Lending as a Service (LaaS): Transforming the Future of the Economy in LATAM

In the digital age, over 270 million adults are unbanked, and SMEs face loan rejection rates exceeding 60%. Technological innovations are reshaping the financial industry, facilitating more inclusive access to financial services. In this context, AltScore emerges as a fintech company that offers Lending as a Service (LaaS), assisting businesses in digitizing their entire credit process — from onboarding to automated renewals. Thanks to AltScore, well-known companies like Coca-Cola and Grupo Arcor have experienced a sales increase of up to 32%.

What is Lending as a Service (LaaS)?

LaaS allows fintechs like AltScore to directly connect businesses with credit applicants. This model eliminates banking intermediaries and brings transparency to the process, surpassing the traditional credit model.

How AltScore’s LaaS works

AltScore digitizes all credit processes using APIs that employ alternative data and cutting-edge technology. Applicants manage their credit online, and AltScore evaluates the information to determine their eligibility. The modules include:

• Onboarding — digitally gathers information and documentation, following KYC and KYB processes.
• Underwriting — conducts banking analysis and provides robust scoring, leveraging alternative data.
• Loan Disbursement — optimizes the disbursement process, eliminating delays.
• Loan Management — actively monitors the credit portfolio and its details.
• Smart Collections and Repayments — automates and digitizes repayment and collection processes.
• Renovation and Behavior — retains customers through renewals and adjustable terms.
• Capital as a Service — offers credit without requiring internal resources, leveraging external capital.

Benefits of AltScore’s LaaS

• Increase in sales — a revenue increase of up to 30% has been recorded for AltScore clients.
• Agile approvals — credit decisions can be made in just 30 seconds, increasing approval rates by up to 32%.
• Reduction in default — AltScore has managed to reduce default rates by up to 21%.

With AltScore, we found a partner to build products. For Kalto, it’s like adding to our team experts in credit operations. — Joel, CPO and Cofounder at Kalto

Conclusion

LaaS has the potential to revolutionize the financial industry. AltScore facilitates loan access, empowering individuals and SMEs in LATAM.