Crediton:
Innovative business is changing the financial services sector

by Mandy Trilck
Fintech: A term originally referring to back-end technology used in traditional banking. Now, it’s associated with innovative business ideas that are changing the financial services sector.

Overview

Crediton is a fintech startup located in Uruguay. Their goal was to offer microloans to customers through web and mobile platforms. They wanted their software to run most of their business operations, creating cost savings that could be passed on to consumers in the form of attractive loan rates.

When Crediton approached us they knew what they wanted to achieve but didn’t have a preference for what technology stack to use. Thus, we were tasked with selecting the technology stack that was most suitable for the project. We considered the need for automation, scalability and, importantly, development speed—Crediton wanted a minimal version of the product to go live as soon as possible so that they could begin finding their first clients. We needed to develop a version of the software that could be used by the company right away, but could grow in complexity and efficiency over time.

Solution

We chose Ruby on Rails (RoR) as the base of our technology stack, largely for its development speed and appropriateness for this style of fintech project. In the RoR framework, open-source libraries known as “gems” provide ready-made code, significantly improving our TTM (Time to Market). Certain RoR libraries make database creation and maintenance easy, an important factor in Crediton’s business model.

Additionally, the wealth of documentation and materials available for Ruby on Rails online (through GitHub, for example) make it easy to find solutions when challenges arise.

Notable accomplishments

After we delivered a usable first version of the application, we began several key integrations for Crediton's operations:

1. Third-party servicer functionality

2. Automated credit checks

3. SMS reminders

1. Red Pagos is a payment network widely utilized in Uruguay. People use the service to pay bills as well as to receive anything from wire transfers to money from their retirement funds. We integrated with the Red Pagos system, so that clients would be able to go to a Red Pagos location to receive their loan disbursements and to make payments.

2. Initially, Crediton’s employees were doing most of the work to perform credit checks. They wanted to make the process less time-consuming, so we integrated the software with the Central Bank of Uruguay’s credit reporting system.

3. In order to help Crediton’s customers stay current with their loan payments, we established a system to automatically generate text message reminders.

Summary

We were able to quickly bring Crediton’s website live so that they could find their first loan clients. As their business has grown, we have continued to work with them to provide increased functionality for their software, further automating their operations. They have continued to invest in their technology, seeing the clear cost-savings benefit of efficient software.

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