Credit delivered through software.
WHAT THE MODELS ARE
Short-term consumer lending Buy now, pay later at checkout Merchant and business lending against revenue Salary-linked advances Asset finance
WHAT DIGITAL LENDING CHANGED
Decisions in minutes, from data rather than documents.
WHAT THE DATA TYPICALLY INCLUDES
Bank transaction history Repayment history with you and others Identity verification Employment or revenue evidence
WHAT OPEN BANKING ENABLES
Access to transaction data with the customer's consent.
WHY THAT MATTERS
It substitutes for documents that many borrowers cannot provide.
WHAT THE CENTRAL RISK IS
Lending to people who cannot repay.
WHAT THAT REQUIRES
Affordability assessment, not only identity and willingness.
WHAT COLLECTION PRACTICES MUST NOT DO
Contact people not party to the loan Use threatening or shaming methods Access contacts or messages without clear consent
WHY THAT MATTERS ENORMOUSLY HERE
Abusive digital lending practices have attracted regulatory action and public harm.
WHAT TO BUILD INSTEAD
Clear terms Reminders before due dates Restructuring options A complaints route
WHAT TO MONITOR
Default rates by cohort Collection complaints Repeat borrowing patterns indicating distress
WHAT OBLIGATIONS APPLY
Consumer credit and data protection rules. Take advice on your position.
