Why we love Instant Lending (And You Should, Too!! )

Life is full of uncertainties and throws surprises at us at every moment. There are instances when we quickly need cash—for a broken-down car, an upcoming anniversary gift, back-to-school expenses or a small investment for your business. Credit cards help at times, but getting one is a multi-step process and carries the risk of being maxed out. While you can ask a friend for help, owing money is an awkward situation that can strain or even terminate a friendship. For these reasons and more, obtaining a loan is one of the most strategic ways of obtaining some much-needed currency. Yet, some of the major difficulties a person faces in getting a loan are the waiting times and uncertainties of the loan decision process, which can prompt customers to apply for multiple loan applications to increase the approval probability.

Today’s banking and personal finance ecosystem is seeing a marked rise in the demand for personal loans, corporate loans and other forms of financial assistance. The overall lending growth in GCC is expected to rise by 3-4 percent in 2018-2019[5]. One of Nigeria’s leading loan comparison sites recorded a 29% increase in the demand for personal loans since the country’s 2016 currency devaluation. [3] Another interesting stat shows that about 12.8% of population in UAE is actively seeking a loan. Throughout this region, it is evident that the concept of instant service and turnaround time is high on today’s customer wish list. [1].  In particular, millennial prioritize the ability to bank anytime and anywhere and are driving the demand for more innovative methods to meet their banking needs.

In the vastly competitive banking sector, early adopters who harness digital technologies that improve their service offerings enjoy the greatest advantage and customer satisfaction. For example, Asia Pacific banks are working to meet the growing demands of their markets by improving the loan disbursement times for the unsecured loans. As a result of improved personal loan turnaround times, companies have achieved greater efficiency, reduced their costs and delivered a more satisfying customer experience. Yet, there remains a gap prevalent between emerging and the mature markets: the turnaround time for personal loans and credit cards range between one hour to 2.5 days in the mature market, whereas, the emerging markets can require up to four days to achieve the same result. [2]

Here at Monami Tech, we believe that the best way to keep up at this age of instant gratification is to offer customers faster loan approval and processing times. Financial solutions have to be more responsive than ever to accommodate clients’ busy schedules, especially since today’s customers are disinterested in going through traditional branch channels. With the current market research, we find that the major gap is in disbursing loans with a great deal of convenience and security.

That’s why we created Lendme, a friction-less digital service for financial institutions to provides instant loans at the point of purchase or through an easy-to-use mobile app. Lendme is a seamless digital experience that eases the loan approval process. With Lendme, getting a loan is a breeze—it instantly analyses and approves loans, empowering customers to meet their financial obligations, whatever they may be. With a customisable white label solution and built-in process for electronic submission, digital validation, merchant integration and ID automation, Lendme can be deployed across multiple channels, from e-commerce to merchants and through mobile. Customers can apply for loans at the comfort of their homes and receive approval/denial almost instantly.

Whilst the traditional risk-scoring methods of evaluating the applicant’s salary, job history and credit score are still the core of credit decisions for personal loans, a wider array of data with the potential to provide a more comprehensive risk profile is now available. This alternative approach is largely driven by social media influence using a complex algorithm that aggregates data from social media accounts by evaluating the circle of friends, browsing behavior and frequency of interaction  to establish a rating. Lendme differentiates itself by taking advantage of unprecedented amount of information brought about by the social media explosion that can better evaluate an applicant’s creditworthiness.

Lendme thus offers numerous benefits to financial institutions by

  • Creating new customer segments
  • Generating new revenue streams
  • Streamlining the loan approval process
  • Providing software as a service model (SaaS)

Lendme gives a new meaning to loans promoting better fiscal responsibility than traditional credit methods.

To learn more, visit us at www.monamitech.com

 

 
Soul Photography_Por_BRAVE_Monami Tech-16.jpg
 

Introducing the new instant loan application, Lendme. You can now have customers get quotes, register and apply virtually anywhere. 

