Modern Small and Medium Enterprises (SMEs) represent a significant part of the global economy, accounting for nearly 90% of all modern businesses. Modern SMEs are large contributors to the creation of workplaces and economic growth, especially in developing countries. Although they’ve become a vital part of the financial ecosystem, these businesses are facing extreme difficulties […]
Modern Small and Medium Enterprises (SMEs) represent a significant part of the global economy, accounting for nearly 90% of all modern businesses. Modern SMEs are large contributors to the creation of workplaces and economic growth, especially in developing countries.
Although they’ve become a vital part of the financial ecosystem, these businesses are facing extreme difficulties in accessing finances. SMEs are often associated with higher risks, sizeable transaction costs, and a lack of collateral—about 50% of small business loans get rejected.
Many business owners cite this financial exclusion as a key obstacle to the growth of their venture. The common hurdles in obtaining a loan include burdensome processes, low level of transparency, and the high costs associated with searching for a loan. For instance, the research by the Federal Reserve indicates that small business borrowers spend nearly 24 hours on paperwork alone during the loan application process at a bank.
The problem is global: businesses from East Asia and Pacific regions represent the largest share (46%) of the total number of underbanked SMEs worldwide, followed by Latin America and the Caribbean (23%) and Europe and Central Asia (15%). In 2018, the finance gap between the needs of global SMEs and available funds reached $5.2 trillion, according to SME Finance Forum.
Following the financial crisis of 2008, with the idea of de-risking their balance sheets, large banks started to avoid lending to SMEs by introducing stricter requirements to receive funds. For instance, in the UK, where SMEs represent a tremendous 99.9% share of the 5.7 million businesses, the value of issued bank loans fell to £55.6 million in Q4 of 2018, a 78% drop from its maximum of £255 million in 2009.
The other reasons include the variety of regulations banks have to cope with, insufficient credit history, and the high transaction costs of underwriting and onboarding customers. All in all, providing loans to small businesses has become less of a priority for banks. “If you look at the great recession, what you’ve seen is a bounce-back of commercial lending, but lending to small businesses really hasn’t come back,” sums up Darrell Esch, Vice President of global credit at PayPal. The majority of banks are not interested in lending relatively small amounts of money on a frequent basis. Some banks have introduced a sort of a loan threshold (commonly around $100,000 to $250,000), and won’t engage in loans below this level. The others will not address requests from SMBs with less than $2 million in revenue.
But technology changed the scenery for many small and medium-sized enterprises. In comparison to traditional financial institutions, digital lending companies provide favorable terms on credits. With low-interest margins, faster approval, and without initial fees, they are scaling up quickly and already capitalizing on new scoring methods.
On the Path to Digitalization
Top decision-makers in the banking sphere are aware of the success of alternative lending companies. However, still slowed down by legacy systems, banks are only dipping their toes in digital lending. The outdated technology at banks isn’t the sole issue. At the recent Lending Fintech Europe in London, lga Zoutendijk, a career banker with several decades of experience, said that “legacy culture is a bigger problem at large banks than legacy tech and a much more difficult challenge to overcome.”
For traditional lenders, fintech is an opportunity to innovate and modernize. However, one can’t fight legacy culture alone: on their path to embrace digitalization, bank institutions need a fintech partner to bring technology, speed, and flexibility to the table.
Fintechs are looking for such partnerships as well. With all the improvements in customer experience, they predictably lack the expertise in areas such as risk management, loan monitoring, and servicing that banks have in spades. This mutual knowledge gap creates partnership opportunities. Denise Leonhard from Paypal is sure that “nobody is going to be able to do it alone. To get to the next evolution of payments, it’s going to be really partnership-driven.”
Addressing the Challenge
But what is the biggest challenge in initiating the loan process for banks? Moody’s Analytics, a financial intelligence provider, conducted a poll among bank institutions. The results revealed that 56% of bankers consider manual collection and data processing to be the greatest obstacle in the process of underwriting.
