Sponsored article presented by Neofin
With current technology and existing developments around the world, the banking world is rapidly taking a leap forward towards digitizing all of its processes. The creation of online financing solutions and loan products over the past three years has created an insatiable demand from customers. Customers are looking for loan applications that are fast, quick and easy to apply.
Personal loan growth is returning after plummeting at the start of the pandemic period. According to LendingTree report, personal loan balances climbed 15.2% in 2021, reversing the downward movement of the previous year. Sales are already up 6.6% in the first quarter of 2022 compared to the end of the year.
Financial institutions other than banks, such as micro-finance institutions, credit unions, merchants, e-commerce sites and lending companies, can easily develop their credit products online, but banks were out of play. Banks have been deprived of the possibility of using the same flexible and fast products.
Although more and more neo-banks are popping up every day, meeting the demands of consumers demanding online loan services has been daunting. Therefore, Unex Bank sees an opportunity to answer all questions by launching the first instant loan banking product.
Unex Bank is a leading banking institution based in Eastern Europe. With its operation since 1993, the main objective is the development of remote channels for customer service and the dynamic development of the branch network. The bank offers a full range of financial services to companies, entrepreneurs and private clients.
We get to the heart of the matter. What kind of revolution has Unex Bank made?
First Bank Loan App – Fresh Cash
Earlier this year, Unex Bank collaborated with Neofin, a no-code lending automation SaaS, launched the first bank lending platform called Fresh Cash. The distinctive attributes of Fresh Cash have placed it above all other types of online loans.
The Fresh Cash application takes minutes to process and before you can barely count your fingertips, the loan will be paid into your bank account. This is the first loan product from a bank that has absorbed all the best in online lending:
- Speed of processing – it takes a few minutes from applying for a loan to receiving the money.
- Accessibility – the applicant receives money on the card from any bank without visiting offline offices and opening additional accounts.
- Convenient online interface — the loan process takes just a few steps and is as automated as possible for the customer and the bank.
This manageability, transparency and accessibility of the implementation of the loan product has become possible thanks to the technological solutions of the chosen software.
How much time was devoted to the realization of such a product? If Unex had used traditional loan automation solutions, the implementation would have taken more than 6 to 8 months and would have required the intervention of a team of IT specialists.
The Neofin platform was therefore chosen. Neofin is an end-to-end solution that specializes in making fully automated products for customers creating credit or loan services. It allows launching loan products in 1 hour and does not require any coding skills, as well as IT team staffing.
Neofin covers all stages of the borrower’s journey. There are loan origination, service, management, decision, underwriting and collections modules all under one hood. It also offers out-of-the-box front-end components and mixed pricing that combines subscription and pay-as-you-go models.
Answering the question above, the launch of Fresh Cash only took a month due to a no-code approach. This month included the integration with the core banking system, the customization process and the release of a fully functional product.
When we talk about new banking products and want to gauge success, we have to use numbers. So what did Unex get by launching this market-breaking product? They launched digital onboarding for all banking products, which significantly reduced operating costs and freed employees from other relevant and more complex tasks.
More to come, Unex won a record number of new leads and reduced customer acquisition costs by 50% in the first three months. This confirms once again that Unex saw the demand and made the right decision by entrusting the decision to an innovative product.
The fintech market is growing rapidly. New digital formats are emerging and replacing the successful businesses of yesterday. Banks must find a way to stay competitive and, at the same time, take advantage of the strengths, such as reliability and a large volume of assets, that startups do not yet have.