Lending a hand: How FinTech companies can partner so everyone wins

[Editor’s note: This is a white paper from Trustly. Trustly is a Bronze Sponsor at LendIt Europe 2017, which will take place on October 9-10, 2017 in London.]

In the fast-moving FinTech sector, loans are probably one of the most commoditized products that a company can offer. So how can you differentiate yourself from other loan companies? You can attract customers with aggressive marketing tactics, competitive pricing or an unbeatable product. Of the three, product is arguably the most sustainable when it comes to retaining loyal customers.

What do consumers want?

Across almost every industry, consumers crave convenience, and the lending sector is no exception. Specifically, consumers want a simple application process, instant access to liquidity and hassle-free repayments.

On the other hand, merchants value things like mitigated risk and reduced administration. One company, peer-to-peer lending platform Lendify, added smoother payments to that list.

A fairytale FinTech partnership

When Lendify wanted to streamline the loan process between private individuals by simplifying the transaction process, it turned to Trustly for help.

Lendify uses technology to help modernize the loan market by linking individuals who want to borrow capital with investors who want to invest in loans to creditworthy borrowers. By directly connecting these groups, Lendify is able to provide competitive rates for borrowers and attractive returns for investors. Through Lendify’s platform, private individuals and companies can invest in an asset class that previously only has been accessible for banks.

Lendify called upon payment service provider Trustly to simplify another aspect of the financial process. Trustly’s instant solution for direct bank transfers and online payments allows investors via Lendify’s platform to transfer money immediately after registration, instead of having to wait one business day for the transaction to clear through the conventional clearing system.

“With Trustly, payments to and from our platform will be easier and smoother. Investors will be able to transfer funds directly without having to leave Lendify’s platform,” says Erika Eliasson, Chief Investor Relations Officer of Lendify. “Being able to automate more parts of the loan process relieves the administrative burden and streamlines the loan market even further.”

“This is yet another example of how two innovative FinTech companies can partner to create user value that cannot be achieved through traditional services and solutions,” said Johan Nord, Chief Commercial Officer at Trustly. “By making it easier for end users to directly invest their funds, we see an increase in both consumer interaction and conversion rate.”

A versatile solution

In addition to Lendify, Trustly’s payment solutions are used by a variety of other FinTech companies because they are so versatile. Offering instant pay-ins and pay-outs, KYC support and real-time authentication of account holders, companies like TransferWise, PayPal and Western Union find applications for Trustly.
Interested in learning how Trustly can help your company? Visit trustly.com/en/financialservices.

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