Top Technology Trends to look for in 2018

As the weeks dwindle in the final stretch of 2017, we look towards the new year for goal setting and reaching new horizons. It’s a time for reflection, visualization, and geared ambition to enter 2018 with a winning mindset. 

One thing we have undoubtedly learned from 2017 is that technologies have proven to disrupt services. From the spike in bitcoin prices to the growing impact of artificial intelligence we have seen how eager society is for alternative financial services.

So what are the top technology trends to look out for in 2018? We have narrowed it down to three that resonate with top industry researchers, leaders and fortune tellers.

Blockchain

Although the mysteriousness that surrounds bitcoin might cause some companies to be wary of using it, the fact remains that the digital currency is officially out in the market. Even being listed on the stock exchange. 

With all the highs that bitcoin has seen in 2017, our prediction is that it will give way for other cryptocurrencies like Ethereum and Litecoin to gain power. There are speculations that the market cap of Ethereum will surpass that of Bitcoin by next year.

CB Insight predicts that digital currencies will be the dominant currencies by 2020.

Companies and governments have been focused on understanding how to piece this into their systems to not be left out. Even more investments have been made to develop solutions of their own. In the new year, we will start seeing more experimentation and real usage of cryptocurrencies.

Artificial Intelligence (AI)

We have seen how this technology has pushed the limits of science and technology by machine learning, robotics, and chatbots.

In 2018, AI and machine learning will still be the top of the news. There is an estimation that about 85% of customer interaction will be managed by AI in 2020.

As experimentations continue, we will start seeing processes being automated leading to diminished errors and costs. In 2018 it will add value in the form of analytics and big data to enhance decision making and improve the speed of services.

AI will not be just a “nice-to-have” in 2018 but a “must-have”. 

Digitized Experiences – This time from the back end

Although the focus of digital transformation has been on the front-end, our prediction is that 2018 will use technologies to power the back-end processes and systems to offer a fully seamless experience for the customer.

To deliver a transformed business model, institutions must integrate across touch-points and channels to deliver real-time customer engagement. 

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These are a few of our predictions on where financial technology is headed. Due to the rise in demand for digital services we will continue to see customers steer away from branches and transact freely on their devices. Traditional banks are taking note of these predictions and working quickly towards a phased approach to optimizing the entire customer journey from onboarding to daily services. 

With 2017 almost behind us, it's time to focus on 2018 and how we will take part of these major trends that will change the financial landscape of tomorrow. 

To keep in pace with the rising technology innovations in Financial sector and to learn more about our solutions,

Happy Holidays! ~ Adriana Bickford (adriana@monamitech.com)

5 Reasons Why the Future of Financial Services Depends on Open APIs

Open APIs (Application Programming Interface) is a term commonly used in the technology industry. Simply put, it enables the transformation of an institution from a complicated web of disconnected systems into an easy-to-use resource. When used effectively, it can hide the complexity of stacks, layers and multi-vendor technologies. Yet, financial services have been slow to embrace this trend. The herculean task of updating archaic systems and processes while meeting the evolving needs of customers prevent the industry from adopting Open APIs. This outdated way of thinking could spell doom for institutions.

The financial industry is at a tipping point between the old world and the new. Banks, Telcos, Retailers and other service providers have three to five years at most to become digitally proficient. If they fail to take action, they risk allowing a new set of competitors to wriggle between them and their customers.

The following list expands on this need for change and highlights the key reasons why Open APIs must be adopted to compete in the future. Our promise is to help your institution develop a broader perspective on APIs and utilize them to address your main challenges. So whether you’re at the stage of considering a less conventional approach or already have a project in mind to stay ahead of the curve, keep reading and check these out.

The Ever-Evolving Customer Expectations

Whether you’re a bank or telco targeting millennials or adults, it’s safe to say you’ve noticed a fundamental shift with your customers.

