Credit is an important component of every economy, but not every market has the same level of access to credit. Lime understands that and has moved to fill gaps in the credit offering from traditional banks by using its on-line delivery platform and its proprietary scoring algorithms to make credit available where it is particularly needed and can make a significant impact in people’s financial lives.
Single disbursement / single repayment for terms up to 30 days and amounts up to 400 Euro (depending on the country)
Applicants are algorithmically scored and receive their loan in minutes through their chosen delivery channel. Once approved, clients self-manage disbursement, delivery channel, repayment, and changes to the loan term through their on-line account.
Single Disbursement / multiple repayment dates for terms up to 6 months and amounts up to 700 Euro (depending on the country)
Typically only offered to Lime’s returning clients, Lime’s Installment Loans are intended to assist with major expenses or significant purchases, and come with all of the self-managed flexibility and convenience of our Immediate Cash Loans but are available at lower rates and with longer repayment terms. Clients must have a bank account or a debit card to qualify.
Multiple disbursement / multiple repayment dates for varying terms and amounts up to 500 Euro (depending on the country)
Likewise, only offered to Lime’s returning clients, Lime’s Revolving Credit products are intended to provide its clients with a constantly available cushion to help smooth out and stabilize their cash flows, and come with all of the self-managed flexibility and convenience of our other products but are available entirely on demand. Once approved, clients decide themselves when, if, and in what amount they want to draw down their Revolving Credit line. Clients must have a bank account or a debit card to qualify, and Lime expects that this product will eventually evolve into a Lime-branded credit card.
Though Lime’s products are traditional financial services, the Group’s core is an on-line delivery platform capable of fully automated client acquisition, scoring, and loan issuance. Lime leverages its technology platform to provide convenience to its clients and to enhance lending decision accuracy. Compared with traditional brick and mortar financial services providers, the Lime platform brings benefits to clients and the company, alike:
More than just the obvious benefits of convenience and low overhead accruing from on-line availability and process automation, Lime’s algorithmic scoring process drives the business to everyone’s benefit. Even when an applicant is denied a loan, they have the option of keeping their application “active” and, if so, Lime’s algorithms continue to score the application as new data becomes available and then automatically notifies the applicant of a change of status of their application.
In some markets, a credit score is an available and reliable guide to creditworthiness, but that is generally not the case in developing economies where significant portions of the populace do not have multiple touch-points within the traditional banking system. Often, it is the norm that people have a bank account only for receiving their salary or government transfer payments, but do not regularly keep money in the account and continue to transact the majority of their financial dealings in cash.
However, even though these populations have not been embraced by the banking and financial services industry, they have been embraced by mobility and the internet. And as they participate in on-line communications, on-line shopping, and social media, they develop data points that can be stitched together to form a credit prediction. Often, their on-line lives tell us more about these people than their off-line banking lives tell the providers of traditional credit reports. Combining other data with our learned inferences, we are able to offer credit products to those people who normally wouldn’t consider and usually wouldn’t be accepted by traditional banks - all while achieving respectably low default rates.
But we’re not spying on people and indiscriminately collecting data. The Lime system only goes to work once someone makes an application and explicitly gives us their permission to collect their data.
|Examples of Types of Data involved in the Lime underwriting process|
|Personal Information||Static Data||Public Information||Commercially available Information||Inferences|
|Source: applicant himself enters this data||Source: browser and connection data||Source: on-line data and history||Source: Lime purchases access to specialty databases||Source: Lime’s self-learning credit scoring|
|Tax Id Number||Date / time of application||Social network associations||Criminal record||Generally, this is two questions asked a number of different ways:|
|Bank Account||IP address from which application is filled||Court records||Credit history||1. What factors does this applicant have in common with other applicants?|
|Marital Status||Elapsed time of filling the application||Black lists||Auto Insurance Records||2. What was the outcome of loans to those other applicants?|
Once it is broken out like this, it isn’t hard to see how seemingly unimportant data points can be used to build a highly representative – and relevant – picture.
But Lime’s technology doesn’t end with its scoring algorithms. We understand that our clients want to work with a solid and trustworthy platform. To that end, Lime is one of the few companies in its sector that has full compliance with the Payment Card Industry Digital Security Standard (PCI DSS) which incorporates physical access control, system-level security, and inspections / audit to ensure that clients’ personal information is kept private.