These outdated methods lack consistency, accuracy, and auditability, not to mention, they are time-consuming. This results in additional work for risk officers at a bank, and assessing an SME’s creditworthiness becomes a challenging and unprofitable task. Traditional players just can’t compete with agile, fast-moving alternative lenders and their “time-to-money” credit decisions which take less than a day.
Lending to SMEs is not profitable for banks unless they change their operational approach. The solution lies in the automation of manual processes. Banks have to adopt such solutions for enhanced data collection, scoring, and further rule-based decisions, and solve the problem of the data’s inconsistency and delay. Igor Pejic, the renowned author of Blockchain Babel, sums it up: “It is simply not possible to offer the customers the speed they need in today’s economy with manual processes.”
But what’s more important for banks, those changes mean investing in the future: alternative lending options make customer experience of SMEs convenient, transparent, and adapted to the way those businesses operate.
The Future of SME lending
Partnerships between banks and fintechs are one of the most-discussed topics in the industry as they have the immense potential to impact long-term growth, customer experience and client retention for both parties. Industry professionals agree that bank-fintech collaboration is evolving as a common industry practice that will shape the future of the lending domain.
By partnering with alternative lenders, traditional players fight the challenges associated with the process of credit risk assessment, increase the quality of the loan portfolio, and stay competitive in the SME lending sector. More importantly, they have the opportunity to offer small businesses a shortcut to finance with fast access to cash, less paperwork, and fewer rejected applications.
In return, alternative lenders benefit from partnerships by getting experience in handling a complex regulatory environment, reaching new markets, and scaling quickly. In regards to this, old-fashioned “collaboration” is the new industry trend, while “disruption” is regarded somewhat as a thing of the past. Effectively, change is almost impossible without industry-wide cooperation and consensus.
The question: is how will banks and fintechs manage their respective strengths to proceed with deeper integration in a newly-formed system? It’s important to note that these integrations shouldn’t be regarded as acquisitions by any means. In other words, the technological vision of fintechs shouldn’t be at odds with the slow processes within banking institutions: one needs to convince multiple stakeholders and departments that the partnership makes sense. Here’s Chris Skinner on the partnerships: “Banks are slow to move, particularly at the beginning. Realistically, you should consider allowing at least 12-months from the moment you engage to the moment you have a partnership agreement signed.”
However, the financial industry holds little pessimism about collaborations: 82% of top executives at banking institutions have plans to partner with a fintech within the next 5 years. That’s only a matter of time before both parties streamline their processes to completely change the dynamics of SME lending.
All in all, given the competitive advantages that come with strategic partnerships, banks and fintechs have better chances to achieve their scale ambitions and reinvent their business models.
According to the CGAP report, the global opportunity for SME credit is estimated to be around $8 trillion. At the same time, more than 50% of overall applications are being rejected regularly. If banks want to take their share of the lucrative market, they need to modernize, and that’s totally good news for small businesses, technological partners, and the whole fintech ecosystem.
Dmitri Koteshov is the digital content marketer at HES (HiEnd Systems), a fintech company behind comprehensive lending and credit scoring solutions. As a seasoned professional, Dmitri maintains a longstanding interest in providing insights on fintech software development and analyzing current technology trends.
News Comments Today’s main news: Prosper loses $26M with spike in lending. Prosper’s Q3 growth with $1.5B in securitizations for 2017. LexinFintech files for $500M U.S. IPO. Finastra named best in class. The first securities lending platform launched. Compass raises $100M for expansion. Today’s main analysis: The U.S. yield curve flattening. Today’s thought-provoking articles: Have we reached the end of […]
Prosper loses $26M with lending spike. AT: “Add this to the OnDeck struggles and there seems to be a plague on P2P lending profits this year. It’s puzzling, but one reason could be the industry leaders have reached a plateau. This doesn’t spell the end, or even the beginning of the end, for online lending. Rather, we are starting to see a few hurdles to leap over as the leaders learn to optimize profits, expenses, and business processes for the mature stage.”
