Credit: We live in the XaaS era: an acronym that refers to the term everything as a service, in which the X of the question can be replaced by a multitude of products and services — the sky is the limit. I have already covered other modalities of ‘everything as a service’, with solid examples of FaaS and BaaS (fintech and banking as solutions, respectively). This time, I present another market trend: Credit as a Service (CaaS), which has opened the doors to a more personalized credit concession, according to the pains of each client.
The flow is as follows: fintechs offer complete CaaS platforms to financial institutions so that they can provide services and credit products customized to the customer’s taste and needs, in a digital, secure and automated way.
This is a production chain where everyone wins: the startup sells its solutions, those who lend can streamline processes (and optimize their customer base) and the end consumer gains access to better loan lines.
The Programming Interface Application (APIs) guarantee infrastructure, not only operational, but also regulatory, with guarantees such as fraud and corruption prevention, risk analysis and money laundering. All as required by the Know Your Client (KYC) best practices.
With the improvement and speed of credit analysis, any company can offer credit lines to its base. Recently, Magazine Luiza launched Magaluplay, with rental fee-free card machines that allow the popular pay-by-approach. With attractive prices, the offer aims to cover both micro-entrepreneurs and larger companies. Previously, Magalu had already launched a digital PJ account, with resources from a Credit Right Fund (FIDC) and with lines of credit aimed at retailers.
Credit is not for amateurs
When we talk about credit, it’s not all flowers. If default is already a recurrent risk, the pandemic has contributed to the rise in Brazilians’ indebtedness. Magalu himself had a difficult year with the fall of his shares on the stock market, after an excellent 2020 for marketplaces. Even so, specialists are betting on the consolidation of e-commerce and on the potential of the magazine, which is well established in physical retail.