Global Reach: Operates in all 50 U.S. states, Puerto Rico, Italy, and the United Kingdom
Consumer Base: Served more than 4 million consumers and thousands of businesses
Ownership: Subsidiary of Marmon Holdings, Inc., which is a Berkshire Hathaway company.
Introduction
UCFS operates as a specialist in indirect financing. They do not typically lend directly to consumers at the point of sale; instead, they purchase retail installment sales contracts from merchants and distributors.
Primary Industries:
Medical: Dental, mobility equipment, and elective procedures.
Home Improvement: Water filtration systems, HVAC, and cleaning system sales (e.g., Kirby vacuums).
Professional Services: Tax relief, funeral homes, and veterinary practices.
Retail: Jewelry, furniture, and pet financing.
Financing Products: Offers "closed-end" retail installment contracts with terms such as 90-day, 180-day, and 12-month "same-as-cash" (0% APR if paid within the window).
The Power of Orchestration Layer
The flexibility of using the latest technology and partnership through a plug and play platform like LendAPI enables UCFS the ability to launch new products in record time as well as taking advantage of the latest technology partners to gain the maximum amount of tech-leverage from originations to loan servicing. Now only will UCFS enjoy the latest data streams from identity verification players to credit bureaus but they also get to access the latest decision engine technology and servicing tools.
We’ve been working with LoanPro, a state of the art loan management system for a long while now and we are pleased to be working with them again on this important quest to bring the best LOS and LMS combination to the market. From a decision engine perspective, we will be working with Osciliar, a decision engine firm based in San Francisco that’s on the forefront of decision science frontiers.
Lastly, we will be working with our partner Praxent, a fintech software development company that can build just about anything known to men.
The combination of LendAPI, LoanPro, Osciliar and Praxent represents the future of FinTech Lending Stack. From the apply button to amortization of loans as well as latest decision technology to reduce defaults and increase conversion, this modern stack is what banks, fintech, financial services deserves to launch, optimize and scale.
The Point of Sale Financing
Point of sale financing, buy-now-pay-later (BNPL) are nothing new. These are closed end installment loans offered by merchants to ease the pain of owning products or receiving services. As inflation runs rampant, affordability of product and services become an issue for many consumers.
Point of sale financing is a great way to lower the cost of ownership by increasing the purchase power of consumers and families when they are making critical purchasing decisions. UCFS, United Consumer Financial Services have been offering these products to millions of Americans and they are looking to bring these services with even more speed and certainty to their merchants and consumers.
Modern Issues Require Modern Solutions
One of the most important aspects of point of sale financing is instant issuance of credit. LendAPI and Osiliar are working together to bring the finest degree of calculation and speed to the consumer as soon as they submit their application. This new lending stack will bring in the latest data source and technologies to verify merchants, their consumers and render an instant decision that gives certainty to merchants and provide the best customer experience possible.
Approval rate has always been the most critical aspect of point of sale financing. Pure play lenders are at odds with their merchant network because of the inherent conflict of interests built into the business model. Pure-play lenders need to control their default rates and charged-off rates and often change their approval rate without telling their merchants causing massive unrest amongst their merchant network.
Retailers and merchants-network are now looking for a closer relationship enabled with technology to find a balance approach between approval rate, merchant discount rate, default rate and interest rates.
These four rates of BNPL is a multi - variable solve and required decision engine technology that can adjust for pricing, MDR in a dynamic way to allow merchants and lenders to strike a balance depending on the product and services offered.
New FinTech Stack
With the advent of commoditized lending stack and A.I. automation, we are at a new dawn of how financial services are now leveraging technology to dominate their market. The likes of LendAPI, LoanPro, Osciliar and Praxent will completely change the way lenders launch new products today.
