Singapore’s moneylending industry is not left behind in the country’s digitalisation efforts thanks to Lending Bee’s breakthrough solution. Recently awarded a FinTech licence from the Singapore FinTech Association (SFA), their proprietary solution helps fellow moneylenders reduce bad debt, digitalise business procedures, with cost savings for both borrowers and lenders.
Harnessing the enormous amount of data from Lending Bee’s parent company Credit 21 Pte. Ltd.’s 15 years of business operations, and with the help of Artificial Intelligence (AI) to crunch through this unique data, the company has created its own Credit Worthiness System. This system utilizes past data and lending behaviour as well as psychometric insights to assess loan applicants’ creditworthiness.
For users of this breakthrough solution, the innovative system has helped in the decision making process and kept risks manageable. It does this by evaluating and recommending approval of unsecured personal loans if applicants with poor credit scores show commitment to make better financial decisions, and gives preference rates to applicants with a good track record of credit repayment.
For licensed moneylenders in Singapore, this unique system has helped to lower bad debt and the cost of borrowing, generating cost savings which can be passed on to borrowers.
“Licensed moneylenders have been faced with increased business costs. We realised that as a lender pain point and using technology and our accumulated data, our solution helps evaluate and allows lenders make better loan decisions, reduce cost of borrowing and controls cost,” said Kris Liu, Managing Director of Lending Bee.
This solution has also helped many traditional moneylenders start their digitalisation journeys and set up digital business capabilities for the future. With the personal loan process being enhanced and moved towards paperless transactions, benefits for users include: time taken is greatly minimized; reduction in both manpower and human error. This has led to lowered business costs.
In 2019, Lending Bee was one of only six firms selected by the Ministry of Law to pilot new
business models for moneylending. These firms have fulfilled stringent requirements and are part of an initiative to protect borrowers via digitalised loan processes to lower cost and provide better terms to those with good debt repayment habits.
Honoured to be given the opportunity to transform the moneylending industry and with SFA’s FinTech Licence’s affirmation, Lending Bee will continue to innovate and lead the way to lifting the standards of the moneylending industry.