Release 7.5 (30 March 2021)

Open

In the inaugural release of 2021, we’ve made significant System improvements aimed at further lending processes streamlining for consumer and peer-to-peer lenders.  

In TurnKey Lender 7.5 we’re excited to present simplified batch data import, seasonal schedules, advanced aggregated risk scoring section, new P2P investments management features, credit lines module, and much more.

Let’s dive right in.

Brand-new aggregated risk scoring for underwriters 

We are constantly improving our scoring methods and increase the amount of data we process to help you make informed credit decisions. To showcase all the insights to you at a glance, we’re happy to present the brand-new look of the Risk score section of the TurnKey Lender system.  In v.7.5 we’ve done a floor-to-ceiling reimagining of the way underwriters work with credit scoring data and decision rules to present all the necessary autoprocessing and credit decisioning information in one place.  

In v.7.5, all the risk scoring steps of a loan application are located in the Risk score tab of the Underwriting workplace where the System decision is calculated. For every scoring element, you get a dedicated block with flagged decision rules, important details, instructions, and separate scores which are then factored into the Creditworthiness score and the System decision. An underwriter then makes the final decision on a loan application after analyzing all the scoring results and the System’s recommended decision.  

The new Risk score section allows underwriters to see all the analytics on each loan application instantly with data including: 

• Loan application (scoring and decision rules) 

• Credit bureau data (scoring and decision rules) 

• Anti-fraud checks (decision rules) 

• Bank statement scoring (scoring and decision rules) 

• Cyber security check (scoring and decision rules) 

• Geolocation check (decision rules) 

• Web activity/behavior check (scoring and decision rules) 

All of the above is processed to provide the Decision Summary and the Creditworthiness score with a single metric that evaluates all the data.  

The System indicates if it couldn’t carry out an analysis of any of the data sources for any given loan application and suggests a loan decision based on the decision rules and scoring data it has.  

Open

Major upgrade of the TurnKey Lender Calculations Engine

Start offering revolving credit lines to borrowers with built-in features 

By popular demand, TurnKey Lender credit products set has been updated to include full-fledged credit lines functionality which supports multiple disbursements within the same loan application.  

After each next disbursement, the System automatically recalculates the repayment schedule and installment amounts based on the credit product settings.  

The initial repayment schedule is based on the first funds tranche made within the loan. Credit line limit can be adjusted without creating new loan applications. 

• Credit lines in TurnKey Lender support revolving credit which enables lenders to build lasting business relations with borrowers keeping all the relevant data in a single place without multiplying loan applications. Embedding lending into your business, you can offer lines of credit for borrowers to use continuously within the loan terms you have agreed upon.  
  
  

To accommodate the needs of business and consumer lenders who extend credit for their products and services, flexible down payments can also be used with credit lines. As a lender, you can set the acceptable range of down payment for each credit product, the borrower will select the value that works best for them and the System will instantly recalculate the installments and schedule.  

• The notifications and disbursement fees that apply to credit lines have also been added to the System out-of-the-box to allow for an even more streamlined lending process on autopilot.  

• All the credit line data is natively communicated to the reports allowing for live and historic data gathering and analysis in the built-in reporting dashboards or in Excel. 

Fully operational seasonal loan schedule available out-of-the-box

Charge clients payments only in the months they use your product or build a schedule around a seasonal job, a scholarship, or the months in which they use your product. As a business owner, you can set the seasons and the terms in the system UI for any credit product type (classic, annuity, leasing, etc.) allowing lenders to ride the global trend toward the as a service economy.

A couple of months back, we've started working with an innovative startup that provides amazing robotic mowers to their clients. To make their products even more accessible, they needed a credit product that behaves differently depending on the time of a year. This same principle applies to a wide range of businesses who provide their products or services not year-round. This feature eliminates all of the work you used to need to do to arrange for a custom schedule of installment charging and interest recalculation. TurnKey Lender now can do that out-of-the-box within every credit product you create.

With this feature applied to a loan, the client doesn’t get charged in the selected months when they don’t use the equipment or services. And when the season to use your product comes, the lease-to-own or rent-to-own payments continue to be paid. These settings can differ by state or manual season selection within one credit product. The client instantly sees the calculated installments and the exact dates they will be charged.

Credit product settings and calculations flexibility that address the challenges of today

The interest for the months with no installments can be transferred to the installments for the active season evenly. You choose settings in the credit product and from there our software does the rest on autopilot.  

For example, let's say that an installment is $300 with an interest of 5%. If the credit product includes 3/6/9 months of no installments, we need to distribute the interest evenly so we don't surprise the client with a much larger payment and it’s not a strain on their budget after the pause.

