How we created a Direct Debit System to generate and manage mandates for debits on their customers’ accounts as a lending company.
The Client: Lendsqr
The Leading Lending Institution Lendsqr provides loan businesses with the opportunity to build, launch and scale easily and profitably. Their comprehensive end-to-end digital lending stack automates the entire credit lifecycle for loan businesses. Their extensively configurable loan decisioning workflow helps to manage and optimise the lending process and easily adapt offerings for borrowers. They are trusted by over 3,000 lenders who they provide the technology and data to run smooth loan business operations. With their efficient automated features, businesses can easily provide streamlined loan experiences for borrowers and access to bank data to enable lenders to make informed loan decisions.
How we helped
THE PROBLEM
With the introduction of the new NIBSS EasyPay mandate system, the client wanted a debit management system that can schedule debits on borrowers’ mandated accounts for repayments without the use of ATM cards and existing direct debit schemes which have proven to be limiting with continual cases of NSF (non-sufficient funds) and fraud.
THE SOLUTION
We developed a Direct Debit System that enables the client to create mandates, view balances in borrowers’ bank accounts that the mandates are connected to, and debit borrowers’ bank accounts instantly. The borrowers can schedule these payments at a frequency that best suits them.
THE OUTCOME
The Direct Debit payment method was made available both as a manual interface for the clients operators to use and as an API for internal bank applications. The platform is a secure way for lenders to manage borrowers’ payments and eliminate the need for manual or card repayment transactions.
The Approach and conclusion
The Direct Debit System solution was created to address the setbacks associated with the NIBSS EasyPay mandate system and the use of ATM cards for repayments. The production process involved working with dedicated developers to capture product requirements, design, implementation, product testing and product launch. The system was developed to enable the client to manage mandates and transactionson the portal and via APIs with the use of API keys. Now, repayments have become a lot more seamless, secure and efficient for the client.
Key Takeaways
Innovative Transformation: The Direct Debit System aligned seamlessly with Lendsqr’s current processes and optimized their repayment management. Enhanced Borrower Experience: Borrowers could automate the repayment system and now have access to a more secure and seamless loan management system. Robust Integration: The use of APIs and secure authentication mechanisms streamlined the repayment process and eased issues associated with the NIBSS EasyPay system.
