Online loan – how to do it responsibly
October 16, 2019
Is borrowing money online an opportunity or a threat? And how is the threat for whom – the client or the financing institution? How to make sure that online borrowing is safe for all parties. We invite you to read the article about safe and responsible borrowing.
Customer Profile – what is this and what has to do with borrowing online?
On the financing market we deal with the concept of the so-called risk weighted price matrix. What does it mean? In short, the greater the risk of lending money to a given customer, the greater the price that the customer must pay for that money. What does this risk consist of? First of all, the customer profile. The more stable the client’s form of employment, the more he earns, the fewer the obligations and loan installments in relation to his monthly earnings, the better.
The lower the risk for the institution that the client will not repay the loan or credit. Risk also consists of the purpose for which the client takes a loan or collateral and institution security. If we assume that we buy a house for a loan and that house is a collateral for this loan, the institution is able to lend us money quite cheaply, if of course in the process of assessing our ability it turns out that we can afford to pay this commitment. On the other hand, if I borrow money for a consumption-related purpose, the loan company or bank is not hedging anything other than my promise to repay the loan, and I’m a customer on the verge of repayment – it’s clear that the company will lend me money more expensive.
Securing loan for one’s need
So how do you on the one hand, will secure the client that he takes financing tailored to his needs, and on the other hand the institution not to include a client with too high risk profile in his portfolio?
The answer to this question is an intelligent mapping application form. The form contains a combination of all the information necessary for the client to be verified in all institutions. As a result of completing the application, the client receives real offers from all companies – thanks to this he can compare the installment amount, the total cost of the loan and other parameters that prove the profitability of a given offer, and at the end check which offer is best for his risk profile.
Is the customer really who he claims to be?
In addition to the risk of incorrectly matching the client’s profile for funding, there is also the risk of verifying the client’s identity. Moreover, this risk is not only for the lender but also for the borrower. It is the customer who can become a victim of identity theft. How is identity verified ? The verification is several stages. On the one hand, is connected to a database of transactions carried out on the financial market in Poland. This means that the system is able to verify in real time whether the PESEL, Customer ID, bank account number and other sensitive data have not participated in the attempt to extort a loan or credit in the past. On the other hand, the system also verifies the correctness of the phone number and email. From the third, there is a direct verification by one of 3000 Agents cooperating. The implementation of these elements makes borrowing money online secure.