More credit product settings lenders will be thrilled with:

• Apply custom fees only to the grace period

• New Distribution mode of accruals for seasonal schedules.

• New manual definition of the minimum required installment.

• Charge complex compound interest based on your specific requirements out-of-the-box

• Restructure the loan and offer credit vacation for the selected season.

Work towards quicker payouts and simpler reporting with equal loan payments 

When applying for a loan, the client can now specify the equal payment amount they can pay in each installment and the System will automatically round the payment to accommodate for the settings and range specified in the Back-office.  

The Back-office managers can change the equal payment amount for new and active loans at any moment to increase or reduce the initial amount.

One of the more common use cases for equal payments is in conjunction with multiple disbursements. When a new disbursement happens within an existing loan, the Principal grows and borrowers often have to pay more in the next installments. This amount can now be changed with just a few clicks without the need to create new entries or loan applications.

With a new equal payment sum selected, a loan schedule is recalculated. Depending on the credit product settings, an equal payment may only include Principal, Interest, or any other fees. 

Intelligent fees' accrual based on the loan phase

Additionally, from now on, lenders can use simple settings to decide when and how they’d like to charge fees and interest. For example, you can only charge them during grace period or during some other loan phase.
Let’s say you provide a borrower with a credit vacation or they don’t have to pay out their loan during some time. Then the fees, taxes, and interest can get pilled up and exceed the amount you can charge in the next installment.

The new fees accrual settings allow you to choose how you want to distribute the due payments and choose when you’d like to charge principal, interest, or other fees. For example, the borrower would be charged all of the accrued interest and fees in one month, and the principal can be rolled over to the next.

New accrual logic for interest and fees 

The new feature allows for a more robust management of accrued payments which now can be charged flexibly against the outstanding balance. At the same time, outstanding balance allows borrowers to instantly see the amount of money owed to repay their loan in full. 

Batch import of customers, loans, disbursements, and payments into TurnKey Lender 

In v.7.5, we’ve implemented the long-awaited upgrades to the loan migration functionality. With it, you can batch import various lending data into TurnKey Lender to ensure smooth business continuity as you transition your operations to our System.  

In cases when migrating by means of an API is too complex, often the most efficient way to transfer lending data is through Excel. Starting with v.7.5, to import customers, loans, disbursements, and payments, you need to download the Excel template from the Import section of your Dashboard, fill it out with the required data, and simply upload it into the System.  

Based on your Excel file, TurnKey Lender will populate the System with borrower profiles and their loans. In case there are any errors in the data, you will see the exact spots in the document where the software couldn’t read the information and fix it on a second import.  

The Excel template you’ll be using isn’t static. It’s generated automatically based on the Loan application settings specified in your TurnKey Lender instance.  

If disbursement data is filled in the imported file, then the loan appears in the Servicing workplace after import. If there’s no disbursement data - the application will be in the Origination workplace.  

In case you’re importing different loans or disbursements of the same borrower across several occasions, they will be matched with the existing customer profile or loan ID and added to the relevant entry automatically.  

It’s worth noting that in credit products like credit lines disbursement amount doesn’t always equal the loan amount. For this reason, you can import disbursements separately.  

Data you can batch import in TurnKey Lender 7.5 includes: 

• Borrowers 

• Loans 

• Disbursements 

• Repayments 

Imports of these data types can be done in groups or separately.  

Peer-to-peer investment management streamlining 

Provide greater investment flexibility to attract wider audiences of investors and borrowers to your lending operation.  

When an investor needs to withdraw their investment on any given loan, they can do it themselves if this option is enabled in the Back-office, or the lender’s employee can natively remove investments and create new ones. If the investment is withdrawn, the funds are deposited back to the investor’s account with any interest they may have earned.  

Depending on your business model, a funds withdrawal penalty can be applied or not. The funds' withdrawals need to be approved by a lender’s staff to ensure sustainable loan management.  

Other improvements  

Back-office user profile management 

Starting with v7.5, all the TurnKey Lender Back-office users can manage their personal (e.g. photo, account settings) and security details (e.g. password), as well as System preferences from their Dashboard. 

More flexible auto-charges

Businesses often need to charge bad debt and scheduled installments separately to accommodate for common compliance requirements. In v.7.5, we’re introducing more flexibility to the auto-charges.

By default, auto-charges are disabled and can easily be switched on. Select the model of work with bad debt and intuitively manage due payments.

Net promoter score 

At TurnKey Lender we value any input from our clients and to make sure we continue to tailor the System to meet the needs and wants of lenders, v7.5 includes the new Net promoter score accessible to back-office users. We will appreciate your honest opinion on your personal experience of using TurnKey Lender.  

That’s all the new features we have prepared for you in TurnKey Lender 7.5.

Stay tuned for more!