Buy Now Pay Later digital loans

Buy Now Pay Later (BNPL), a point-of-sale digital financing solution, allows retailers, e-commerce players and other stores to offer their customers the capability to finance their purchases instantly and repay later. With its ability to drive additional sales, BNPL is fast gaining popularity as a preferred payment mode in the retail world. As per SP Global, BNPL digital loans market is expected to grow almost 400% by 2025. We design, develop and configure computer hardware and software for banks and other organizations in the lending industry.

In BNPL, lenders carry out a quick evaluation of a customer basis few parameters & credit score without involving cumbersome loan application forms. In most instances, BNPL allows paperless evaluation where customers are provided with a credit limit almost instantly. Though these new age lenders with BNPL models have been able to innovate quickly, the lack of comprehensive credit checks and higher risk levels is a cause of concern for long term sustainable operations. Banks with massive wealth of data built over a long time with which they can assess risk more reliably. To capitalize on the opportunity, banks will have to strike a perfect balance between innovation and caution.

There are various combinations of features which lenders are bringing for their BNPL offering to distinguish them from other players such as providing different combinations of interest free period, minimum amount due, periodic statements, grace period etc. These limits are also periodically reviewed on the basis of customer’s buying patterns or repayment consistency. And, since this model has low ticket size and high volumes, so lenders need to look out for platforms, which are robust, flexible and scalable.

FinnOne Neo enables lenders to set-up BNPL products and configure differentiated offering based on rich parameters & configurations. Lenders can set-up limit & on-board customer through their own origination platform or they can have arrangement where their partners can originate the customer limit and BNPL loan can be directly booked in FinnOne Neo LMS through APIs. The solution provides capability of defining interest computation method, setting up of minimum amount due and generate monthly billing allowing users to define separate billing & payment date. Billing statements are generated periodically which provides detailed information on the limit amount, transactions done during the period, amount due and payment date. FinnOne Neo supports end-to-end journey of BNPL loans through digital capabilities such as plug-n-play APIs, STPs and schedulers which are some of the key capabilities required for the BNPL loans programs to be a success.