simple things such as a custom workflow or interfaces to interact with other tools. The only solutions out there are tools built from the late 90s. And there are solutions that must be installed on a window server.

I’ve also heard that some of the existing offerings can’t process daily payments. The entire industry is beholding to old technology. We must move everyone forward.

The Complex Stuff:

There are some complicated workflows that need to be addressed. For instance, in the home improvement sector requires stage funding. Stage funding keeps everyone’s interests aligned. When a solar panel installer completes the first step, they get paid that portion of the work after city and homeowner approval.

For student lenders, when a student passed initial underwriting, administrators must log in and certify this student’s matriculation status. In some instances, upon graduation, lenders must verify the student’s income before deciding the student’s deferment status.

These are some intricacies most lending software simply does not provide. They either have a decision engine or a loan management system that lenders still have to hire a team and build everything around it. Because lenders don’t have complete control, there’s always friction that exists between complex workflow they love to have and the limited functions the base (factional) product they leased.

No Code:

The best solution is to provide a customized solution and every bit of the code is customizable from start to end. Whether its website design or discounting fees functionalities, a new age solution provider must provide a true end to end solution. Allowing their end customers to focus their customers and merchant relationships.

Until next time, have a great week.


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