Finastra unveils an integrated consumer loan product

Finastra today unveiled its integrated consumer lending solution, enabling access to traditional regulated lending options for consumers at the point of sale (POS).

Financial institutions, distributors and merchants will benefit from a platform that allows their customers to easily access lending options.

For end consumers, Finastra Embedded Consumer Lending aims to make the buying process as easy as possible, offering consumers more options and an alternative to the Buy Now Pay Later approach, which is often not applicable to high value purchases. For merchants, the BaaS platform provides access to many lenders and their specific products. And for financial institutions, Finastra Embedded Consumer Lending provides access to a marketplace of distributors and merchants to distribute their banking products.

Jeannette Kescenovitz, Senior Director, Solution Management, Banking as a Service and Orchestration at Finastra said, “Finastra’s Embedded Consumer Lending solution provides financial institutions with a direct path to growth by offering lending through Finastra’s digital point of sale. a seller. The solution strengthens connectivity and relationships between financial institutions and distribution organizations that integrate merchant point-of-sale lending solutions. »

Josh Williams, EVP, Chief Banking Officer at Seattle Bank, said, “Banking as a service (BaaS) is a critical part of our growth strategy and the integration of consumer point-of-sale lending opens up a new channel to provide financing to customers that we could not have reached before. This cost-effective solution offers consumers a more secure and regulated alternative to point-of-sale financing. As a trusted partner for many years, Finastra is the ideal orchestrator as we connect and scale on our integrated financing offering. »

Finastra’s Embedded Consumer Lending exposes APIs on Finastra’s open platform with which third-party vendors, such as Loanstar Technologies, can integrate. Loanstar Technologies offers industry-leading technology to connect lenders with borrowers, creating POS consumer loans through their merchant network across many verticals.

Andrew Turner, CEO of Loanstar Technologies, said, “Working with Finastra will allow us to grow significantly, providing access to hundreds of financial institutions, like Seattle Bank, across the United States. As a trusted provider of critical financial services software, Finastra will help us connect with the right banking providers to bring in billions of dollars in new liquidity to fund POS loans with our merchant customers.

Integrated with Finastra’s core lending and origination systems and hosted on Microsoft Azure, the solution enables financial institutions to process loan applications at the point of sale, including identity verification, decision making, facilitation of electronic signature, as well as account creation and funding (through the bank’s central banking system). Using APIs and event notification systems, third-party distributors can provide real-time information to merchants and consumers about loan status.

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