LendingTree to have logo on pro basketball jerseys. AT: “This is interesting. Since LendingTree is a marketplace for loans, it’s hard to see how this won’t be good for the industry. Now, if they can get the entire NBA to put their logo on all team jerseys, then move to baseball and football, they could get wide exposure for their brand.”
Prosper Marketplace recorded a big jump in loan originations during the third quarter, but the San Francisco-based online lender still racked up $26.9 million in losses.
The privately held firm has lost $210 million since the start of 2016, in spite of various cost-cutting measures. In July, Prosper announced plans to discontinue a personal finance app that it acquired in 2015.
Prosper, a peer-to-peer lending platform for consumer loans, today reported growth in both transaction revenue and loan originations for the third quarter of 2017. Continued demand for Prosper’s personal loan product resulted in $822 million in loan originations through its platform, up 6% quarter-over-quarter and 164% year-over-year. The company also grew transaction fee revenue 5% quarter-over-quarter and 164% year-over-year.
The following table summarizes the financial highlights from the quarter:
Key Operating and Financial Metrics (Unaudited)
Three Months Ended September 30,
Transaction Fees, Net
Servicing Fees, Net
Net Cash Provided by (Used in) Operating Activities
Summary of Key Financial Highlights:
Prosper facilitated $822 million in loan originations through its platform, up 6% quarter-over-quarter and 164% year-over-year, driven by strong demand for its personal loan product.
Transaction fee revenue rose to $37.2 million, up 5% quarter-over-quarter and 164% year-over-year.
The company reported a Net Loss of $26.9 million in the third quarter of 2017, which included $28.1 million in non-cash charges related to warrants to purchase preferred stock that were issued to a consortium of investors and a third party in connection with a settlement agreement.
Prosper generated $9.9 million of Net Cash from Operating Activities and Adjusted EBITDA(1) of $7.3 million in the third quarter of 2017.
To put it simply, the Treasury yield curve measures the spread between short- and long-term debt issued by the U.S. government. It’s the extra compensation that investors demand to lock away their money for an extended period.
To get a sense of just how dramatic this trend has been, here’s a look at a handful of curve measures now versus the start of 2017. In trading Monday, they were all close to the flattest levels in a decade.
From two years to 10 years: 72 basis points, down from 125
From two years to 30 years: 119 basis points, down from 187
From five years to 10 years: 33 basis points, down from 52
From five years to 30 years: 80 basis points, down from 114
The two-year Treasury yield is at the highest level since 2008 as investors prepare for a rate hike in December, and begin to build up expectations for further increases next year.
Asset-liability managers like insurance companies and pension funds are always seeking duration, and 30-year Treasuries are among the best ways to get it. Combine that appetite with increased demand from passive mutual fund giantslike Vanguard and BlackRock, and you’ve got a recipe for a sustained bid on the long end of the Treasury curve.
If one does take history at face value though, the $14.3 trillion Treasuries market is sending a warning about the economic outlook. Yield curves are the flattest in a decade, and it’s no coincidence that about 10 years ago marked the start of an 18-month recession.
While banks’ lending margins have increased slightly from their 2015 lows, they remain below the average of the past 30 years, according to the Fed.
PeerStreet, an award-winning platform for investing in real estate backed loans, is excited to announce that it is aggressively expanding available resources and tools for private real estate lenders on its platform.
PeerStreet lenders can now access detailed Property Valuation Reports which allow lenders to analyze property data and adjust property details to generate highly accurate valuations that reflect current or future market conditions. The data that makes this possible is licensed by PeerStreet from HouseCanary, a leading provider of real estate valuation data and analytics. PeerStreet is providing this service to our lenders free of charge through our Lender Platform.
