American fintech company Scratch has introduced a loan servicing platform to sync the financial interests of borrowers and lenders.
The new Scratch loan servicing platform provides the borrower with a simple web application to manage and repay the loans.
The platform will also provide the lenders with real-time portfolio insights of the loans.
It is also expected to automate the back-office processes associated with loan management enabling Scratch to allocate more time and resources to the needs of the borrowers giving borrowers the attention and guidance they deserve.
In the US, 8 out of 10 people carry some kind of debt with a loan servicer for themselves. These loan servicers are companies that manage all communication with the borrower after the disbursement of the loan amount.
Scratch co-founder and CEO Sameh Elamawy said: “This is why we started Scratch. We knew it couldn’t be just some app tacked onto the existing infrastructure or ecosystem.
“Real change would have to be more foundational. Rather than trying to build a better loan servicer, we set out to replace the loan servicer altogether with a platform for debt that empowers borrowers and brings them closer to their lenders.”
Developed over the last three years, the Scratch loan servicing platform can work with all loan originators and investors irrespective of their sizes.
The platform is capable of carrying out loan accounting, treasury management and reporting without human intervention.
It is also said to adapt to the lenders’ new products and services.