AlphaLoan reminds potential borrowers to select the lender with care in consideration of credit complexity

TAIPEI, May 20, 2020 /PRNewswire/ -- AlphaLoan, the largest firm in Taiwan providing loan comparison services, published a report detailing the results of its analysis of the Loan Application Questionnaire that it had sent out to borrowers. The report demonstrated that the forecasts offered by AlphaLoan's website in terms of the availability of personal credit, interest rates and probability of obtaining approval for a loan had achieved a 94% accuracy. The report also revealed the findings from several other consumer surveys.

Bank credit data analysis

AlphaLoan supports consumers through a feedback program in response to the COVID-19 epidemic and in celebration of the firm's fourth anniversary

As part of the firm's efforts to respond to the COVID-19 epidemic and to celebrate its fourth anniversary, AlphaLoan launched a special borrower feedback program last month, providing qualified individuals with a shopping voucher worth of NT$ 2,000 (approx. US$ 67) on the condition that they complete a loan application with AlphaLoan and fill in the feedback questionnaire. The program helps generate over 200,000 visits to the website within one month. An executive from AlphaLoan said, "The initiative aims to support individuals who need a loan in these difficult times. The revealing insights derived from the information we collected will help us further validate and modify our artificial intelligence (AI) models as well as convey the voices of our users to ten of our bank partners with the aim of helping them improve customer services."

AlphaLoan adopts AI to streamline the application process, passing on the time and cost savings to borrowers

The report unveiled some interesting facts. The interest rate that accrues on a loan approved by banks is 3.1% on average higher than the advertised rate. Taking action solely based on the advertised lowest rate and annual percentage rate (APR) is a bad decision. By comparison with data collected from user feedback, AlphaLoan's forecast concerning the personal loan interest rate, availability of a credit facility and likelihood for loan approval had a 94% accuracy, serving as a testament to the their capabilities in helping prospective borrowers find the best lender with the most favorable loan conditions. Notably, up to 12% of survey respondents indicated that financial institutions need to streamline the complicated and time-consuming loan application process.

Mr. Chang, one of the survey respondents, was shocked to see the high interest rate offered by the bank that provides his employer with payday loan services after he had compared it to the advertised rate. The advertised rate was less than 1%. Finally, he identified a lender that offered the lowest rate by leveraging AlphaLoan's comparison services. He said, "It was difficult to find the best loan solution." Ms. Hsu was a frequent user of a revolving credit facility with a relatively low credit limit. However, she did not know the tool came with a high interest rate and negatively affected her credit score. By using AlphaLoan's loan integration services, she saved on interest costs and improved her credit rating.

A rational analysis of financial needs when working with AlphaLoan plays a key role in finding the best possible loan solution

AlphaLoan offered potential borrowers four tips as a result of what was revealed in the report:

• Make a list of financial needs and expenditures over the next 12 months so one can get an early evaluation and find out the most appropriate options. Making a decision without any research when you need money urgently may place a greater burden on you.
• Do not work through an agency to apply for a loan, as the agency may charge a high handling fee and damage your relationship with banks.
• Identify the lender that offers the most favorable conditions by using the cost-free evaluation services offered by AlphaLoan, a trusted partner in the banking sector. If you do not qualify for the lowest interest rate, first take the necessary steps to improve your own credit rating and obtain a revised evaluation before submitting the application.
• If you fail to meet the required application standards, please refer to the local labor relief program immediately for an emergency loan worth NT$ 100,000 (approx. US$ 3,342).

According to the AlphaLoan team, the survey validated and further enhanced the evaluation technologies for personal loans, opening up possibilities for improved loan services at banks. The firm will continue to share the advice from its bank partners and other helpful information derived from the analysis of the data, as well as roll out competitive loan solutions designed specially for AlphaLoan users in collaboration with its bank partners. With the Open Banking architecture, AlphaLoan will work with its bank partners to improve the prospective borrower's experience by streamlining the process, from obtaining the information to applying and receiving a loan.

Photo - https://photos.prnasia.com/prnh/20200519/2807719-1?lang=0