Digitally Transforming Non-Bank Lending

With the recent rise of Embedded Finance it begs the question, who is likely to benefit the most??

One of the main contenders for this argument comes in the area of Non-Bank Lending. This industry has a deep understanding of the trials and tribulations of traditional online banking.

Non-bank lenders receive information from lender/borrower actions on their website that informs them when/where to move money. The act of receiving this information is separate from the actual transaction of funds. This impacts the scalability of a business due to an increased amount of manual transactions being done through a slow and archaic banking portal. It is this separation of information and transaction that leads to increased manual processing and overall inefficiencies within these workflows. The workflows we have created below demonstrate that with NoFrixion embedded, these separate actions could become one and the same.

There are many different types of non-bank lenders, to give you a sense of what NoFrixion can do I’ve described a scenario for a P2P lending company below. Through the use of NoFrixion programmable current accounts we can automate the flow and distribution of funds. This functionality can be applied in different situations in a customised manner meaning that whatever type of non-bank lender you are, we have a solution.

Sample Scenario with NoFrixion Embedded:

1: When Lenders/ Borrowers sign up for the P2P platform they are provided with a programmable NoFrixion "Client Account." Lenders will deposit funds into their client account, businesses will make repayments into their respective client account. These accounts are all on the NoFrixion network. Once funds are on the network the movement of money becomes instant and seamless.

2: When a lender's bid is accepted the money will transfer from their lender client account to the borrower's client account. Once the loan is fully gathered, the P2P platform will approve a transfer of the full loan amount from the borrower's client account to the borrower's bank account.

3: Once the loan is filled and transferred to the borrower the borrower client account is auto-set with rules that automatically split repayments/fees and distribute them back to each lender client account as well as subtracting the P2P platforms fees.

In this scenario, every action on the P2P platform has a corresponding transaction on NoFrixion removing the need for manual transfers and reconciliation. Repayments are automatically split off to each respective lender and the platform's fees are automatically taken. Overall hours and hours of manual processes are cut out and replaced with a streamlined, highly efficient process.

When it comes to implementation NoFrixion enables you to create your own personalised financial workflows embedded within your software. We open a direct channel to communicate with our development team to support you along the way. If any of the above is of interest to you please get in touch via [email protected]