“Currently, our platform is a robust secondary marketplace for lenders. We’ve purchased over half a billion in loans from local lenders, but we see great value in developing practical tools to grow lenders’ businesses beyond providing capital to them,” said Brew Johnson, Co-Founder and CEO of PeerStreet.
The Charlotte Hornets and LendingTree today announced a multi-year partnership in which the Charlotte-based online loan marketplace’s logo will appear on the team’s jerseys, effective immediately. LendingTree also becomes a Founding Level Partner of the organization and the Official Loan Shopping Partner of the Charlotte Hornets. The Hornets will wear the LendingTree logo on their jerseys for the first time on Wednesday, November 15, when the team debuts its new Classic Edition uniform in an 8 p.m. contest against the Cleveland Cavaliers that will be televised nationally on ESPN.
Along with placement on all team uniforms, LendingTree will have fixed signage on the Spectrum Center concourse and on the venue’s mobile entry scanners, as well as digital signage on the scorer’s table, basket stanchion, center-hung scoreboard and 360 LED boards. LendingTree also receives entitlement of the new Hornets app, the team roster page on hornets.com and score updates on the team’s social media outlets. Additional advertising elements include banner ads and pre-roll video ads on hornets.com and spots on Hornets television broadcasts on FOX Sports Southeast and radio broadcasts on WFNZ.
After Farmers & Merchants State Bank in Archbold, Ohio, switched its internet domain from dot-com to dot-bank, it got a handful of calls from customers wondering where its website had gone.
The $1 billion-asset bank also noted some assumed when a sentence ended “.bank.” in its promotional materials, the last period was part of the web address, instead of perfect punctuation.
Farmers & Merchants is one of only a few hundred institutions that have made the switch to the generic top-level domain that became widely available in mid-2015. While the extension is supposed to signal a bank is, in fact, a bank, the domain is still not available to most bank customers.
While it is not encouraged to apply for loans from major financial institutions like big banks (owing to interest rates of 15% – 23%), there are other options such as Lending Club that offer interest rates at just 5.32% for preferred clients. With interest rates that low, it is viable to consider nonconventional options to get your investments up and running. Lending Club is one example of a highly reputable service comprising a community of lenders that can help investors achieve their objectives.
According to the CFPB, payday loan companies collectively raked in roughly $3.6 billion in fee revenue in 2015. The CFPB also estimated that there are 15,766 payday loan stores throughout the U.S., slightly more than the country’s 14,350 McDonalds.
This lending product is commonly targeted at low-income consumers who use payday loans as plugs gaps in expenses in order to keep them afloat. Some credit unions see this an opportunity to help the underserved/underbanked market.
The Hoboken, N.J.-based LendEDU polled 1,000 consumers who have used a payday loan in the last year with some surprising results:
The average payday loan borrower used a payday loan 3.80 times in the last year.
Eighty-two percent said they looked at the interest rate and fees before borrowing.
The average amount borrowed was $442.16.
Fifty-one percent said they did not regret using a payday loan.
Two-thirds of respondents said they explored other borrowing options (ex. installment loans, credit cards) before using a payday loan.
However, some 75% of respondents indicated they were well informed throughout the application process; and when asked “Did payday loans make your financial situation better or worse off?” more borrowers stated that payday loans made their situations better, (44.2%) than worse, (30.3%).
According to a report by Sarah Strochak of the Urban Institute, the outpouring of financial technology (fintech) in the mortgage space has brought with it all sorts of innovation, including new ways to capture data, reaching more people and expanding access to credit. The Urban institute also states that in having the ability to reach more people, fintech firms also have the potential to disrupt the inequality status quo in the economy.
For example, the Urban Institute draws on the case of Down Payment Resource, a company that has created a database that matches customers with down payment assistance programs.
The Telegraph asks a question which will evoke a sigh from many readers. Have we seen the end of the peer-to-peer lending boom? Last year’s record £3.2 billion lending total – of which two thirds went to Zopa, Funding Circle or RateSetter – has been impacted by a succession of unrelated bad news stories.
