FinTech Magazine May 2024 | Page 74

LENDING AND CREDIT
And , once engagement can be had with these consumers , tailored products and services can be offered to fit their specific needs .
As Sesko explains , fintech innovations are empowering underserved communities by leveraging personalisation and accessibility to expand access to credit and lending products .
“ For example , companies like Basis leverage alternative data sources and technology to help more consumers get financing for their dental care .
“ By offering loans through digital experiences , these fintech solutions bypass the need for physical bank branches , making financial services more accessible to those in underserved areas or with limited mobility .”
Valuable insights from consumer data The accessibility of services made available to the underserved comes from bespoke offerings designed from a consumer ’ s individual data .
As Sesko notes : “ Accessing consumer data can provide invaluable insights into a person ’ s financial health , enabling more accurate risk assessments and personalised financial solutions .
“ Through the utilisation of transactional data , spending habits , bill payment history and other financial behaviours , lenders can build a comprehensive profile of an individual ’ s financial health .
“ For instance , companies like Credit Karma leverage consumer data to offer personalised recommendations for credit cards and loans based on a user ’ s financial habits and goals .”
Filling gaps in the consumer credit ecosystem While embedded lending technologies have continued to fuel convenience for consumers , it has also exposed a gap in the consumer credit ecosystem .
“ Today , the fusion of technology and finance continues to offer unprecedented convenience , accessibility and speed for consumers ,” continues Sesko .
74 May 2024