Multi-lender stack: How FinBox propels product growth through lender integrations

Aparna Chandrashekar   /    Content Specialist    /    2022-11-10


Speed and flexibility are antagonistic when building fintech products. India houses over  7000 FinTech companies - that’s a lot of competition, especially in a sector that prides itself on its agility. In the fast-growing FinTech industry, how do you ensure speed and flexibility, with differentiated products and services? 

We’re in the business of lending infrastructure, and one of the key considerations for any FinTech is to constantly weigh the pros and cons of single vs multi-lender partnerships. The impact of lending structures, while not immediately apparent to customers, will significantly affect their chances of financing acceptance, making it a crucial decision for FinTechs that want to grow. 

Consider this -If you’re a fintech that’s integrated with a single lender, who only lends to prime customers, it can lead to two things - 

  1. Plummeting conversions -  97% of online banking applications that are started are abandoned - effectively leaving the conversion rate at less than 3%  

  2. Negative revenues from a limited pool of borrowers 

The Reserve Bank of India’s financial stability report shows that subprime borrowers made up one-third of the borrowers in public sector banks, 16% in private banks and 28% in NBFCs.  Near prime customers made up 56% of borrowers. That’s a lot of rejection for customers and FinTechs! 

The best option then for FinTechs that want to lend more, and lend confidently, is a multi-lender arrangement. But there’s another catch here - multi-lender integrations. 

Lenders come with their own Core Banking System (CBS) APIs - used to perform customer verification, fund transfer to the customer account, customer ID creation in their system, loan account creation etc. Integrating with these APIs comes with its own set of challenges - 

  1. Security concerns - Lenders may not be comfortable with calling their CBS APIs from an external cloud due to security reasons. 

  2. Need for a business rule engine - Lenders don’t allow third parties to trigger API calls using data that are not already approved by their central team. This creates the need for a business rule engine. 

  3. Data safety - Some lenders may prefer managing all their databases within the bank’s network 

  4. Data payload security - Some lenders may ask for an additional layer of encryption on their API calls 

  5. Network safety measurements - It can be challenging to set up specific safety measurements like whitelisting, site-to-site VPN tunnelling etc

  6. Some lenders have a Loan Origination System (LOS) in place, and some don’t and need a direct connection to Loan Management Systems or CBS. 

These are just some of the basic challenges. Integrating with lenders is a lengthy process - both parties have to adhere to regulatory requirements, which further complicates the process. 

Any fintech looking to integrate with a bank/NBFC needs to put aside a team and about 6-12 months for it to come to fruition. So even if you have the right intentions to build new products, integrations to fund these products are resource and time intensive. 


This is where we can help. The FinBox co–lending + multi-lender stack eases this situation by enabling access to a lender marketplace where lenders compete rather than the FinTech competing for their attention.  

The platform brings together dozens of lenders across different products, serving various geographies and customer profiles - on a single platform. As a result, a distributor FinTech or an anchor platform can get access to multiple lenders with just one integration rather than having to individually integrate each lender and build workflows accordingly. 

To think about this in action, let’s consider a multi-lender use case - think of how water flows in a waterfall. Similarly, with FinBox’s multi-lender stack, an application is checked against the prime lender for approval; if declined, the application is then shared with the next lender; if declined again, it is moved down to the next lender for approval and so on. The entire process happens on the merchant app without any redirects and takes only seconds. 

With FinBox Multi-lender stack Vs Without 

New product growth

For a long time, the point-of-sale marketplace was dominated by single-lender, single-product credit solutions. The downside to that is evident - only customers with great credit scores, the prime or super prime customers, qualify for these products. That doesn’t do much for your revenue or Net Promoter Score (NPS). Thanks to solutions like FinBox’s Multi-lender stack, fintechs can now get ready access to multiple lenders to create multiple products that are tailored to allow every customer on your platform to qualify for more offers from various lenders and thus bringing down the cost of funds for the FinTech. 

New products with FinBox can then look like this - 

  1. Multiple product offerings:

  2. BNPL stack with a fully managed end-to-end lending journey

  3. Custom term loan products for individuals or businesses 

  4. Invoice financing products from within your accounting app

  5. Sachet loans

  6. Bullet loans

  7. Instant loans 

  8. Credit lines 

  9. Overdrafts

  10. Flexible Payment options: 

  11. Easy monthly/daily payments

  12. Low-interest instalment loans

  13. Deferred or 0% interest rate revolving lines of credit

  14. Accommodating term lengths

  15. Cater to multiple personas: Identifying and creating persons is crucial to any business. Bank project teams focus on potential users during the design and development of new journeys. A multi-lender arrangement ensures that persons across categories - credit score, age, pin code, job title, salary etc - are matched with a suitable lender. 

Partner with FinBox

FinBox has a network of banks, NBFCs and alternative lenders to provide a competitive landscape for fintech to cater to consumers across the credit spectrum. Why choose one lender with one product when you get a financing solution with multiple products all on one platform? FinBox understands that there’s no one-size- fits all when it comes to providing financing solutions. When you have access to capital from multiple lenders with business rules that cover a huge borrower pool, there is an increased potential to create more product variations and in turn, growth. 

The FinBox multi-lender stack flips the antagonistic speed & flexibility narrative on its head - you can go to market in just seven days! Our robust infrastructure deepens product customisation, faster scaling and rapid prototyping which otherwise remain locked in legacy systems. Diverse risk profiles of lenders mean higher approvals for your customers. Unlock the power of the multi-lender stack, and propel new product growth! 

Get in touch with us today to learn more!