Prerequisites for the implementation of a lending platform
Main features of the platform
Types of lending on the platform
The control mechanism implemented on the platform allows the system to view documents (the state of affairs on them, assigned executors, reporting) of branches, additional and operational offices not only to local bosses, but also to heads of the head office, which gives certain advantages in prompt management decisions.
Credit program base
The platform automatically collects, stores, updates and analyzes huge amounts of banking data. Loan programs are a collection of several hundred different conditions and criteria. For example, each loan program has its own interest rate, which depends on the geographic region of the country. In order to ensure that the client receives the best offers, the Platform updates and analyzes many millions of records in real time.
Search for loan offers
The broker generates an online request, which contains about 50 different criteria. Together, they determine the credit conditions of the client. The platform analyzes this set of parameters in real time and compares them with a variety of lending programs of participating banks. As a result of the analysis, the client is provided with lending offers on the most favorable terms for him.
Wide range of tools
The main category of active users of the platform is credit brokers. They are the ones who carry out all the operations for preparing a loan request and selecting the best offers for clients. The platform provides them with a wide range of tools for doing business online. This is a personal account, processing client applications, tools for searching and selecting loan offers, collecting reports and statistics.
Data processing intensity
All banks participating in the platform regularly update the parameters of their loan programs. For example, interest rates are updated daily. There are 250 member banks in the system. An average member bank supports about 300 lending programs, and a large one up to 700. Each program has up to 100 possible interest rates, which depend on many criteria. As a result, the intensity of data processing when updating information reaches 10 million records per hour.
The platform accumulates and stores the history of changes in absolutely all parameters of bank lending programs. It also provides the participating bank with the ability to amend the criteria for the future. For example, schedule a 4.7% interest rate change for a specific loan program, which will automatically take effect after 1 month. This functionality allows brokers to select loans for any date in the past or in the future.
Broker profit calculation
The most sophisticated tool of the Platform is the value added function, which takes into account the benefits of the mortgage broker. This amount can be calculated by the Platform in a variety of different ways, depending on a huge number of criteria for lending programs. The calculation is performed automatically and the values are taken into account by the Platform in the final proposal for the client.
P2P lending (person-to-person lending) is the direct issuance of loans from a depositor to a borrower without the participation of traditional financial institutions. This service is provided by specialized platforms where the user can act as both a lender and a borrower. The idea of these platforms is simple - borrowers get cheaper loans (it is assumed that the costs of lending platforms are lower than the costs of banks), and investors get access to direct investments in loan portfolios at more profitable risk-based interest rates compared to deposits / bonds of a bank. sector.
P2P market leaders offer a wide range of types and conditions of lending and, accordingly, investments in these loans:
By type of loans: unsecured consumer loans; small business loans; car loans
Bridge loans secured by real estate;
The main practical difficulties when investing in the P2P market are as follows:
The key success factors of the platforms are technological advantages. On the supply side, success is driven by a user-friendly interface, 24/7 availability, and a simple and fast loan application process. On the demand side, interest in online platforms is determined by the profile of borrowers: as a rule, they have no collateral, there are credit restrictions on the part of banks, weak creditworthiness or an empty credit history.
Initially, online platforms were focused on the sub-prime segment, that is, for those for whom bank credit was not available or expensive. But by starting with unsecured consumer loans, the platforms have gone ahead, targeting student loans, car loans, mortgages, and small and medium-sized business loans. Online loans can largely replace banks' consumer loans among existing clients.
The unregulated activity of online platforms and their competitive advantages make online loans thrive. Platforms do not need to support costly branch networks, servers, and data centers that must meet operational risk management requirements. Online platforms rely on simple web solutions, third-party call centers, automated credit risk assessments, and cloud-based software. They have no reserve requirements, no deposit insurance premiums, and no other costs associated with the regulatory burden.