The always-on digital world makes an increasing number of buying decisions happen online, and that has an impact on applications processes. Lenders seek to fully leverage their opportunity to offer finance to buyers online and achieve the perfect balance between CPA and compliance risk. To do so, online applications processes need to be reimagined in the form of personalised lending journeys.
How personalised lending journeys help the industry
Lenders want to maximise customer experience and lending while minimising cost and risk. Regulatory compliance particularly presents an existential threat. To achieve these objectives, lenders seek to improve their applications process. However, there is no complete onboarding solution today that satisfies the needs of lenders, regulators and customers fully and simultaneously. The present state-of-the-art is to create hard-coded ‘routes to lending’ with the help of software that executes analytical decisioning. However, it does not tailor customer journeys based on individual circumstances.
In 2014, the FCA took responsibility for consumer credit in the UK, and immediately started changing the regulatory environment. I experienced the impact this had on compliance demands and commercial performance from 2014 to 2019 whilst working with a UK alternative lender. Minimising the risk of consumer’s vulnerability became a priority to lenders. I learnt the commercial and operational pain of this new regulatory world was mitigated in the onboarding journey. Moreover, tech providers were approaching the solution piecemeal. What was needed was a remedy oriented around stakeholder outcomes and personalised onboarding journeys shaped by real-time analytics. This became the inspiration that led to the creation of PrinSIX.
We developed an optimization model for lenders to appreciate the necessary balances that need to exist to right-size approaches to digital lending. This ‘thinking’ forms the policy agenda and backdrop to the orchestration technology we’ve developed to support the creation of personalised lending journeys, one customer at a time by blending AI ‘decisioning’ with ‘customer journey modelling.’
The PrinSIX platform
PrinSIX is a services-led SaaS platform for orchestrating personalised lending customer onboarding journeys, one decision stage at a time. We transform financial onboarding, specifically, the process between ‘Apply Now’ and ‘You have been approved’, so that lenders and other risk businesses can safely meet regulatory obligations while maximising profitability. We:
- Orchestrate dynamic conversations that adapt to every applicant as more is learnt, resulting in greater lending at lower risks
- Personalise customer journeys, minimising abandonment by delivering an improved customer experience
- Equip organisations to act on new insights, captured by tracking applicant behaviours real-time to hone onboarding processes over time
How our platform solves the problem
Lenders want to know potential customers aren’t vulnerable, efficiently. The current method of fixed questions cannot explore the diversity of applicants adequately, with the consequence that either many applicants are approved for lending with insufficient supporting evidence that it is responsible, or are unnecessarily declined.
Applicants want instant access to finance and a painless application journey to source it.
Regulators want lenders to have adopted a deep, thorough understanding of applicants’ circumstances
PrinSIX allows lenders to meet all of these different expectations, to meet their shared objective of access to affordable, responsible, fully personalised lending.
It asks what needs to be asked.
It questions, either directly with an applicant or through external resources.
It observes what people do and creates insights from behaviours as well as answers.
It predicts regulatory and commercial outcomes.
About the Author
UK CEO – PrinSIX Technologies
Julian is CEO and founder of PrinSIX Technology, a FinTech delivering a unique new approach for lenders to meet their regulatory and commercial onboarding objectives.
Julian’s passion for innovation within consumer lending came from his five years’ experience as the UK CEO of the US sub-prime lender Curo Group. Joining in 2014, Julian was set the challenge transformed an old style payday lender into an innovative digital lender in an FCA regulated world. This experience, gained from testing and refining new digital and analytical regulatory and commercial strategies with FCA oversight was the inspiration for PrinSIX. It inspired the creation of a proposition to help meet every lender’s challenge of optimising commercial outcomes without compromising customer outcomes.
During this time Julian was also president of the Consumer Finance Association, the trade body that represents the interests of the alternative lending industry.