How can we create financial ecosystems to develop new credit offers? 💳

June 20, 2023

At a time when competition is fierce in the traditional credit sector, financial players are looking for innovative solutions to stand out and prosper. As a loss leader, credit is crucial in building customer loyalty and selling other financial products. As a result, the ambitions of financial institutions go beyond simple customer relations: they aim to generate sustainable profitability. To achieve this goal, developing attractive new credit offers is imperative. The challenge lies in creating the right financial ecosystems for this expansion. Read on!

Credit: a fast-changing sector 🚀

Credit is currently undergoing a revolution driven by both technological advances and the arrival of new players on the market. Faced with these changes, all players must constantly reinvent themselves, and traditional players are no exception.

Digital evolution and access to real-time data have brought about significant transformations in the credit industry, leading to the era of Credit 3.0. Lenders have gradually abandoned analog processes in favor of fully digital and automated borrower journeys. They now leverage many real-time financial data sources and artificial intelligence to make credit decisions fairer and faster for borrowers.

The emergence of workflow engines also makes it possible to fully personalize the underwriting process for financial institutions and customers without complex developments. Integrating third-party systems, such as electronic signatures, is now possible for a dematerialized experience. At the same time, credit is taking on new forms (micro-credit, fractional payments, etc.), requiring technical and regulatory updates.

The importance of creating financial ecosystems to develop new credit offers

To establish new credit offers and stand out in this context of renewal, lenders face many challenges, including :

  • Finding suitable data sources ;
  • Implement advanced analytical capabilities;
  • Create reliable, automated decision models.

However, certain legacy technologies still used by credit providers can slow the pace of innovation and the creation of new products. Adjusting existing offerings is also very time-consuming and requires the mobilization of significant human resources.

On the other hand, fintech, new entrants to the market, are rapidly deploying new-generation solutions that offer a vastly improved user experience (100% digital path and processing, response in record time thanks to advanced data exploitation...) to the detriment of the offerings proposed by the incumbent players. 

So, to stay in the race and position yourself as a critical player in Credit 3.0, you need to opt for cutting-edge technologies and move away from rigid Core Banking Systems to modular Core Banking Platforms.

Credit: creating financial ecosystems with a new-generation Core Banking Platform

Flexible and agile, a Core Banking Platform can be interconnected with other services to create financial ecosystems—the result: modularity, risk analysis, Best-of-Breed partner integration, scalability, and speed.

Modularity through APIsation

Modularity and using APIs in Core Banking Platforms are crucial for credit players, particularly in digital transformation. Lenders can take a modular approach to build a flexible credit infrastructure tailored to their specific risk models and lending solutions. By integrating external solutions and leveraging various data sources, they can improve the accuracy of their credit decisions and deliver a seamless, personalized customer experience.

APIs facilitate the integration of these different components, enabling credit players to compose an evolving ecosystem of partners to meet specific market needs and create differentiating customer experiences. This modular approach offers lenders increased agility, better risk management, and cost optimization.

Risk analysis

Integrating a Core Banking Platform brings considerable benefits to credit players regarding risk analysis. Thanks to advanced data analysis and artificial intelligence functionalities, the Core Banking Platform can collect and exploit a variety of data sources, both internal and external, to develop new credit risk models. Lenders can thus draw on a more accurate and comprehensive view of the risks associated with their activities.

By automating risk assessment processes, the Core Banking Platform delivers faster, more accurate credit decisions, improving operational efficiency and reducing losses. What's more, the flexibility and scalability of this type of solution enable credit players to continuously adjust and optimize their risk management strategies to remain competitive in a competitive market.

Best-of-Breed partner integration

Some Core Banking Platforms integrate Best-of-Breed partners. For each constraint or need identified, the software combines the most appropriate tool developed by an expert in the field. This approach enables us to draw on specialized solutions and deploy an agile yet specialized ecosystem.

This enables lenders to benefit from specific functionalities and services ideally suited to their needs and those of their customers. In this way, they can adapt their offering to market developments and borrower demands. This approach fosters innovation and differentiation to offer unique customer experiences and tailor-made credit solutions.

Scalability and speed

Core Banking Platforms offer lenders unrivaled scalability and speed. Thanks to their modular, microservice-based architecture, these platforms enable lenders to quickly add new functionalities and evolve their credit infrastructure according to their needs. This flexible approach facilitates the integration of new services, whether for the automation of underwriting processes, risk analysis, or the personalization of credit offers. In addition, Core Banking Platforms help to reduce product launch times, enabling credit providers to innovate rapidly and develop new offers with an advantageous time-to-market.

Skaleet, the best ally for credit professionals 🏆

To support lenders in developing 3.0 credit offers, Skaleet has created a Core Banking Platform designed to help financial institutions accelerate the deployment of new credit solutions by creating customized economic ecosystems.

This platform uses microservices architecture and open APIs to digitize the entire lending process, from application to release of funds. It integrates a set of Best-of-Breed partners, enabling lenders to rapidly set up an innovative credit infrastructure and a robust decision-making framework.

Thanks to its data-centric focus, Skaleet's Core Banking Platform facilitates the collection of internal and external data, both structured and unstructured, essential to creating new credit risk models. Adding advanced artificial intelligence and credit scoring solutions enables lenders to offer a seamless, integrated, personalized customer experience with immediate acceptance times.

Would you like to find out more? Contact us, and let's co-construct your ecosystem!

  • #innovation

  • #fintech

  • #banking

  • #corebanking

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