Over recent years, Madiston has added many facilities to our Digital Banking and Lending Platform, not least Buy Now Pay Later and enabling technology for a Direct Loan Exchange (generic loan marketplace). Madiston’s design aim has always been to automate all processes capable of automation – even those that others deemed unnecessary or too difficult. We did that so that our Platform could be operated with the minimum number of people, bringing profitability quicker to users of our software.
We are committed to staying at the forefront of financial services technology and we share below some of our exciting Fintech projects underway.
The Madiston Platform is the perfect balance between “off the shelf” and “low-code configured” technology for online lending models. If you would like more details about any of these projects and how we can work together to implement them (or any other lending model) for your own organisation, please contact us.
Direct Loan Exchange
- highly automated, online regulated and unregulated Direct Loan Exchange (DLX)
- lowers the cost and capital requirements, compared with the institution’s current operational arrangements
- reduces the cost and time to market
- institutions can participate as market members, to the extent that they wish, on a short lead time to market with an implementation cost and a “pay as you go” cost model
Portal for Regulated/Unregulated Loan Markets
- write your own browser based “user portal”, for both lenders and borrowers, using our Web based API User Front-End Template as the mechanism for access to our platform – quick and seamless access to all the function in our comprehensive lending platform
- use this facility to establish your own branded Institutional Direct Lending Marketplace or online generalised loan market – faster to market, lower launch costs, access to end-to-end, compliant lending processes
Full Front-end Function API & Mobile App
- available within the current version of the Madiston Platform software
- for Android smartphones and tablets currently and will be available for IOS smartphones shortly
- whole lending lifecycle including API endpoints for new Mobile App features to speed up onboarding (including capturing passport and ID card information by smartphone camera and “selfie” for verification) credit risk, affordability checks, and full loan processing
- communication via SMS messages to save customer services teams time and ensure all parties stay properly informed at every stage, pre-decision, at loan distribution and throughout loan servicing.
Open Banking - ID, Credit and Affordability Checks
- Madiston plc has been prototyping with the APIs and developer tools available to enable user authorisation systems and access to their bank accounts via the Open Banking system – giving greater access to meaningful real-time data, analysed instantly for quick, informed decision-making.
Open Banking - Account to Account (A2A) payments
- Madiston plc has been prototyping with the APIs and developer tools available to enable direct account to account (A2A) payments via the Open Banking system
- Demonstration of the Open Banking payment app operating is available within the Madiston Platform
- A2A payments is changing the payments landscape, giving quick and easy methods to initiate transfers or request payment.
Offers to Lend
- In Online Direct Lending or Marketplace Lending, transactions are generally driven from the Loan Request from a borrower. This new development allows institutions to drive the process of lending and attract the most appropriate loans for their funding requirements. For example, an institution may want a fixed interest rate but to generate a diverse lending portfolio with property, business or consumer lending (including Buy Now Pay Later or Employee loans). This enables lenders to set their own terms, breaking portfolios down automatically across a broader range of asset classes to increase security and minimise risk.
- Alternatively, lenders may wish to control their funds by presenting specific lending propositions and only allow qualifying borrowers to “pitch for” funding.
- This function can be used by institutions, retail investors or both alongside each other, giving lending firms maximum opportunity to access diverse funds whilst maintaining liquidity.
- Our existing software has a stardardised approach to working with multiple currencies, which means that all currencies, fiat or crypto, can be managed in user portfolios for deposit, withdrawal, payment or exchange (see below).
- This offers flexibility to lenders and borrowers alike and opens up many opportunities going forward as crypto currencies become more mainstream.
FX Transactions within the Platform
- Users can hold different currency accounts (fiat or crypto) within the Platform and transfer funds within those accounts at the prevailing exchange rate.
- Users can withdraw funds or make Account to Account (A2A) payments to third parties in any currency at the prevailing exchange rate.
- This gives the lending institution more revenue generating opportunities and gives greater flexibility to all users of the system.
Distributed Ledger Technology (DLT), Blockchain, Smart Contracts
- We have researched and identified beneficial areas for FinTech organisations where DLT and Blockchain may improve or extend our applications.
- We are looking to work with R3 using Corda to build a Proof of Concept (POC) for a Smart Contract for a loan covering aspects of loan origination, loan funding and ongoing loan servicing.
Salary Deducted Loans
- provides new opportunities for revenue generating loans at less risk to the lender because payment comes directly from the employer
- Our system uses FCA compliant automated processes to protect the borrower and ensure the lender remains in control of its regulated activities, operationally and in reporting.
- personal borrower product that performs as if borrowing on a credit card
- monthly repayment could be from the minimum with interest for the month, up to complete repayment of loan plus interest at month end
- lender product provides a one-month commitment, with roll over if required at month end
- this type of rolling credit will challenge expensive credit card debt, which stands at over £50bn in the UK
- Flexible lending will provide another class of revenue generating short-term loan product that will appeal to lenders looking for blended risk in their portfolio.
Pre-paid Debit Cards
- pre-paid debit cards and peer to peer funded credit cards
- functions already in our software for loans that mirror borrowing via a credit card
- this provides another way of smoothing out purchases that has seen “Buy Now Pay Later” grow exponentially over recent years
Invoice Discounting for businesses
- Method used by companies to improve cash flow by getting an immediate cash advance against their invoices with longer payment terms, eg 30, 60 or 90 days. An unregulated activity.
- effectively a new borrower loan product and a new lending investment product
- for the borrower it is a higher interest form of borrowing and therefore generates good levels of interest for lenders (and fees for operators of the site)
Most of the above projects are completed and available now. A few are work in progress. if your firm has a particular interest in any of these facilities, please get in touch to discuss how we can deliver the Fintech software platform that you seek.