Lenme offers an easier way to connect lenders and borrowers
In just three clicks, Lenme connects potential borrowers with financial institutions, lenders and individual investors that want to compete for small-dollar loans. But to deliver on its promise of making lending easier, Lenme needed a reliable and secure way to connect its mobile app to potential borrowers’ bank accounts.
Challenge
Lenme needed a secure and reliable way to connect to consumers’ banking and financial information, so it could evaluate underwriting decisions and transfer funds to borrowers. But consumers were having trouble connecting their accounts in the Lenme platform. Errors were common and downtime was a major concern.
Solution
Lenme chose AllData® Aggregation to safely and securely connect to potential borrowers’ banking and financial information. With AllData Aggregation, Lenme has access to more than 18,000 unique data sources, including banking, credit, investment and insurance accounts. AllData Aggregation is API-based, so the experience is seamless for borrowers within the Lenme app.
Proof Points
• AllData Aggregation made it quick, easy and safe for potential borrowers to connect their banking and financial accounts to the Lenme app
• After implementation, customer complaints about the connection experience, latency, and downtime dropped 40 percent
• Higher-quality data improved underwriting decisions and sped up fund transfers
• Using an API created a seamless user experience and helped Lenme fulfill its vision as a fully automated lender
Business Challenge
Mark Maurice, founder and CEO of Lenme, developed the idea for the company from his own experience. After requesting a loan, he was bombarded by loan offers and every potential lender needed more information. He had to answer the same questions repeatedly and then manually provide bank statements so lenders could verify his eligibility.
Maurice saw how cumbersome the process was for borrowers and lenders. But he could also imagine an easier way.
“I wanted a way to give my banking information to lending companies before we started a lending conversation.”
- Mark Maurice, founder and CEO of Lenme
Client Profile
Lenme is a fully automated lending solution that connects potential borrowers with financial institutions, lenders and individual investors. The app-based platform was launched in 2018 to simplify the lending experience for consumers in need of small-dollar loans. Already, Lenme has 250,000 users and has originated more than $2.5 million in loans.
An Easier Way to Borrow
In 2018, Maurice launched Lenme, a mobile app designed to connect borrowers and lenders. Borrowers link their banking and financial accounts to the app so they don’t have to provide additional financial information to request or receive a loan.
A loan request can be completed within seconds. Borrowers can compare offers in the app and accept the most desirable terms. Funds are automatically transferred into their account within a day or two.
A Smarter Way to Lend
Banking activity is a better indicator of repayment than credit bureau rankings or one-off statements, Maurice said.
Lenme gives investors access to more than 2,000 data points about potential borrowers, including aggregated banking data, income and payment history. Lenme also runs potential borrowers’ banking data through machine learning-based lending algorithms to evaluate their risk and create customized loan offers. Using aggregated data, lenders can make smart underwriting decisions.
The entire concept is built on data. And while the idea was sound, the exchange of data initially caused some hiccups.
Customer satisfaction is a key priority for us. Once we started hearing a lot of complaints about the experience, we started looking for a new solution.
-Mark Maurice, Founder and CEO of Lenme
Missed Connections
At first, it was difficult for users to connect their banking information to the Lenme app. The process was lengthier than Maurice had hoped and often failed. Frequent downtime was also frustrating to customers.
Maurice considered a handful of data-aggregation solutions and created a detailed comparison chart before selecting AllData Aggregation from Fiserv. Maurice was impressed by the experience with Fiserv and its relationships in the industry.
“Fiserv is able to give us the insight and expertise we need to securely move our company forward,” he said.
Finding the Right Partner
The AllData Aggregation implementation for Lenme took about two months.
“It was impressive,” Maurice said. “Implementation support from the Fiserv team was really key.”
Fiserv provided feedback on data quality and structure, which made migration easier for Lenme’s developers, Maurice said. And because AllData Aggregation was implemented as an API, Lenme retained control over processes and the user experience.
“We can infuse the functionality from Fiserv within our app, which has a huge impact on the user experience,” he said. After Lenme started using AllData Aggregation, user complaints about bank connections plummeted 40 percent. Data quality also improved.
Advice to Others
Maurice encourages other companies looking for data-aggregation services to find a good partner, not just a vendor.
“Look for someone who understands your goals and will support your entire journey, hand in hand,” Maurice said. “Fiserv treats us like a partner, not as a customer. That’s key.”
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