AI based lending mobile application for the US market

Client
Testimonial

“I enjoyed working with the team at Rootcode labs. They made our complex idea come to life with minimal hassle.”
– Review from the Client

Client Challenge

It is predicted that by the year 2020, fair percentage of Millennials will no longer be in an office job, instead choosing the life of a freelancer. With the world taking by storm with digital transformation and the rise in millennials, a research by Forbes reveals that more than one third (36 percent) of U.S. workers are in the freelance economy, which works out to a very large number of approximately 57 million people.

Whereas, there is also a need for financial assistance required by them at some point. But there are not many organizations including the banks that come forward in order to lend loans for these types of independent workers due to financial instability of the borrower and requiring the need for a stronger credit.

Moreover, with fintechs disrupting the financial space, enticing millennials, and gaining market share, the hour has come for incumbent banks and other financial institutions to re-think and strategize their non-digitized loan application processors.

Thereby, this is where the client company came up with an idea to lend microloans to these freelancers and medium scaled borrowers with the minimal information, but making sure the loan is processed within a few minutes but still making sure the information is authentic such their existence, financial background, spending habits etc. Which the information is then processed and displayed to the admin either approve or reject the loan within a short time.

We were given a challenging project by a leading US company who lends loans, where their main need was to build an application for freelancers and small enterprises as a platform to borrow loans with minimal effort and a quick response time.

This application sounds simple but this is just the tip of the iceberg. What is hidden is the complexity and the technical challenges in determining the payback ability by calculating the credit score and checking the eligibility of the customer through financial, behavioural and social scoring of the customer within seconds.

To make this happen we verify the user’s existence, the source of income, credit score etc. We had to also figure out a way to analyze their social media presence as to understand their personality and popularity among the community which can also contribute to give a hint about the borrowers lifestyle and spending patterns.

This application was developed targeting the freelance marketplace, where the main objective was to provide loans to borrowers with the minimal time taken to process, verify and issue loans while reducing the average time taken by a financial institution to make a credit decision from 3-7 days, reduce the hassle of going through lengthy paperwork and visiting banks.

DigiLendo

The Solution

We at rootcode Labs, along with our core engineering capabilities and expertise in artificial intelligence came up with an innovative solution bridging the client company with the freelancers in the US community.

This application acts as a platform incorporating behavioral science and empowering individuals to grant micro-loans to credible freelancers with a higher credit score and less risk in the developing world through a rigorous verification process of calculating the credit score, make a credit decision easily, improve timely payments, lower default rates, and improve the overall customer relationship. The use of artificial intelligence allows for instant decisions regarding the loan application, determination of loan terms, and quick distribution of funds.

The application analyses the source of income, personal details, spending habits, previous credit history records and social media behaviour in order to decide the credit score. The factors are identified using advanced machine learning and integration of trusted third party tools in order to predict an accurate credit score. The loans are issued after reviewing the credit score.

Impact

This application also helps you manage to secure your loan through your future income. We also made sure that the borrower is able to manage his loans and payment methods through the app without going through the hassle, where the user will be able to set up automatic deposits and the system will deduct the payments in accordance with the users typical pay cycle. This application also helps the client to view all the loan related details in one place and also generate reports and do follow ups. The mobile application and the admin web application revolutionizes the way of lending loans and processing them.

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