  • Today’s consumers (especially millennials) demand instant and seamless financial services.
  • Customers don’t want to visit branches. They want to act autonomously—wherever, whenever. At home or on vacation, they want to feel connected.
  • We live in a new era of apps and data requiring speed, flexibility and scalability. Businesses that capitalize on the convergence to IoT, Open APIs and Artificial Intelligence will create new user experiences and drive consumer behavior.

Market Maturity

Before long, financial institutions within emerging markets will begin to consolidate and experience aggressive competition to retain and attract new customers. Only the most digitally savvy will survive. Now more than ever, financial services need to deliver more value to end-users and adopt the best practices of mature financial markets. 

  • The GCC and African regions are now adopting solutions with proven track records. Contemporary products such as NFC, barcoding and cryptocurrencies are being implemented and tested as new ways to process transactions.
  • For these solutions to take place, regulatory shifts will occur. As seen in Europe, the Payment Services Directive’s second phase (PSD2) is prompting financial institutions to create and secure Open APIs to grant authorized third-party providers access to their services.
  • In short, the region is becoming a sandbox for change. Initiatives such as DIFC FinTech Hive in the UAE and AUC Incubator in Egypt are living proofs of the steps being taken to foster collaboration between technology providers and financial institutions. 

Speed to Market through Ease of Integration

Haven’t been thinking about digitalization? Now’s the time to start—if you wait, you might be obsolete. Products that were relevant six months ago may not be functional or desirable to today’s customer. Speed can be the differentiator between you and your competition.

  • Riding the digital wave isn’t a one-time deployment—it requires constant updating and optimizing. This can only be achieved through the quick experimentation of various technologies and solutions. Companies need to be nimble.
  • Your platform must be equipped to allow for change and adaptation. Robust platforms are those that are seamless, cloud-based and easily allow new products and services to be deployed to end-users within 4-6 weeks’ time (instead of months). This speed from production to delivery is a revolution in the financial industry.
  • It’s essential you send the right message to the public—your business is using cutting-edge technology with a constant eye on customers’ needs. Partner with innovators, risk-takers and like-minded individuals that share your vision and are designing solutions to problems you haven’t even thought of yet. Banking is no longer a traditional, dated exercise. Today, it’s an immersive experience that requires a multichannel approach. 

Financial Inclusion

Historically, underdeveloped markets have been excluded from the financial world. Various reasons such as poor infrastructure, limited financial resources and connectivity have attributed to this sad reality. Open API’s have not been used to their fullest potential and may be the key to tackle this issue that has long been ignored.

  • Smartphone penetration and technology adoption are rising at an extraordinary rates. Success stories such as AirTel Africa and M-Pesa prove that simple tech is sometimes the best tech.
  • One of the most central tactics to create product stickiness is to make the product more valuable over time. Open API structure will give institutions the simplicity for adding features as customers’ needs expand.
  • Open APIs allows collaboration between telcos, retailers and agents. In emerging markets, where mobile operators are the main enablers of the digital economy, operator APIs are a powerful channel for extended reach and new services. 

Last, but certainly not least… Profit

Beyond the technical benefits, Open APIs drive further profit growth for an institution.

  • Solution providers and fintech companies have accurately identified the “need of the hour” and introduced the SAAS model, with integral traits such as low upfront fees and “we grow as you grow” strategies.
  • Developers know they don’t have to reinvent the wheel. Plugging into existing platforms saves institutions precious resources and enhances the bottom line.
  • By partnering with local tech innovators and attractive start-ups, institutions can introduce some of the most innovative technologies to target new market segments and increase revenue streams.

These are just a few of the compelling reasons to adopt an Open API structure for your business. You can be sure to take a bigger slice of the market if your organization joins the trend. Do you have any others to add? Let us know in the comments.

To read more about our Open API solutions, check out our Solutions page

 

Sources:

https://www.mckinsey.com/industries/financial-services/our-insights/data-sharing-and-Open-banking?cid=soc-web

https://www.mckinsey.com/industries/financial-services/our-insights/strategic-choices-for-banks-in-the-digital-age

https://techcrunch.com/2016/05/21/the-rise-of-apis/