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A LIST OF POPULAR DIGITAL LENDING PRODUCTS BANKS SHOULD HAVE

A list of popular digital lending products banks should have

Financial institutions can expedite lending with the use of digital lending solutions, and they can provide self-service digital loan experiences to their clients. The system, which aims to make loan origination simple, makes lending a quick and pleasant procedure and supports customer-centric digital experiences at scale. 

Banks may get a list of the most popular digital lending products that banks should offer in this post from SMARTOSC Fintech.

Credit Cards

A LIST OF POPULAR DIGITAL LENDING PRODUCTS BANKS SHOULD HAVE

Definition

Credit Cards are a particular kind of credit instrument that combines a line of credit and a payment card to provide flexible access to (relatively) small unsecured money for both personal and business use.

  • Credit Cards are classified as Revolving Credit for Basel II reasons.
  • Definition of the Credit Card product by FIBO

Details of Credit Card Products

A credit card also involves a credit card business running the payments digital lending products system, in addition to the credit institution assuming the credit risk.

  • The buyer and/or seller may be charged fees for using the card to make payments.
  • Calculating interest rates: When bills are paid in full within a given time frame, there typically aren’t any credit fees. Unpaid debt has a variable interest rate.
  • Typically, each period has a minimum payment requirement.
  • Usually, there is a credit limit.

Mortgages

A LIST OF POPULAR DIGITAL LENDING PRODUCTS BANKS SHOULD HAVE

Definition

A mortgage loan is a type of loan or credit, which is a type of financial product. A loan secured by real estate or other types of digital lending products property. (A loan secured by a piece of real estate.)

Properties

Whether the borrower resides in the area where the property is located is determined by the term “domiciled mortgage.”


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  • Loan Term: How long the loan or credit agreement will last.
  • Loan Type: The kind of credit or loan.
  • Amount: The financial sum.
  • Grace Period: The amount of time the borrower has to fulfill its obligations after any due date before a default (failure to pay) is regarded as having happened.
  • Money: The unit of currency used to express the monetary amount (in 3-letter ISO 4217 format).
  • Assets needed to secure the repayment of a loan or credit are known as required collateral. Digital lending products could appear as a third-party guarantee, merchandise, or financial instruments (cash, securities, etc.)

Consumer Loans

A LIST OF POPULAR DIGITAL LENDING PRODUCTS BANKS SHOULD HAVE

Definition

Any of the many different loan products that consumers employ are referred to as “consumer loans”: These consists of credit lines, student loans, and auto (vehicle) financing. Consumer loans are different from the debt owed on credit cards and mortgages that are backed by real estate.

Types of Loan

There are several different kinds of consumer loans in digital lending products:

  • Loans often have a short- to medium-term life (up to a few years)
  • Interest rates are calculated using a variety of rates, including foreign exchange rates, and can be fixed or variable (floating).
  • Whether a loan has collateral or is unsecured (e.g. the car)
  • How money is advanced (line of credit, term loan, installments)

Corporate Loans

A LIST OF POPULAR DIGITAL LENDING PRODUCTS BANKS SHOULD HAVE

Definition

Any of a broad range of loan products employed by commercially oriented legal entities is referred to as a corporate loan. These range from bilateral loans given to businesses with various legal structures (SME Lending) to syndicated loans given to large corporations.

Types of Loan

There are many different kinds of corporate loans in digital lending products. Aspects of loans include the following

  • Loans often have a short- to medium-term life (up to a few years)
  • Calculation of Currency Interest Rates: Reference different rates, including foreign exchange rates, and can be stable or variable (floating).
  • Whether the loan is secured by collateral or is insecure (e.g. company assets)
  • How the money is disbursed (line of credit, term loan, installments)
  • What will be done with the money
  • Loan Conditions

The digital lending products make it easy to manage retail, commercial, and corporate loan journeys across numerous internal and external stakeholders using a single, adaptable, and effective approach. Please get in touch with SMARTOSC Fintech if you have any concerns or if you would like further details.

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