Australian FinTech Before paying has launched a commercial version of its lending and risk management platform.
The new offering, called Carrington Labs, gives business customers access to the technology and artificial intelligence (AI) tools that power Beforepay’s credit products, the company said Monday (March 4). Press release.
“Carrington Laboratories will offer two products,” the statement says. “The first is a decision engine that brings together the company’s AI-powered risk management modules, using alternative data to make fast and accurate credit decisions in a fully automated and low-cost manner.”
The second is an end-to-end loan origination and servicing platform, the next version of FinTech’s existing lending platform, which can originate an average of 35,000 loans each week with a team of less than 40 employees and support staff. to the client subcontracted abroad. .
“This end-to-end solution will aim to support a fully digital lending process, which is expected to allow customers to go from account creation to receiving funds in just 5 minutes, all done entirely through from a smartphone app (or an optional web interface). ”He said before paying.
“It will seek to combine origination, loan management and an optional front-end experience in an integrated and efficient manner.”
As PYMNTS wrote earlier this year, AI is ready for transform the landscape of loans to small and medium-sized enterprises (SMEs).
“Traditionally, banks and credit unions that made loans to local SMEs based their lending decisions on the five Cs: character, capacity, condition, capital and collateral of a business owner,” that report said.
“‘Character’ originally referred to the relationship between the individual banker and the individual borrower, and character-based lending was a cornerstone of commercial banking, at least in the 19th and 20th centuries.”
Today, however, lenders are more concerned with credit scores than features. But with AI-powered lending decision making As it becomes more normal, the way working capital and financing is offered to SMEs is changing.
“AI has introduced a data-driven paradigm to the credit landscape, replacing subjective assessments with objective analyzes of large amounts of information,” PYMNTS wrote.
Machine learning algorithms now consider a variety of factors, including financial history, credit scores, and business performance metrics, when making credit decisions, thereby transforming character-based lending into a dying practice.
“It is not easy for small businesses to get a loan, even if it is a small loan”, Product Director at Galileo Financial Technologies David Feuer he told PYMNTS in an interview published in October.
“Banks are becoming increasingly sophisticated in using data and artificial intelligence to make smart decisions about who to make offers to,” he said.
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