LAAP - Lending as a Partnership

LAAP provides a platform where Lender and Borrower connects to a whole array of service providers like Market advisors, Traders, SMEs etc to do lending as a business between lender and borrower.

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Inspiration

Look at an example of FSA loans in US, the delinquency rates are so high, last year it was about 19.4% of loans, which is 3% higher than the previous year... Increasing it year on year... Why it is so? does anyone get any benefit out of it? either the lender or borrower? Is this the only problem of the Borrower, who cannot repay the loan? Financial Institution does all checks, risk assessment and then giving out the loan Borrower runs the business with this financial aid, eventually business drops, as he may not have the primary support like he may not have the right market to sell, he may not know the technology advancements that he can apply in the business and so on...finally he fails and loan get to default and recovery... Both borrower and lender looses here... Lender runs into recovery processes, spending time and effort, litigation, write-offs and the other side borrower gets to bankruptcy, gets stuck in life...

What it does

LAAP • It is a new way of looking at the whole lending process, a paradigm shift • It is not just giving out money and leave the whole business/repayment burden on borrower • Lender is investing in Borrower's business, so it is a mutual responsibility to make this business successful • LaaP provides a platform where Lender and Borrower connects to a whole array of service providers who are the backbone of the business, Market advisors, Traders, SMEs etc... • The whole idea is, Lender, Borrower and these service providers connect each other to get this business a success and thus Lender gets its investment back with interest, Borrower gets to repay the loan(investment) seamlessly through business profit

How we built it

We have mainly 3 layers. Front-end which is a Web APP developed using Angular 6, A WEBAPI layer developed in .net and an ML/AI layer using Python Flask. The Angular Web app will be communicating with WEBAPI layer which in turn communicates with the ML/AI module and database to get the data to the Front-end. The user details are stored in SQL database. FFDC API is been called from the WEB API module to get the Loan status and the same will be sent to the Front-end.

Challenges we ran into

• Identifying Machine learning Model, Data set creation. • Selecting the use-case for the hackathon demo. • Identifying actual statistics on the FSA loans in US, the delinquency rates.

Accomplishments that we're proud of

• Avoid recovery overhead for Financial Institution • Lesser re-investing cycle • New revenue channel through partners • Increased customer satisfaction • Socio-economic development

What we learned

New techonologies including Machine learning, Artificial Intelligence, Consuming FFDC API, Bootstrap4

What's next for LAAP - Lending as a Partnership

Looking forward to work with Product & Innovation team of Finastra to take this idea into market and try with a pilot client.

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