Australian financial technology company Beforepay has introduced a commercial version of its risk management and lending platform. Referred to as Carrington Labs, this new offering provides enterprise clients with access to Beforepay’s technology and artificial intelligence tools that drive its lending products. According to a press release on Monday (March 4), Carrington Labs will comprise two key products.
The first product is a decision engine that integrates AI-powered risk management modules, leveraging alternative data to facilitate rapid and precise lending decisions in a fully automated and cost-effective manner. The second product is an end-to-end loan origination and servicing platform, an advancement of Beforepay’s existing lending platform. Despite having a team of fewer than 40 employees and outsourced offshore customer support staff, this platform is capable of originating an average of 35,000 loans per week.
The end-to-end solution aims to streamline a completely digital lending journey, enabling customers to complete the process from account creation to fund reception in as little as 5 minutes. This can be achieved entirely through a smartphone app or an optional web interface. The platform combines origination, loan management, and an optional front-end experience in an integrated and efficient manner.
As highlighted by PYMNTS earlier this year, artificial intelligence is set to revolutionize the landscape of small and medium-sized business (SMB) lending. While traditional lending institutions historically focused on the five C’s of a business owner’s character, capacity, conditions, capital, and collateral, contemporary lenders prioritize credit scores over character assessments. The advent of AI-powered loan decision-making is reshaping the provision of working capital and financing to SMBs.
AI-driven algorithms now analyze various factors such as financial history, credit scores, and business performance metrics to make lending decisions, marking a shift away from character-based lending towards data-driven assessments. This transformation underscores the evolving sophistication of banks in leveraging data and AI for intelligent decision-making in loan offerings.
