TransUnion Hong Kong Expands Solutions to Cover SME Segment Facilitating Better, Faster Access to Loans
- Credit data helps lenders better assess potential SME customers for risk from delinquency and write-offs
- Digital onboarding solutions offer a safe, easy, and friction-right user experience that limits drop-offs and maximises loan conversions
As Hong Kong’s first consumer credit reference agency, and as a global information and insights company, TransUnion (NYSE:TRU) has been expanding its specialist services to assist small and medium-sized enterprises (SMEs). In an age where SME lending is a digital priority for financial institutions, TransUnion is extending its credit insights data to SME lending services. This will help lenders provide better financial support for this important business segment which underpins Hong Kong’s economy.
By using SME credit reports coupled with individual reports and CreditVision scores held by business owners or shareholders which provide insights on consumer credit data, banks and lenders are now able to better assess the credit risk of potential SME customers and create a more holistic and comprehensive product portfolio. “Providing an additional source of data alongside wider SME underwriting data helps to more clearly quantify risk from delinquencies and write-offs,” said Jerry Ying, TransUnion APAC’s Vice President, Innovative Solutions Group. “Our comprehensive credit information database contains individual data that supports the SME loan approval process, thereby driving the ease of doing business and promoting financial inclusion for all.”
The COVID-19 pandemic has accelerated the digital transformation of the financial services industry, in which a data-driven, real-time remote onboarding process for customers is essential. TransUnion’s digital onboarding solutions, already adopted by virtual banks and money lenders in Hong Kong, will also soon be available for SME banking services. “Solutions that allow for a seamless digital onboarding experience are much-needed to fill a pre-existing gap,” said Ying. “Our solutions provide a flexible front-end so that banks and lenders can launch their digital lending portal in a matter of weeks, with full company and individual eKYC processes set in place.”
Data-driven digital systems for SME lending and underwriting
As the effects of the COVID-19 pandemic begin to have a greater impact on the consumer credit market, some SMEs are facing cash flow difficulties. Traditionally, SME credit underwriting would analyse the company’s assets and annual returns, but this may not reflect the full picture of SMEs where the owners and key shareholders may also have taken personal loans elsewhere. For some start-ups and SMEs, the lack of information on their assets and annual returns can deter them from seeking financial loans. As a result, banks and lenders require new solutions to better manage these SME portfolios.
TransUnion SME credit reports and CreditVision scores can help banks and lenders identify additional credit information that allows them to better develop their SME strategy and product portfolio. For example, individual credit data can reflect the credit history of the owners and shareholders, which is telling of how they manage their credit, and also provide insight on how these individuals manage their companies.
“With vaccinations planned after the Lunar New Year, there is some optimism that the economy will start to gain momentum again. But it is how lenders and SMEs are able to respond to the shifting environment that will ultimately determine the shape and speed of the economic recovery,” adds Ying. “SME credit reports and CreditVision scores support this recovery by bringing financial opportunities to both SMEs and lenders.”
Seamless digital onboarding solutions prevent drop-offs
Customers expect a seamless, digital experience across multiple devices and channels for banking and other services. However, the existing user experience is typically hindered by the manual, complicated process of operational screening and documentation that requires significant resources to demonstrate regulatory compliance, causing customers to drop-off midway during the application process. Sometimes, onboarding may even require lengthy face-to-face interaction which can be off putting and time consuming, particularly in a pandemic environment. For lenders, streamlined onboarding enhances revenue growth and achieves significant cost savings.
TransUnion‘s holistic onboarding solutions shorten the traditional onboarding time for SMEs from months to days or even hours, via automated and real-time document collection that accelerates instant regulatory compliance, supported by advanced search engines which help to screen out unnecessary information for AML checks.
TransUnion’s industry-leading TruValidateSM eKYC solution helps SMEs and lenders avoid the face-to-face interaction needed to facilitate their onboarding process, bringing together robust data assets and advanced analytics technology that links, interprets and analyses information to discover anomalies and patterns of risk.
The platform also brings together the services needed for lenders to onboard customers with confidence without sacrificing on customer experience. TransUnion’s API allows the quick onboarding of customers and with the help of messaging platform integration, nudges the customers along the onboarding process allowing for critical insight into improving the journey.
“Cost management has become increasingly important in the context of the challenging business environment, while at the same time, the pandemic has also changed the habits of consumers and businesses through rapidly accelerated digital adoption. Regtech can bring significant cost advantages to financial institutions, where eKYC is a key component,” Ying commented. “TransUnion’s solutions provide a smooth experience that enables our customers to onboard their customers in a quick and seamless manner, instilling customer confidence as well as reducing costs.”
The lending revolution: New solutions for money lenders
With the new licensing requirements introduced in 2021, lenders must be equipped with the tools to conduct proper credit assessments of existing and potential borrowers leveraging innovative data and analytics solutions. Coupled with the current low-interest rate market and abundant money supply, this opens up new opportunities for money lenders.
TransUnion CreditVision Daily Alerts offer money lenders information on the credit behaviour of the borrower across most of their credit lines. Market Insights & Intelligence Dashboard is a self-access portal that enables money lenders to conduct strategy reviews and portfolio adjustments. With TransUnion’s CreditVision Daily Alerts and Market Insights and Intelligence Dashboard, money lenders are able to better manage risk as well as finding growth opportunities.
TransUnion helps to provide global information and insights to ensure that each consumer is reliably and safely represented in the market, unlocking the doors to economic opportunity. Ultimately, TransUnion’s solutions help organisations and consumers transact with confidence and achieve great things.