FINSTREET has announced the launch of FINSERV, an AI-powered platform that helps brokers find non-bank loan products for underserved borrowers through technology that assesses non-standard risk.
From the complexities around finding products for migrants and SMEs to understanding risks like climate change and cybersecurity, FINSERV pulls data to recommend solutions and paints a clear risk profile of Australia’s often overlooked sections of society.
“FINSERV allows brokers to quickly find dynamic non-bank options, provide fast assessments and a path to funding for their clients that traditional lenders overlook,” said Darren Liu (pictured above left), executive director of the mortgage manager fintech.
The main thing to know about FINSERV is that it’s not just another CRM software package, according to chief technology officer Hansen Liu (pictured above right). Instead, it’s a system that acts as a gateway to non-bank lending.
Essentially, an integration hub brings data together from different lenders, FINSTREET’s database, and other data sources.
“Data fed into the systems come from our own customer database and our non-bank lending product range of ten funders and over 100 products,” Hansen Liu said.
From there, it gets brought into the main engine room that consists of two parts: a product engine and a credit engine.
The product engine defines the product criteria that is automatically updated, while the credit engine establishes rules and scoring to ensure it models risk accurately and in an understandable way.
“This enables us to match the right product to the broker's needs,” Hansen Liu said. “So, on one hand, brokers gain a deeper understanding of their customers through our platform, beyond what they can collect manually.”
“Simultaneously, our engine recommends better-suited products to brokers as potential solutions. Brokers can then use this information to find the best solutions for their customers.”
It’s all tied together by artificial intelligence, which helps refine the system that validates fact-find information, processes thousands of applications instantly and can give instant approval.
Rest assured, FINSERV has all the usual perks of a modern platform.
“We have OCR. You can scan your documents and check ID in five seconds. But everyone can do that right?” said Darren Liu.
And while FINSTREET estimates an average of 5 to 10 hours per loan saving time and money for brokers, Hansen Liu said the true motivation behind the platform lay in the opportunities it could provide for brokers.
Hansen Liu said the problem FINSERV that solved is that within the current economy, brokers faced increasingly difficult cases.
“There's so many honest people, good customers, that don’t get opportunities because the bank says I don’t know you. I don’t understand the risk,” Liu said.
“For brokers, the risk isn’t advertised either, so it’s hard to find solutions even in the non-bank space. But we have the data and we have the model that understands this unconventional risk better. Therefore, so we can link them with the right products.”
For example, a migrant may be asset rich, but they face challenges because they haven't established themselves in Australia.
“Major banks may hesitate to lend them money, but that doesn't necessarily mean they are high-risk individuals,” Darren Liu said.
Small businesses often face similar problems particularly in the current economy where interest rates have posed new challenges.
“They may engage with various loan products like invoice financing, but they remain trapped in debt. Traditional lenders may decline their loan requests based on their criteria, assuming they are too risky,” Liu said.
“However, our approach involves a more nuanced understanding of risk, allowing us to match them with the most suitable non-bank products. In essence, we help them transform their financial situation for the better.”
Another feature of FINSERV is the breadth of risk it calculates. Hansen said platforms such as TikTok, YouTube, and e-commerce provided substantial opportunities for individuals to generate significant income.
However, Hansen said traditional lenders had yet to recognise this income stream, and they lacked the infrastructure to support these businesses in the long run.
“Many people are making money from side jobs, online streaming, gaming, and creating digital content, often operating internationally from a single location,” Hansen Liu said.
“Traditional lenders don't understand these risks, and normal brokers struggle to handle them. Using our platform, we can calculate these risks and offer solutions. This sets us apart. We quantify risks and find suitable scenarios.”
Hansen Liu said the platform also factored in new risks such as climate change.
“Some Australian properties are vulnerable to climate change, which people often overlook. Digitisation also introduces new risks, like cyberattacks, which can impact revenue. This is why we are investing in addressing these risks and preparing for the future,” Hansen Liu said.
“We leverage calculators and analyse big data from platforms like YouTube, Google, TikTok, and Amazon, making the risks more transparent. Ultimately, the key lies in how we model these risks and truly comprehend the intricacies of these businesses to assist them in their growth journey."