First there’s been the falling rate of returns, which run at barely 3.7% for Zopa Core 4.5% at Zopa Plus – down by a good 1.5% since the good times. Not to mention a deteriorating risk situation: nowadays, the Telegraph says, fully 20% of applicants get Zopa approval compared with barely 0.5% in the old days. That puts Zopa’s approval rate on a par with the mainstream banks.
Flux, the London fintech startup founded by former early employees at Revolut, has announced a partnership with Barclays in the U.K. that will see it trial its itemised receipt technology with 10,000 of the bank’s customers.
The young company has built a software platform that bridges the gap between the itemised receipt data captured by a merchant’s point-of-sale (POS) system and what little information typically shows up on your bank statement or mobile banking app.
Alison Whistance, described as a finance expert, joins ThinCats as Origination Manager, South-West, as the peer to peer lender gears up for its next period of growth. Recently, ThinCats announced a £200 million funding program in conjunction with its parent company ESF Capital.
LexinFintech Holdings, a Chinese online consumer lending company, has filed for a $500m initial public offering in the US and in the process revealed that funding costs have spiked this year – just as Beijing has signalled its intent to crack down on the sector in a drive to rein in financial risk.
LexinFintech said in a Securities Exchange Commission filing that it was seeking to raise as much as $500m from its listing on the Nasdaq equities exchange under the ticker symbol “LX”.
The company said total operating revenue for the nine months to the end of September rose 35.3 per cent year on year to Rmb3.99bn ($600.6m), while operating costs rose 19.9 per cent to Rmb3.1bn, shaking out to a net profit of Rmb5.8m for the period, compared to a loss of Rmb193.7m a year prior.
In the past few years, technology has revolutionized the financial sector, and as fintech continues to swell into more sectors, the real estate industry will welcome its own version, known as proptech, according to a senior executive from international real estate consultancy company Jones Lang LaSalle.
Perhaps the most prominent example of fintech on life in China is the ubiquity of mobile payment. The Better Than Cash Alliance reported earlier this year that Alipay and WeChat Pay enabled $2.9 trillion in Chinese digital payments in 2016, a 20-fold increase in the past four years.
A recent HSBC study finds that 70 percent of Chinese millennials have their own property, with 91 percent planning to buy a house in the next five years, a greater percentage than their counterparts in countries including Canada, France, the US and the UK.
The European Commission (EC), the economic bloc’s legislative body, is launching a study aimed to assess the feasibility and potential of an EU-wide blockchain infrastructure.
The study, which is set to cost €250,000, will focus on whether blockchain can assist the EC’s objective of creating the conditions for a reliable, transparent and EU law compliant “data and transactional environment.”
Aite Group’s bi-annual report, Commercial Loan Origination: Scoping the Market and Comparing the Vendors, is a comprehensive review and ranking of the 10 leading global commercial loan origination vendors. It uses a highly governed and quantitative vendor evaluation methodology known as the Aite Impact Matrix (AIM), which provides an in-depth market assessment of financial technology vendors.
Total Lending, powered by LaserPro (the installed base of which was evaluated based on the long-standing D+H commercial loan origination capabilities that comprise this new “good-better-best” tiered offering) was recognized by Aite Group as having the highest client strength score.
FusionBanking Credit Management Enterprise obtained the highest score for product features, delivering on the largest number of required commercial loan origination functionalities with the least amount of required configuration or custom code.
Finastra also received the “All Things to Everyone” award for its breadth of offerings from a single vendor.
SBL Network Ltd, the new financial technology company created to provide transaction and information services to the global capital markets industry, is to launch the industry’s first peer-to-peer securities lending platform.
Aquila Network provides the first market place allowing major institutional owners of equities such as Pension Funds, Insurance Companies and Sovereign Wealth Funds, to negotiate and lend directly to Hedge Funds.
