Business Value of Open Source for Financial Services Firms

| May 25, 2018

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The financial technology industry is moving into a new era of engagement with open source technologies and communities. Having used open source components for decades to build their products and run their datacenters, financial services and fintech firms are increasingly realizing that active participation in open source development is necessary to fully realize their goals to spur innovation, reduce development costs, and attract top talent. This paper outlines how.

Spotlight

Ditech Financial LLC

At ditech, we have one of the industry’s most well-known brands. And while we’re committed to providing our customers with an exceptional experience, we believe that our employees deserve a great work environment, where they can grow, learn and achieve their professional dreams. Professional, friendly and encouraging this is our house! We are a fast-paced, fun place to work, learn and develop your skills. You’ll be creating a promising career for yourself and have the opportunity to earn a good living while helping our customers achieve an important life goal, homeownership. We speak home loans. Whether you are working in our lending business, our servicing operations or one of our support areas, we want all of our employees to be knowleable of every service we provide.

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Machine Learning in Finance – Present and Future Applications

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What's So Special About Embedded B2B Finance?

Article | March 4, 2020

The rise of buy-now-pay-later in the consumer world provides a powerful example of what embedded finance at the point of need can do for brands. Consumer debt ethics aside, B2C buy-now-pay-later providers can proudly point to the fact that implementing a BNPL solution can increase basket sizes for retailers by 20-30%. The concept, although around for years in various forms, has now been delightfully served as an option during the customer’s checkout process and the marketing has been simplified and on point. Even as merchants must pay for the privilege of offering BNPL (keeping it interest free for customers) upwards of 4-6% per transaction, the benefits have been too good to resist. 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By introducing business finance, suppliers can get paid upfront and those pesky risks evaporate. When used effectively in a negotiation, financing offers can also allow suppliers to remove expected buyer discounts. Total order values and loyalty increase (as in the consumer world) and accessible finance even helps a buyer’s businesses become more successful — resulting in increased volumes of purchasing. Still, referral programmes of this nature have their problems. Even with same day B2B funding available, finance applications can hold up the buying process. This means suppliers who are keen to leverage the buyers peak interest, antagonising don’t close sales as quickly as they could and run the risk of the of the application declining or extra customer frustration and fatigue. While the benefits for introducing finance in to the sales process still outweigh the negatives, more improvement in the experience can be achieved. Enter Fintech-as-a-Service. Embedded pre-approvals Imagine a situation as a B2B supplier or merchant where you can provide a pre-approved finance offer straight to eligible businesses through your own CRM. This level of proactivity provides you with a powerful tool in drawing in loaded sale opportunities from customers who are primed and ready to transact. The advantage over your competition is significant as your customers already know they can painlessly purchase from you once they’re ready for more stock. A new revenue stream also opens for your business as your FaaS provider hands you commission for each loan a buyer takes. This example highlights the power of pre-approving customers in a proactive capacity. For this level of FaaS to work a customer permission gate is required, either as part of a customer onboarding/sign-up process or through invitation. 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This later point can already be seen in the growing gulf of funding accessibility between online and manual powered businesses. For example an eCommerce buyer, generating rich volumes of data through online sales and excessive B2B Software-as-a-Service (SaaS) use has the perfect data points that can be integrated in to support lending applications. In contrast, a blue collar business, with a limited online presence and who only drops a shoe box full of receipts to their accountant every 90 days, will find it more difficult to provide the data required for quick decisioning. The new normal Embedded B2B finance is here to stay and serious FaaS providers are emerging. More and more suppliers and merchants will be leveraging the power of this new technology trend to create a more successful, loyal and satisfied buyer. Through proactive pre-approvals, B2B sales teams can be armed with more empowered conversations and unique advantages over the competition. 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Spotlight

Ditech Financial LLC

At ditech, we have one of the industry’s most well-known brands. And while we’re committed to providing our customers with an exceptional experience, we believe that our employees deserve a great work environment, where they can grow, learn and achieve their professional dreams. Professional, friendly and encouraging this is our house! We are a fast-paced, fun place to work, learn and develop your skills. You’ll be creating a promising career for yourself and have the opportunity to earn a good living while helping our customers achieve an important life goal, homeownership. We speak home loans. Whether you are working in our lending business, our servicing operations or one of our support areas, we want all of our employees to be knowleable of every service we provide.

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