For those who are dedicated to the granting of money loans it is very important to ensure in advance of the identity and the solvency of the applicant. Comparing with the current ones, the mechanisms for the previous authentication of clients that existed years ago were more cumbersome and less effective.
However, advances in technology have changed the rules of the game. Not only that the request for small credits (or “micro-credits”) is done mostly through online platforms of the lenders, but the verification of the clients is done through tools that work in real time.
In this article you can find out about the tools currently used by the most important lenders for the granting of loans online .
How do authentication tools work on online loans?
When a person needs to get fast money , an excellent possibility is to apply for a loan online.
One of them is AtrapaCrédito ( www.atrapacredito.com ), a Spanish company whose portal offers a wide variety of loans of up to € 5,000 with the possibility of repayment in up to 36 months.
The mechanism of many of the online loan companies is really simple . The applicant enters some personal information (such as full name and email address), then goes through the verification process and if successful, the loan is granted. In the case of AtrapaCrédito, its statistics indicate that 90% of clients obtain the credit they request.
As is reasonable, the lender companies have the so-called ” authentication tools”, designed to verify that the person requesting the on-line loan is who it really should be and, in addition, that it is in a situation of sufficient financial solvency to pay the loan, interest and fees within the period requested.
So it is necessary for the credit applicant to enter the access data to their online bank, after which the tool will analyze their solvency data (for example, account balance, monthly income or possible pending fees) and Send this information to the lender so that the lender can decide if the applicant meets the conditions necessary for the loan to be granted.
It is important to note that once this process is finished, the tool will erase your access data to online banking so that no one else can enter it again. They are programs that work with complex encryption and encryption systems, to prevent any third party from accessing the applicant’s data.
It is true that the fact of having to provide the access data to your virtual bank can generate distrust in the applicant. But you should not be alarmed by this, since these tools we are talking about are safe and are designed so that there is no change in the data of online banking or of course, no movement of money.
The most used companies
The benefits of these tools or programs are such that more and more companies are incorporating them into their online loan platforms.
The three best known are Instantor, Pich and Kontomatik .
Instantor is a tool of Swedish origin, based in Stockholm. Operates internationally, taking charge of the identification, access and review of the status of the bank accounts of the applicant in any virtual banking service.
In addition to its efficiency, Instantor is characterized by its high level of security. It has the SSL certification, issued by an international certification authority called “VeriSign” on online transaction protection.
Another of the companies that are dedicated to verify identity and solvency is Pich , whose tool is called “Verify”. It stands out for its security, since it imposes rigorous measures to ensure that its infrastructure is protected against unauthorized access at all times. It is also characterized by being flexible and simple configuration, which means that the lender has full control to adapt the tool to the needs of its online credit platform.
Among these tools there is also Kontomatik , with 8 years of experience, available in 10 countries and with more than 120 supported banks. According to its website, it is very easy and intuitive to work with this tool, since it can be put into operation in just a few days and with the permanent support of its team of experts.
For Kontomatik, security is also a key aspect and therefore they constantly update their technology. In addition, every year, this tool incorporates new countries and expands coverage in places where it already has activity.
A benefit for all parts of the fast money market
The use of these tools is advantageous for both the person requesting the loan and the lender.
From the point of view of the speed of the process, the tools authenticate the personal identity of the applicant and their credit information in real time . That is to say that once requested the micro-credit, the lender company will have almost immediately the possibility of deciding whether to grant it or not.
This is something of great value for the applicant, since in many cases urgent money is needed and the delay in having it can bring many problems.
Previously, the companies demanded the electronic transmission of a copy of the personal identification and other documents related to the state of the bank account. However, this process did not work as quickly as the tools we describe allow. Even with a saturation of loan applications, customer verification could take several days.
From the point of view of the lending company, tools such as Instantor also represent great advantages. The possibility of immediately having the solvency information of the applicants allows to make quick decisions and solve the orders with greater agility.
In addition, the information provided by the authentication tools is very reliable as it is obtained directly from the virtual bank of the person requesting the micro-credit, giving the best references on the possibilities of collecting a loan and fees and clearing a very high point. High the possibilities of fraud.