Learn about our newest lending product, its benefits for companies and consumers, and how the technology works
🕐 | 2 minute read
VP of Product, Lending
Ravi leads Synctera's offerings of Secured and Unsecured lending products
This week we announced the launch of our new product that allows companies to offer lending to their customers: Synctera Line of Credit.
With Synctera Line of Credit, companies that build FinTech apps and embedded banking services with us can now offer lending alongside FDIC-insured bank accounts, personalized debit cards, various payment methods, and more.
Read on for more details about 1) how Synctera Line of Credit works and 2) how you can get started building the future of lending.
Overview of lines of credit
A quick summary: A line of credit (LOC) is a flexible way for retail and business customers alike to borrow and utilize a predetermined amount of funds. Customers can replenish the line of credit with repayments, and then borrow again up to the predetermined credit limit, avoiding the hassle of reapplying for a loan multiple times.
Benefits of credit lines: Offering lines of credit can help you create stronger relationships with your customers, complement existing product offerings, and unlock new opportunities for revenue growth.
Need more ideas about building lines of credit? Last month, we shared an ultimate guide on lines of credit to give you the rundown on:
What a line of credit is and how it can help consumers and businesses
Ideas for embedding them into your product offerings
How you can generate revenue from lines of credit
The various paths to building a line of credit product
Synctera Line of Credit - product details
Synctera Line of Credit is a complete solution with all the components you need to offer lines of credit to your customers delivered via a set of ready-to-use application programming interfaces (APIs), a web-based console for building and managing your product, compliance and operational guidance and support, and a partnership with a sponsor bank that is right for you.
<div class="rt-btn-wrap"><a href="https://dev.synctera.com/docs/line-of-credit-guide" class="button yellow w-button">Explore the Line of Credit API documentation</a></div>
In combination, these components empower companies to launch and support unsecured lines of credit for retail or business customers.
Synctera Line of Credit allows you to provide retail or business customers with:
Convenient and flexible on-demand borrowing via an unsecured line of credit
A seamless application process in your user interface via your branded app or website
Optionality to transact via a linked debit card or ACH transfer
Real-time insights into account balances, available credit, transactions, and more
Other important details: This product is offered alongside Synctera Ledger and Synctera KYC/KYB. Your bank partner (one you are paired with through Synctera) serves as the lender of record and processes money movement and ACH transfers. Your bank partner may also choose to hold a portion of the utilized LOCs on its books to comply with state and federal laws.
Building the future of lending is easy with Synctera
You’ll drive the program definition, lending criteria, marketing, user experiences, and customer relationships for any product you build and launch with Synctera. Fortunately, we make it easy for you to incorporate our APIs while building and then manage your operations post-launch.
Our end-to-end platform and Console give you complete control over your line of credit program, ongoing operations, and compliance:
Regulatory compliance: Post launch, use Synctera Cases to expedite your bank partner’s review and approval of your market communications, underwriting models, disclosures, and other “fine prints"
Program configuration: Use Synctera APIs to set program and account configurations like interest rates, credit limits, payment terms. You can also use our APIs to create or update customer and account details
User experiences: Create a delightful and intuitive UI/UX, leveraging Synctera APIs to build in app or display experiences for your users to see account details, initiate drawdowns, schedule payments, and more. We also have webhooks to issue account alerts for new statements, updated account status, etc
Customer support: Use the Synctera Console to review product analytics and details about customers, accounts, and transactions
Synctera also handles critical banking elements in the background:
KYC/KYB: Synctera performs Know Your Customer/Know Your Business (KYC/KYB) checks to determine if customers who you want to use your LOC product are legitimate individuals/entities and not fraudsters or sanctioned individuals
Money movement: Synctera manages money movement among your customer accounts, external accounts, your business banking account, and more
Servicing: Synctera processes payments on your behalf; calculate interest charges, minimum payment amount, payment due dates, and more
Disputes: Use Synctera Ground Control to track and handle all billing disputes in compliance with regulatory obligations - free for the first six months
By combining Synctera Line of Credit with your own product vision and business plan, you can create a lending product that can significantly improve your customers’ financial lives - and your bottom line.
If you’re a developer, you can start exploring the Synctera Lines of Credit API guide. Have more questions? Get in touch with me and the team here – we’re happy to provide more details and discuss what you can build with Synctera!
<div class="rt-btn-wrap"><a href="https://synctera.com/contact-us" class="button yellow w-button">Have questions? We can help</a></div>
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Synctera and featured clients are financial technology companies and not a bank. Banking services are provided by Synctera's partner banks who are Member FDIC. Mastercard® Debit Cards are issued by Synctera's partner banks pursuant to a license from Mastercard® and may be used everywhere Mastercard® debit cards are accepted.
Synctera Canada is a registered Money Service Business with FINTRAC. Synctera Canada is not a financial institution. Banking services are provided by Synctera Canada’s partner banks who are CDIC members. Mastercard® Prepaid Cards are issued by Synctera’s partner banks pursuant to a license from Mastercard® and may be used everywhere Mastercard® is accepted.