Traditional bank vs. digital bank: who will win it?
The traditional banking model , as we know it, provides a physical place that is both a point for the collection of savings and for the exercise of credit. The bank itself has always been organized around branches and agencies: technology, incentive systems, customer knowledge, everything revolves around these physical places.
The challenge of the modern bank is precisely to go beyond the physical place and allow, on the one hand, to save through deposits and online investments, and on the other, to be able to get money without necessarily having to go through a physical agency. All thanks to the revolution made possible by digital, which allowed to focus on online platforms and data as a core element, making the agencies useless and obsolete.
Between the two litigants the third enjoys: the loan between individuals as an alternative model, with 100% digital soul and great importance to the human and ethical factor
Starting from the traditional bank and modern banking model, private loans want to go a step further . The challenge of social lending is to allow all this through a 100% digital and paperless user experience , with the advantage of knowing where the money invested for investors ends up: while in the bank there is little clarity and transparency about what is done investor money, in the case of loans between people, we know exactly where the money ends, that is to finance the needs and projects of life of other people, in a model in which the human and ethical factor assume a greater importance (the whole, between the other, through a process of evaluation of loan applications and very strict creditworthiness : in we accept 35% of the personal loan requests and here you can investigate the variables that affect the evaluation of a good or bad payer).
Yes, peer to peer lending is a valid alternative to classic financial services, to allow investments and loans between people in a 100% online process: all our activities on www..it, from the investment process to that of requesting a loan, going through the assessment of the creditworthiness of an applicant and any further need through our customer care, are carried out totally and strictly online.
“Online” is therefore our key word: we have a soul, a character, an internal organization and an operation that are 100% digital and online, with a computer or a smartphone as unique and only access channels to our services.
Online Marketplace: where transparency makes the difference!
We carry out an activity in which we believe a lot of times and have told you about how much we consider the business model of the loan more efficient and sustainable between that of traditional banks and financial institutions. In fact, the main reason is simple: doing all our activities completely online and without the help of physical branches, we guarantee a “better way to make a bank” because it is a “model without the bank” and its bureaucracy, lengths and costs that essentially affect customers.
Online registration: where speed matters!
In order to access our services and start investing or requesting a loan, an online registration is required: by connecting to www..it both from desktop and mobile (in a responsive version also optimized for use by mobile devices) and selecting or investments or loans will be redirected to the respective registration form and will take no more than 8 minutes to register , including uploading documents thus avoiding printing and sending paper documents. Any further analysis necessary after this phase always passes through the digital channels: Carlo may need to make some checks, in which case we ask customers for an appointment via Skype or Hangout.
Online pricing: certainty and immediacy of the installment to the applicant
A peculiarity that we have in and made possible thanks to the advantages and speed of digital, is to make a first and “light” interrogation of the CRIF database . By querying a smaller amount of data, in a few seconds we can tell the customer what the interest rate and the installment that will pay each month will be. This call to CRIF more “light” (in the sense that only later we will ask CRIF all the necessary data) has the double advantage of being together quickly and quickly return a certain and definitive installment, but also that of not having any impact on the creditworthiness of the client (which happens at the loan request, with the classic call and full query of the CRIF database).
Digital signature online: for a completely and strictly digital funnel
Even the signing of the contract has been totally dematerialized and released from paper and folders , thanks to the collaboration and security standards guaranteed by Infocert .
First in Italy in the field of loans between individuals, we have implemented digital signature of contracts for investors and applicants : to sign the contract it is not necessary to print anything or go to the post office for sending, but you receive a code via sms (using the mobile phone as a validation tool to further proof of our tech character) that must be inserted in a special field as personal signature to sign the contract.
Online match engine: diversify to minimize risk
Moreover, having a 100% online process means being able to serve many investors and loan applicants at the same time (without time limits or interminable queues in the branch) that are very quickly accessed through a “match engine” , without having to wait for the availability of a branch operator and subsequent negotiations and delays.
This match engine match also follows very precise risk management rules, among which one of the main ones is to maximize the diversification of investments . This can be achieved by adhering to the yield guarantee, which provides the protection of a highly diversified guarantee piggy bank, or by spreading the investment between several loans to reduce the risk in case there are insolvent applicants.