Third Party Integrations for an efficient Lending Eco System
Date published: 20 Jun 2018

An important trait of any successful lending software is its ability to integrate with third parties and platforms to leverage the best-breed of services and solutions available in the Lending Ecosystem. The core operations of the lending portfolio can be managed by the loan management system while external data, information and services can be obtained from a range of offerings available in the marketplace of third-party providers through a seamless integration with the Loan Management System. The point is that lenders don’t need to spend their precious resources reinventing the wheel within services such as Lead acquisition, Lead Scoring and Decisioning, Payment Processing, E-Sign, Dialer for CRM, Secure Document Storage, E-mail, Messaging, Collections, Reporting etc.

All such services are offered as their core offerings by many players in the market. The approach should be to identify the most suitable providers for lender’s needs and integrating them with the Loan Management System. All that the lender needs is a Loan Management System that is built on an Open Platform to seamlessly integrate with any provider with an API. If integrated correctly, the lending portfolio will increase innovation, foster collaboration, extend customer reach and lower costs compared to existing legacy systems.

SparkLMS integrates with the best breed of third-party solutions in the Lending Eco-system to run a lending portfolio easily and profitably. Our team has curated and integrated with services and solutions that complement and extend the capabilities of SparkLMS to make is powerful to run your lending portfolio.

SparkLMS’ integration bus acts as a gateway offering lenders the advantage of being able to access market quicker and at a lower cost, while also providing transparency to users and a choice of third-party providers from across the market.

In this article, we will discuss some of the key integrations that can be readily done with SparkLMS to empower your lending operations.

Scoring and Decisioning

Scoring and Decisioning is one of the key automated processes that assist the lender in verifying or qualifying a lead. Scoring happens right after any lead hits the Loan Management System and passes the under-writing. Increased data availability, advanced analytics and new data aggregation technology is improving the ability to evaluate credit worthiness of consumers. Most lenders have been relying on scoring their leads based on traditional data. This trend may alter as non-traditional data has increasingly attracted attention in the lending industry because of the emergence of many non-traditional data sources. Credit scoring with traditional data is just a small part of the application process. Lenders are under increasing pressure to deliver more accurate, comprehensive and fast lending assessments. Consumers want fast credit decisions, and, without the help of automation, decisions are time-consuming and expensive.

Taking all this into account lenders need a Loan Management System that can integrate with multiple providers and should be capable of defining varied scoring models using multiple solutions offered by such multiple providers to arrive at a decision that is more specific to the portfolios lending needs.

The obvious integration would be with the Big three bureaus Equifax, Experian and TransUnion. Being an Open Platform, SparkLMS can integrate with all of these bureaus. In addition, the following popular providers offer solutions specific to lending industry.

1. Clarity Services

Clarity Services, Inc. now, a part of Experian is a credit reporting agency that provides information to providers and develops efficient and effective data reporting products to help businesses reduce high-risk lending. Clarity’s growing database provides information that is not available from traditional reporting agencies, and assists lenders in gaining a competitive advantage by viewing subprime consumer data.

2. DataX

DataX is an alternative data provider offering premier financial management solutions to lenders through a suite of advanced products focused on mitigating risk. It provides a comprehensive suite of real-time credit reporting, data verification, and authentication services that benefit financial service providers

3. DecisionLogic

DecisionLogic is an advanced bank verification system enabling lenders to instantly verify a potential borrower’s banking information online and in real-time. DecisionLogic now offers Identity Verification (DL match®). Utilizing industry-leading Identity Verification Technology, DecisionLogic instantly verifies a potential customer's Name, Phone Number, DOB, Address & Social Security Number. DL match® helps to add an additional layer of risk detection, helping to identify key risk indicators associated with a customer’s identity. 

4. FactorTrust

FactorTrust provides alternative credit data, analytics and risk scoring information that lenders need to make informed decisions about the consumers they want. The company, now a part of TransUnion, is relentlessly dedicated to “more” through proven analytics and clean credit information to lenders. FactorTrust + SparkLMS integration will allow lenders to score their leads in real-time to mitigate risk and to make informed decisions prior to lending a customer.

5. IDology

IDology is a provider of real-time technology solutions that verify an individual’s identity and deters fraud anywhere in the financial services value chain. 

