Do you run a lending business but still don’t know why it should be integrated with API? Then this article is worth your reading. The article will explore all the facts you must know about API and how it works.
API is nothing but an Application Programming Interface that is a protocol to run your lending software functionally. It allows the lender to figure out all the needed information about the consumers that ensures the sanction of the loan amount. To know more about API, look at this website for lending software solutions.
API is there to ensure safe lending as due to the lockdown period something unexpected happens with the lending procedure nowadays. It is easy for the lender to collect all the information about the borrower regarding the purpose of the loan request from genuine sources. Therefore the lender carries out the smooth execution of the digital lending process securely by accepting the request for a loan.
How is the API associated with a smooth lending process?
The loan processing through API is 100% safe as it never stores any data within it to allow something unfair. Besides, API provides benefits to the lenders as mentioned below:
- It helps lenders to intensely analyze the borrower’s profile.
- API presents data from third-party sources including the Government of India.
- It allows lenders to minimize their effort of loan processing.
- API saves the time of lenders.
- API ensures error-free loan processing supporting the greater chance of business to the lenders.
How does API assist lending sectors to get potential borrowers?
Borrowers should adopt an API-driven structure for a variety of reasons. They are as follows
- Regulations in the industry.
- New entrants and fintech businesses are posing a threat.
- Increasingly, it is necessary to go digital.
- Creating opportunities for additional revenue streams.
How do APIs work in loan processing?
It needs not to mention that there are APIs of different categories assisting in different manners. You will become amazed to know that this AI serves the work that needs to be done manually before. Let’s come to know how the loan originating process has become easy in association with API.
Optical Character Recognition (OCR)
OCR stands for Optical Character Recognition. It is common to practice transforming text from photos to machine-readable text. For example, OCR APIs are frequently used to read a scanned copy of a document, and the data extracted from the image is frequently recycled for use by the borrower.
To operate the process it requires the input of an image of ID proof scanned finely. It delivers all the details including the name of the borrower, father’s or husband’s name, date of birth, face extraction, and other information.
The best part of the OCR technique is that it is less time-saving and without error.
API also performs the E-sign transaction when the loan becomes sanctioned. The several categories of API used in all these purposes are Face match API, Face Crop API, Face liveness, New match API, etc. To learn more about how an API system works look at this website for lending software solutions.