Lending: Verifications in seconds to offer loans with guarantees

IT significantly simplifies business operations. As a result, financial services offer performance improvements that streamline the verification process for collateralized lending applications and provide personalized services.

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Why Collateralized Lending Verification is Important


Within the financial sphere, the development of information technology and telecommunications makes it possible to improve the management processes associated with lending and credit services. This means a reduction in costs and prices thanks to the automation of operations, but also makes it possible to reduce the risk associated with the activity.

Indeed, financial institutions, banks and lenders now have at their disposal the wealth of data that users produce with their online activity – the so-called digital banking, third-party providers and the PDS2 Directive. Thus, they can analyze user profiles directly and produce collateralized loan verifications in a matter of seconds.

So-called financial scoring consists of assessing the user’s characteristics and ability to pay, with the aim of reducing the probability of non-payment without neglecting the commercial performance of transactions.

Automated verification systems for secured lending are today essential tools to prevail in an increasingly competitive market. The ability to evaluate and issue loans in a reduced timeframe is a competitive advantage for banks.

Client status checks in lending


In simple terms, verification is a crucial process that has been around as long as traditional credit and lending services have existed. It involves, in essence, determining a client’s characteristics and knowing his or her ability to repay a loan.

Strictly speaking, today’s client financial status verification processes serve the same purpose. However, they employ different systems for analyzing the data that users produce with their online financial activity. This includes payments, income, investment and any other financial information.

According to the report The situation of Spanish banks in the new macrofinancial environment  by the Bank of Spain, banks’ balance sheets are progressing despite the economic uncertainty: doubtful loans fell by 12.4% during the second half of 2022.

The report also states that loans under special surveillance (doubtful) decreased by almost 8% by mid-June 2022. The report does not state this directly, but the information coincides with the consolidation of digital verification solutions and credit analysis systems.

Security for both users and lenders


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Despite the proliferation of these types of loan and credit verification systems, users still have some misgivings about their use. This is because over the past decade there have been major cases where database systems have been used for illegitimate purposes.

However, automated financial scoring and verification systems are more secure than any of the previous options. 

There are redundancies and constant improvements in confidentiality and security. How do they achieve this? Lenders and financial institutions employ encryption protocols that reduce any kind of data theft or leakage.

Thanks to the establishment of the PSD2 Payment Services Directive, payment systems and service providers now have a regulatory framework for the use of customers’ banking and financial data. This makes it possible to share data legitimately in an approved and regulated system that favors the user.


Use of artificial intelligence in lending


The collection and availability of customer financial information is essential for agile and efficient lending verification. In fact, all online activities require user data to provide a better service; from commercial and investment operations to management, training, work and streaming systems.

Precisely, big data techniques, open banking and artificial intelligence algorithmic systems are equally important to process a massive amount of data and improve the performance of operations. In particular, the ability to produce information from data is the real value behind this technology.

It is no longer just a matter of reducing risk and accurately identifying customer profiles, but artificial intelligence is needed to streamline processes and offer personalized services. As a result, companies can adapt to trends and respond in real time to market conditions.

In short, algorithmic systems that emulate artificial intelligence are a substantial improvement in risk management. Their use in the verification process is what makes it possible to offer collateralized loans in a few seconds, which in turn makes it possible to develop a more efficient and accurate service.


Thanks to artificial intelligence algorithmic systems, the verification of collateralized lending transactions now takes place in a matter of seconds. This means a significant improvement in the performance of lending operations and greater access to quality financial services for users.


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