6. MicroBilt

MicroBilt Corporation designs, develops, markets, licenses and supports a wide range of integrated risk management reporting, decision and analysis solutions for short-term lending industry.  MicroBilt has a well-earned reputation as a responsible fiduciary of highly sensitive personal data for many of the leaders in the industry 

7. BytePlant

Byteplant is a provider of highly effective, cost efficient and easy to use validation services for postal addresses, e-mails and phone numbers.

Messaging

E-mail and Text Messaging are an essential part of every lender’s arsenal for communication with the customers and prospects. These are the type of emails or test messages that get triggered by a certain action made by the user such as loan approval, denial, payment reminder, payment receipts, offers & rebates notifications, collection tracking etc. These messages could be for notifying transactions or notifying promotions.

There are many service providers that can handle the sending and delivery of such messages in a timely manner. Most of these services have automated email response tools, the ability to customize emails, administration tools for tracking and other services. SparkLMS readily integrates with the following providers in market, thereby allowing seamless communication between the lending portfolio and the consumers.

1. Amazon SES (Amazon Simple Email Service)

Amazon SES is a cloud-based email sending service designed for sending marketing, notification, and transactional emails. It is a reliable, cost-effective service for businesses of all sizes that use email to keep in contact with their customers.

2. ClickSend

ClickSend is a communication platform though which lenders can enable text messaging and e-mail communication from SparkLMS.

3. MailChimp

MailChimp is a marketing automation platform that makes it easy for lenders to design beautiful, personalized email campaigns and automations to strengthen their relationships with potential and existing customers.

4. Mailgun

Mailgun is a powerful service that enables lenders to send, receive and track email effortlessly from SparkLMS. Lenders will be able to send transactional marketing e-mails with its SMTP relay and flexible HTTP API.

5. Mandrill

Mandrill by MailChimp is a transactional email services that can be integrated with SparkLMS. It's reliable, powerful, and ideal for sending data-driven emails for a lending portfolio.

6. Plivo

Plivo is a communications platform that on integration with SparkLMS enables lenders to connect, engage and interact with their customers. With Plivo + SparkLMS integration, communication aspect of a lending portfolio is covered, be it voice calling or text messaging.

7. Solutions by Text

Solutions by Text, popularly referred to as SBT in the market, provides fully compliant SMS solutions that can give lenders the competitive edge by extending SparkLMS’ ability to communicate through SMS 

Telephony & Dialer Integration

A lending portfolio to be successful, sales and customer service operations need their Loan Management System in concert with software that specializes in interacting with the customers. Though any LMS should be integrated with multi-channel interactions and supporting services, telephony is the main stream of interaction for customer acquisition and retention. If the lender needs a dedicated team of Agents to serve the customers, a telephony in other words a dialer integration with SparkLMS is essential.

There are many telephony providers in the market offering low cost VoIP calls, reliable service, intelligent list management, dialer and click-to-call dialer features.

Here are some players offering Telephony services

1. Five9

Five9 provides robust integrations with rich and extensive options like predictive, progressive, power and preview dialing, increase agent productivity and enhance the user experience.

With Five9 embedded into SparkLMS, lenders can create a powerful combination of telephony and LMS that works better together.

2. Plivo

Plivo is a communications platform that on integration with SparkLMS enables lenders to connect, engage and interact with their customers.

With Plivo integration, lenders will be able perform two-way calling, two-way SMS and SMS Short-codes through SparkLMS  

3. RingCentral

With this integration, lenders will be able perform two-way calling, two-way SMS and SMS Shortcodes through SparkLMS With RingCentral + SparkLMS integration, the CRM Module of SparkLMS transforms into a full-fledged call centre.  Auto dialling or manual dialling of leads and customers directly from SparkLMS CRM

Secure Document Storage

With files scattered across different sharing tools, document management systems and storage infrastructure, lenders face an impossible challenge keeping data secure, processes compliant and teams on the same page.

Integrating Loan Management System with Cloud Storage services like Box and DropBox Business will allow the Loan Management System to automatically stores all the documents generated and received. Documents like Loan Agreements, Customer submitted documents like Pay stubs, Driving License, Bank Statement, Vehicle Document, etc are automatically synchronized to Lender’s Cloud Storage Account so that, lender has access to them all the time.

With all these integrations in place, SparkLMS has the unique capability to serve as the end-to-end Loan serving and Management platform for the needs of a lending portfolio.

In the next article, we will further discuss more integration options to empower a lending portfolio.

Thanks much for taking time to read through this article. If you are interested in a demo of SparkLMS, write to us at info@sparklms.com

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