Written By- Jaya Pathak
Credit Platform as a Service or Credit PaaS is a cloud based solution which gets potential to the businesses to offer a wide range of credit products to customers without any need to build their own financial infrastructure from scratch. It provides compliance, risk management, operation support and the necessary technology. It allows businesses to integrate lending buy now pay later and credit offerings seamlessly.
Understanding Payment as a Service
It is that model of payment processing which allows businesses to obtain their payment processing needs to a third party provider. It provides a wide range of payment processing services including online payment processing and credit card, payment gateway integration, fraud detection and prevention.
Characteristic features of credit PaaS
- It provides back end infrastructure for credit related services.
- It enables quick deployment of credit products with minimal effort.
- In order to analyse the customer’s creditworthiness, it also uses AI and machine learning tools.
- It evaluates alternative data sources to improve risk assessment.
- It reduces default rates and hence enhances decision making.
- It provides customizable solutions to businesses.
- It offers APIs to integrate credit services with existing platforms.
- It offers businesses instalment-based payment options.
- It enhances the conversion rates for ecommerce and retail companies.
- It provides real time insights into the performance of credit.
- It helps businesses to optimize their lending strategies and manage risk.
- It can handle KYC, anti-money laundering and fraud prevention. Therefore, it reduces the risk of noncompliance fines and legal issues.
- It provides real time insights into credit performance.
- This AI driven fraud detection any identity theft and unauthorized transactions.
- It uses inscription and security protocols to protect the data of customers.
Benefits of Credit PaaS
- Previously, launching of upgraded service it required a month or even years of development, regulatory approvals, risk assessment modelling and integration with financial institution but with the advent of credit pass, this process has been accelerated as it provides ready to use infrastructure, APIs and compliance framework. Now there is no any need for extensive in-house development or expertise. Businesses can launch their credit services in weeks. This quick deployment allows the companies to capitalize on market opportunities on a faster rate.
- The traditional landing service comprises a high cost for infrastructure, hiring financial analysts, underwriting teams, compliance officers and fraud prevention systems. But with the arrival of credit pass these costs has been eliminated by providing a cloud based automated system. There is no any need for large financial teams as AI powered risk assessment has replaced manual on the writing. Additionally, there is hardly any need to develop and maintain in-house lending systems. It has resulted in improving operational efficiency as it has reduced overhead expenses.
- Customers can expect an instant credit approval along with seamless transactions. This platform uses an AI driven risk assessments and alternative credit scoring models which will improve loans in seconds instead of days. It will improve user satisfaction as they will get an instant credit decision. Through the help of mobile apps ecommerce platforms and digital wallets you know it can meet frictionless loan applications. Additionally on the basis of user spending behavior, they can get personalized credit options.
- Since it is a cloud-based platform, it is easily scalable. It allows businesses flexibility to expand their credit services without the need of any additional infrastructure costs. The businesses can scale lending operations effortlessly and seamlessly with the growth of demand. This model can be adapted by various industries including healthcare, travel, fintech and ecommerce. It will provide a customizable credit solution based on the specific need of your business.
- The cloud based platform uses AI machine learning and alternative data sources to understand transaction history and social media behavior, it will result in reducing the risk and prevention of fraud. The AI driven risk assessment can reduce the defaults and loans. The fraud detection algorithm can prevent identity theft and unauthorized transactions. Real time monitoring will help in identifying and stopping suspicious activities.
- The financial services must comply with strict regulations. The managing of compliance internally is quite complex and costly but credit passes handle all the regulatory requirements automatically, ensuring that the business will stay compliant. It has built in KYC and AML checks. It can comply with local and international financial regulations. It will reduce legal risk and potential fines.
- Businesses can generate new revenue streams through Internet rates, transaction fees and customer retention strategies by integrating credit solution. The credit passed allows businesses to offer credit as a service which increases its profitability. It will increase customer spending and retention through flexible credit options. It will result in improving cash flow management with automated repayment systems.
- Customers can interact with businesses through multiple channels including web, mobile, social media. The credit pass platform support Omni channel integration which allows users to access credit services across different touch points. The credit services can be embedded into website, mobile apps and POS systems. It can work across industries from retail and travel to healthcare and banking. It ensures a smooth customer journey which will boost the engagement of customer.
- Businesses which offer seamless credit services can gain a competitive edge over those who don’t. The credit pass enables businesses to differentiate themselves with custom credit solutions and use their experiences more betterment. It will attract more customers as it will provide convenient credit options. It will enhance the brand loyalty and engagement. Future proofs businesses and our digital first economy.
Why businesses should adopt credit PaaS?
- It will reduce the checkout friction and improve conversion rates. It will enable BNPL which will increase customer purchase for e commerce and retailers.
- It will help in the launching of digital lending products quickly. It will reduce operational costs and risk management burden for Fintech and Banks.
- It facilitates credit as a service for business clients. It will provide working capital financing solutions to SaaS and B2B companies.
- It will enable instalment-based payments for expensive medical procedures in the healthcare industry.
- Students can pay their tuition fees using instalment-based payment method. It will make their services more accessible to a broader range of audience.