SBL has raised approximately £1m this year via two EIS-qualifying funding rounds and now announces the launch of its Aquila Network, the first peer-to-peer securities lending platform, established in response to what the firm says is growing demand for greater transparency in the securities lending marketplace.
Overall, global Fintech investment remains solid with$8.2 billion invested across 274 deals.
Some of the larger investments during the quarter include:
Intacct – $850 million
Concardis – $806 million
CardConnect – $ 750 million
Xactly – $564 million
Merchants’ Choice Payments solutions – $470 million
Access Point Financial $350 million
Service Finance Company – $304 million
Prodigy Finance – $204 million
TIO Networks – $238.9 million
Dianrong – $220 million
Insurtech is on course for a record breaking year with VC investments standing at $1.53 billion by the end of Q3 for 179 deals. For the entire year of 2016, Insurtech saw $1.79 billion invested in 203 deals.
Regionally, Fintech deals break down as follows:
Americas – $5.35 billion for 158 deals
the US claimed $5 billion and 142 deals
Europe – $1.66 billion for 73 deals
The UK dominated
Asia – $1.2 billion fro 41 deals
China continued to dominate but deals in Hong Kong, India and Korea were in the top 10
What happens when a company gets blacklisted? Will the employees have access to credit or will they get declined despite having good credit scores and salaries?
If one lands in such a situation, the logical thing to do is to change the employer. More because it would not only have an impact on one’s credit life, but more importantly, continued employment with a blacklisted employer can lead to financial disruptions sooner or later.
If the need for funding arises while being employed with a such company, one could take the following steps:
# The first lending institution to be contacted has to be the bank with your salary account.
# Each lending institution has its own methodology of categorizing companies and the current employer may not be part of the list with all lenders. So, “there may be some lenders willing to give loans unless one is employed with prominent companies that go bankrupt (as we have seen over past few years). However, one has to be very careful and in the endeavor to procure credit one must not apply with various lenders at the same time since this can have adverse impact on the credit profile. A better option would be to connect with a credit advisor with established repute and seek assistance,” informs Ramamurthy.
# Peer to peer lending is another new age option that can be explored by such individuals.
LendEx financial-tech (fintech) start-up plans to initiate an ICO (Initial Coin Offering) using the Ethereum platform based on block chain technology. The investments will be used to launch the LendEx P2P (peer to peer) lending platform, which will focus on online lending to clients in Central and Southeast Asia.
“The LendEx online platform, built with the help of block chain technologies, will provide crypto investors with access to the platform and will allow issuing microcredits for borrowers checked in national currencies,” said fintech entrepreneur and start-up author Alexey Sidorov.
The LendEx release will be held in two stages: the actual ICO and pre-ICO, which will begin Dec. 1.
Artificial intelligence has been immensely advantageous to the financial sector. The lengthy tedious work which took hours for humans to perform was reduced to seconds by computer software. The use of papers, pens, and abacuses for conventional accounting systems have been transformed into the computerized system of accounting and auditing. Innovation in this field is so […]
Artificial intelligence has been immensely advantageous to the financial sector. The lengthy tedious work which took hours for humans to perform was reduced to seconds by computer software. The use of papers, pens, and abacuses for conventional accounting systems have been transformed into the computerized system of accounting and auditing. Innovation in this field is so powerful that it has elevated the financial auditing process to a higher plane.
Ocrolus is a financial service provider with two powerful AI products: “PerfectAudit” and “MedicaidGenius.” These products eliminate the need to audit bank and credit card statements manually.
The company was founded in 2014 and is headquartered on Wall Street in New York. After testing and polishing, Ocrolus launched officially in January 2016. Its team consists of four executive members–Sam Bobley, Victoria Meakin, Vikas Dua, and Zoheb Sait. There are an additional 15 employees working on the technology and operations side of the business.
Victoria Meakin serves as president of the company. She was also the co-founder and president of PhoneCharge, an electronic payment processing company that sold to CheckFree for around $100 million. CEO Sam Bobley is a young technology entrepreneur who graduated from the University of South Carolina-Columbia. COO Vikas Dua was previously associated with on-demand Series-C startup Handy.
