In recent times, Financial Technology or FinTech has become well-known for its fast-paced innovations in FinTech markets: Financing, Asset Management, and Payments. As the worldwide FinTech market is expected to reach $16,652.68 billion by 2028, it is crucial to stay abreast of the most recent financial service delivery techniques.
Following this, it is essential for lending institutions to consistently adopt new approaches and gradually migrate from traditional to alternative data. Smile API utilizes this strategy for lending institutions and provides an API that enables borrowers to communicate employment and income information with lenders effortlessly. Lending institutions will no longer have to undergo lengthy onboarding procedures.
The Data Headache for the Lending Industry
The lending industry comprises central banks, retail and commercial banks, internet banks, credit unions, savings, and loans associations, investment banks, investment companies, brokerage firms, insurance companies, and mortgage companies. Most of these companies follow traditional credit scoring, which involves acquiring employment data and proof of employment on their own. Typically, they do not have real-time access to this data which is often inaccurate and difficult to verify.
With alternative credit scoring, however, lending institutions can get better coverage, real-time access, and the most up-to-date, comprehensive, and reliable information on borrowers' identities, jobs, and income via alternative credit scoring. To determine if a borrower qualifies for a loan, these institutions don't have to waste precious time calling financial institutions like SSS, GSIS, Philhealth, Pag-IBIG, and the borrower's employers.
How Smile Can Help
Smile operates specifically as an invisible bridge between borrowers and lenders. It offers an API that makes it easier for borrowers to supply relevant information when requesting loan approvals, as traditional credit scoring may be difficult for lenders. Thus, the onboarding process is more efficient and reliable.
More precisely, when a borrower submits an online application for loan approval, they must include basic information like their full name, address, gender, contact information, civil status, and employment status. Smile's single API coverage comprises data from the social insurance platforms listed.
Given all those processes, it could be tedious and even take weeks to verify thoroughly– and is prone to data inaccuracies. But with Smile, this is all done simply, securely, and seamlessly! Smile's single API will do everything in real-time and with the end user's consent.
How Safe Is Smile?
Now that you know what the Smile API does, you might wonder about the safety of using it and how secure it is for lenders and borrowers. There’s no need to worry!
Since the data is encrypted while it is being transferred and the only connection is between the user and the lender, the information is safe and strictly confidential. More specifically, Smile's API employs a strong authentication that all data will only be shared once the end-user authorizes it to guarantee the safety and security of all data.
Smile and the FinTech Industry
Smile API made a firm commitment two years ago to contribute significantly to the FinTech industry by creating trust and ensuring security for all of its clients and potential clients.
Together with other prominent FinTech businesses, the company supported an RPA whitepaper that discusses the benefits of RPA-based APIs in the Philippines and internationally to facilitate Open Finance. Smile also partners in this year's Brankas Open PHinance Challenge, where they will offer startup mentorships.
Smile API Elevates the FinTech Industry
Smile API embodies a new and revolutionary concept that will elevate the FinTech industry by providing lenders and borrowers with valuable, real-time, comprehensive, and verified data.