Credit
Revolving credit
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Revolving credit allows customers to borrow money up to their credit limit
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There is no set payment term or plan, rather an open facility
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As the balance is paid down, that money becomes available again, net of interest and fees
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The customer pays interest monthly on the current balance owed
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Revolving lines of credit can be secured or unsecured
Instalment credit
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Installment credit gives borrowers a lump sum, and fixed, scheduled payments are made until the loan is paid in full
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Unlike revolving credit, repaid money is not available to borrow again
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Examples of installment loans include mortgages, auto loans, student loans, and personal loans
Microlending
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Microlending is a short-term loan that has a duration of between a couple days and multiple months
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The system can be configured with functionality covering affordability, eligibility, repayments, fees, and more
Buy now, Pay later
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Buy now, pay later allows customers to make a purchase and pay for it in installments at pre-defined future dates
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BNPL is appealing because there is often no interest and very limited approval requirements
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The platform supports including or excluding interest and manages customer and merchant payments
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Collection of instalments is enabled by integration with standing orders/debit order/ACH/CMS integration
Payroll lending
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Payroll lending allows employees to borrow against their future income
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Loans are usually repaid in a single payment on the borrower’s next payday
The system is easily configured to extend favorable terms and durations to staff
Earned wage access
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Earned wage access allows employees access to a portion of their earned wages before the end of their pay cycle.
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As the pay cycle progresses, earnings are made available on an incremental basis and made available through an EWA wallet
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This model helps prevent employees from entering into unethical loan agreements
Transaction
Wallets
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A store of value account with flexible configurations
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Transactions can flow both in and out
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There are many varieties and wallets are currency, points and token independent
Transaction account
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Transactions can flow both in and out
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Flow of funds can take place via many different mechanisms, eg: wire transfer, ACH transfers, ATM withdrawals, and debit cards
Overdraft facility
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A transactional account with the added addition of a configurable overdraft
Investment
Savings account
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Interest bearing mid term account used to hold funds
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The system is fully configurable around withdrawals, minimum balances, term, interest rate, and more
Term deposit
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Savings account with a minimum funding amount and balance
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These accounts often have longer terms and higher interest rates
Certificate of deposit
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Savings accounts with minimum fixed term deposits
Flexible fixed funding account
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Lump sum investment accounts, not suitable for daily transacting
Terms range from 3 – 60 months and interest rates are higher in exchange for non-withdrawal