What Information PerfectAudit Analyzes
PerfectAudit has been described as a fintech platform with artificial intelligence built into an audit methodology in order to perform complex processes. It collects bank and credit card statements for previous years in any format including PDF, e-statements, fax, scanned originals, and photocopy. The platform promptly extracts and filters all the data by accounts, date, description, and dollar amounts for an easy approach. If any data is not automatically ratified, then it is snipped into small images for the precise value. Taking it a step ahead for advanced accuracy, data is crowdsourced to pre-qualified workers for manual data validation simultaneously to ensure that any personal information is not shared. The beginning and end balances of account statements are reconciled with the sum of transactions through an algorithmic reconciliation process. The data is exported in the encrypted form and stored with Amazon Web Services. The combination of Optical Character Recognition (OCR) transaction detection, crowd-sourced data validation, and algorithmic reconciliation has proved to be a winner with more than 99% accuracy.
The platform does industry-specific analysis in computing series of results such as average daily balance, list of the day’s negative balance, list of interbank transactions, list of deposits from outside sources, average deposit by month, max deposit by month, minimum deposit by month, average transaction size, list of NSF transactions, list of alternative lender transactions, list of transactions ending in three zeros or more (0.00), and check to ensure previous month balance is the same as beginning balance of next month. This helps the client to conclude whether the decision to lend should be made or not.
The digitalized financial outcome is made conveniently accessible to clients through a user-friendly interface where all the desired and relevant information can be searched at a click of the mouse. It requires no installations or upgrades as everything is uploaded to the cloud, which is much more reliable and secure than downloaded files.
How Ocrolus Products Facilitate Good Lender Decisioning
PerfectAudit helps control the risk of bad debts and frauds by meticulous decision-making process and with quick automated data validation. Lenders are able to scale loan volume with reduced human intervention. The solution furnished consists of a unique standardized process for every lender. It provides a single platform with processes starting from data collection, filtration, and validation till financial determinations are made. This cycle is incessantly performed, which requires consistent accuracy every time it is done. AI excels in performing these repetitive tasks.
This platform ensures quality, effectiveness, efficiency, and insights in providing complex data reports. It replaces prolonged tiresome manual work with incredibly fast, inexpensive, and reliable solutions. It gives a very high rate of accuracy even when the records are suspicious and fuzzy. Auditors generally use a sampling method in the auditing process while PerfectAudit analyzes 100% of documents and leverages ready-to-use material, which gives an opportunity to the auditors to have in-depth insight into advanced queries to reach improved judgments.
The company’s proprietary technology also allows for regulatory compliance. It helps document the process of credit decision making, and every decision can thus be built backward onto the central algorithm.
The company’ s second product, MedicaidGenius, is targeted towards the Medicaid processors facing the same issue.
Ocrolus is Positioning Itself to Lead the Fintech Niche
The company initially focused on working with family lawyers and now works for auditors, accounting firms, and government departments. dealing with overwhelming documentation work. The company is now prioritizing the lending industry, and fintech lenders are on its radar.
Ocrolus has successfully provided services to more than 100 clients. The biggest is Strategic Funding Source, and other major clients include LendStreet Financial, Lendified, Oscher Consulting Inc., the law office of Gold and Gold, Nolan Stewart PC, Mercer Capital, and Largo Police Department. The company offers customized payment models to fulfill clients’ requirements. Most of the lender clients prefer monthly or quarterly bases, but a few prefer payments-on-time and per-page bases.
The cost-effective tool of Ocrolus has cut short the page-by-page examination into a streamlined, hyper-accurate process. The technology combines the best processes of previous solutions like OCR and combining them with its patent pending IP-in-transaction detection. It also leverages crowdsourcing and revalidation to ensure further accuracy. The automation of data validation saves time and money and eliminates the possibilities of human error.