Much of the talk in fintech’s early years revolves around the unbundling of services, whether that be small business loans, student loans or real estate. Technology made it possible for startups to deep dive into a sliver of that business and make money doing it.
Now that fintech’s merits are clear, some companies are providing value in going the other way, by developing technology that makes it possible to bundle multiple services under one platform while also offering an efficient and automated customer experience. Vince Passione describes that process as platformification.
Mr. Passione is the founder and CEO of LendKey, a company which provides a turnkey platform allowing lenders to quickly launch online lending programs. That platform has deployed more than $1 billion in capital to borrowers so far.
While some technology providers act as a landlord in a sense by providing the technology, collecting the fees and leaving other details to the tenant, LendKey is more of a roommate, Mr. Passione explained. They chip in by providing access to many of the components of a successful lending program, including identity verification and electronic signatures.
Multiple unique service providers exist for most of those services, but the lender wants that software as part of their product. So Mr. Passione spends much time identifying service partners he can trust, while assuring those partners they can trust him. If partner companies provide the same level of disclosure and display committed leadership to the highest levels, that’s a good start.
“I put together the platform so I have control over it,” Mr. Passione said.
Now that the fintech industry is maturing it is a good time to put together a comprehensive platform like LendKey’s, Mr. Passione explained.
“When onboarding APIs the most popular ones have been battle tested and any issues have been identified before. When two partners come together it’s who’s writing five lines of code.”
But it is not as simple as creating a program and sitting back, Mr. Passione said. LendKey actively tests their software and issues new releases every week. Then there’s the process of keeping current with the new features of each different mobile device to ensure you are providing those mobile users with a seamless experience.
While technology is continually improving, there are still areas where it can improve, Mr. Passione said.
“The biggest challenge is are you who you say you are. We can always get better from a security customer experience.
“The consumer wants to open their device, put their thumb on it and have it know it’s them. They don’t want questions.”