London start-up, Savvy Loans, uses Mambu’s platform to reach underserved individuals and small businesses
Mambu has today announced that its cloud banking technology is powering Savvy Loans’ new lending program for individuals and small businesses. Savvy Loans Ltd., a new entrant into the U.K. consumer credit market, chose Mambu’s cloud-based platform for its fast time-to-market, front-to-back technical integration and the flexibility and scalability it provides to support future business growth.
By choosing Mambu, Savvy Loans quickly launched a fully customizable online offering with low upfront capital expenditure and accelerated time-to-market from months to weeks. The Mambu platform was created to help financial institutions like Savvy Loans extend capital to individuals and small businesses. Mambu’s agile cloud platform provides a fast and flexible way for Savvy Loans to originate loans from its website to its core platform and capture data all in one spot. Its open API allows Savvy Loans to conduct credit assessments on payments and collections through integrations with Call Credit and Lend Protect systems. This allows the company to streamline data management and make a credit decision within 24 hours, which would not be possible at a comparable price point with traditional core banking platforms.
“Savvy Loans provides an alternative to high-interest, pay-day lending in a secure way,” said Alexander Chagoubatov, Managing Director at Savvy Loans Products Ltd. “Mambu enabled us to take our offering to market quickly with low capital expenditure and to provide a better service to our customers through quick turn-around on the loan decisioning process. In turn this allows us to support a higher volume of tailored loans at lower interest rates and with longer payment terms.”
“New FCA regulations and interest rate caps mean existing and traditional payday lenders will be challenged in their business models, but new providers like Savvy Loans have an opportunity to work within the new frameworks and fill in the market gaps. New entrants into the lending space have an opportunity to reach underserved customers, become digital disrupters and accelerate time to market through the use of innovative technology,” said Eugene Danilkis, co-founder and chief executive at Mambu. “Savvy Loans is the first online, secured lending offering going to market in the U.K., which was made possible by the flexibility, agility and ease of use of the Mambu platform. We’re excited to help them launch and grow their business.”
Savvy Loans entered the U.K. consumer credit market to provide affordable and responsible loans tailored to its customers’ individual circumstances. Using the Mambu platform, Savvy Loans will offer short-term loans from £400 to £1,000 over 3 to 12 months, and Guarantor loans from £1,000 to £7,500 over 12 to 60 months to individuals and self-employed small businesses. Its £1000 loan for 12 months has an APR of 161% versus more than 5000% from local competitors, an aggressive and competitive interest rate made possible by the way in which Savvy Loans has set up its entire operations to be lean, streamlined and automated, by leveraging cloud technology including Mambu. The goal is to increase consumer lending for purchases such as second charge and merchant loans and disburse them to thousands of individuals and business by drawing on the more than 60 years of industry expertise that Savvy Loans delivers through the power of the Mambu platform.