Staying ahead of the technology curve means strengthening your competitive advantage. That is why we give you data-driven innovation insights into the FinTech industry. This time, you get to discover 5 hand-picked personal credit solutions.
Global Startup Heat Map highlights 5 Top Personal Credit Solutions out of 561
The insights of this data-driven analysis are derived from the Big Data & Artificial Intelligence-powered StartUs Insights Discovery Platform, covering 2.093.000+ startups & scaleups globally. The platform gives you an exhaustive overview of emerging technologies & relevant startups within a specific field in just a few clicks.
The Global Startup Heat Map below reveals the distribution of the 561 exemplary startups & scaleups we analyzed for this research. Further, it highlights 5 personal credit solutions developed by startups that we hand-picked based on criteria such as founding year, location, funding raised, and more. You get to explore the solutions of these 5 startups & scaleups in this report. For insights on the other 556 personal credit solutions, get in touch.
BFEX enables Decentralized Credit Scoring
Traditional credit scoring has limited reach as it applies only to the population with a credit history. However, a major portion of the population cannot afford formal lending platforms because of stringent policy requirements for obtaining loans. Thus, startups are developing credit scoring systems for the nano and microfinance sectors. These solutions consider a variety of factors including social media presence and logging habits in determining the credit score.
BFEX is a Chinese startup that develops a peer-to-peer (P2P) lending platform. BFEX provides decentralized scoring using blockchain, artificial intelligence (AI), and behavioral sciences. The startup’s platform enables users to boost their credit scores via social networks. The startup’s technology creates smart contracts to make cross-border transactions transparent and secure. The loan information is automatically recorded in the hyper ledger. In addition, the startup offers the BPAY Wallet to allow users to transact with BFEX business partners to set flexible interest rates and improve credit scores.
Rebel provides AI-based Unsecured Credit Assessments
Getting access to unsecured credit is difficult and lengthy due to the complexity of assessing the creditworthiness of the borrower. With traditional loan providers charging hefty interest rates, consumers often feel exploited. Therefore, startups are developing digital lending solutions using AI to better assess borrowers’ creditworthiness and credit availability.
Brazilian startup Rebel offers an online lending platform based on machine learning (ML). It provides unsecured credit based on assessments carried out via big data analysis of the clients’ credit profiles. In particular, the AI-powered platform assesses the financial behavior of borrowers to make underwriting decisions. This enables users to access fairly-priced personal loans. In addition, the startup devises the REBEL Score to explain an individual’s credit profile and provide suggestions to improve financial health.
ZestMoney offers Digital Credit
With online market platforms gaining traction, a major shift is taking place in purchasing patterns. With online merchants providing equated monthly installment (EMI) options for purchases, repayment habits are used to determine the financial behavior of online shoppers. Startups are developing tools to harness information such as the frequency of purchases and the amount of credit availed to extend personal loans.
Indian fintech startup ZestMoney offers a lending platform for borrowers who don’t have access to credit cards or other formal financing options. The startup’s platform uses mobile technology, digital banking, and AI to improve accessibility for digital financial services. For example, ZestMoney’s solution provides users with smaller amounts of credit as EMI options. Users then use the credit to make purchases with their network of merchant partners, including Amazon and MakeMyTrip.
Cortex works on Automated Consumer Lending Platforms
The procedural requirements for disbursing a loan involves heavy documentation and multiple visits to the institution. As consumers become accustomed to online platforms, there arises a need to improve process efficiency. Particularly, emerging solutions automate the entire loan process. Startups are developing solutions for lenders to digitize their lending process and increase efficiency.
Cortex is a US-based startup providing consumer loan automation software to financial enterprises for consumer lending. The startup develops a customizable lending solution that includes website integration, a decision engine, and a loan management system to facilitate online lending. The software automates the loan origination process and enables loan disbursements within 24 hours. Cortex also automates the billing and collection processes and simplifies reporting with comprehensive and precise data. The solution further visualizes the information for consumers using dashboards to facilitate decision-making.
Amber gives Personalized Loan Quotations
The existing lending infrastructure restricts the speed of accessing loans due to unavailability and time. Borrowers are also unaware of the exact interest rates of their loans since the information available through the traditional channels is confusing. Therefore, startups are automating the lending process and removing time barriers by digitizing the entire lending and borrowing process.
Canadian startup Amber works on personalized loan quotations. The startup uses big data analytics to lower the cost of borrowing by assessing a range of parameters such as credit scores, loan affordability, and overdue accounts. This enables lenders to obtain the rate of interest suitable for the applicant. Moreover, the simplicity of Amber’s platform enables users to receive personalized quotes efficiently. The platform also adopts industry security standards and is Better Business Bureau (BBB) accredited, which ensures data security. By maintaining stable interest rates throughout the borrowing and repayment period, Amber provides users with an affordable and transparent personal loan platform.
Discover more FinTech Startups
Personal credit solutions, such as the 5 examples highlighted in this report, focus on lending process automation as well as increasing access and transparency for loan financing. While all of these technologies play a major role in advancing digital banking, they only represent the tip of the iceberg. To explore more financial technologies, simply get in touch to let us look into your areas of interest. For a more general overview, you can download our free FinTech Innovation Report to save your time and improve strategic decision-making.