News Article

IT & Internet

Multi-channel customers drive demand for online credit agreements

By CreditMan Thursday, March 7, 2013

Nostrum Group, a specialist provider of IT solutions and outsourcing services to the finance industry, has today announced that its platform has processed one million electronically signed loans. Whilst the most prolific use of eSignatures has traditionally been for loans originating via the internet, Nostrum has witnessed an increasing take-up in both the retail and motor finance environments over the last twelve months as consumers demand instant access to credit and services.

Nostrum has been offering eSignatures and digital signatures, where a customer provides their signature using their finger or a stylus, since 2009 but has witnessed a dramatic increase in the last year as the technology becomes more mainstream and consumer awareness increases. Today’s multi-channel customers are quickly moving online and as a result there has been a sharp rise in the number of businesses and consumers that want the ability to make online applications for services, receive instant decisions on acceptance, enter into electronic contracts and gain immediate access to credit.

The growth in eSignatures has also required lenders to place more emphasis on Know Your Customer (KYC) checks that collect and analyse extensive identity information and name-matching whilst taking into account the customer’s risk profile and previous transactional behaviour. The KYC checks ensure that lenders can be sure they have contracted safely with the correct customer and that no parties are being defrauded.

Richard Carter, Chief Executive Officer at Nostrum, comments on the rise in eSignatures: “Electronic signatures have provided online lenders with significant performance benefits for a number of years now and their increasing adoption in face-to-face environments, such as retail stores and motor dealers, provides businesses and supporting finance functions with the ability to quickly close more deals without the need for document printing and storage, which may not be available in all outlets. As the internet becomes part of every day life, eSignatures help businesses move towards a no paper environment and comply with green business initiatives, promote efficiency and reduce administration.”

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