AI based money lending platform
Introduction
Our client required a platform that enabled them to lend microloans to freelancers, as it’s predicted that a 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 demand for such a system is expected to be very high.. Thereby, a lending system needed to be developed to freelancers, and medium scaled borrowers with the minimal information, but making sure the loan is processed within a few minutes while making sure the information is authentic such as their existence, financial background, spending habits etc. The information is then processed and displayed to the admin to either approve or reject the loan within a short time.
Challenge
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. The client required us to develop this application so they could target freelance marketplace, so they are able 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.
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 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.