Read the full press release on Business Wire.
OAKLAND, Calif.--(BUSINESS WIRE)--Peach Finance, the leading modern loan management and servicing technology platform, today announced a major additional investment in its first-party collections capabilities. While Peach’s existing capabilities were designed to match those of external collections systems, Peach is uniquely positioned to be able to exceed those capabilities as the only API-first loan management provider with first-party collections built in.
Lenders’ loan management and collections systems are very often decoupled—typically because end-to-end functionality is not available on a single platform. But this undermines lenders’ ability to collect effectively, since collections systems need access to as much borrower data as possible to deploy sophisticated and adaptive collections models and strategies. In addition, decoupled systems can make accurate credit bureau reporting more challenging due to delays in communication between systems, while differing lines of sight into borrower communications between lender and servicer can introduce compliance risk.
Peach’s tight integration between its loan management and collections systems enables it to realize functionality, efficiencies and compliance benefits far beyond those of disparate systems. Lenders will be able to take advantage of automated collections campaigns, robust loan modification tools, temporary payment plans, promise-to-pay analytics, automatically created collections cases, pre-integrated communications tools and templates, cases and workflows, Compliance Guard™ monitoring, and more.
“Peach is committed to continual innovation as a market leader in modern loan servicing technology,” said Russell Braden, VP of Product at Peach. “That’s why we aren’t satisfied with matching the functionality of external servicing platforms—we are determined to exceed it. In addition to all the collections tools we provide, we will also enable lenders to leverage nuanced data points like historical on-time and late payments, communications delivery and open statistics, app activity, promise-to-pay success rates, and more to fine-tune collections campaigns and optimize performance.”
“Our clients already benefit greatly from the first-party collections tools native to our platform,” continued Braden, ”and we’re looking forward to unlocking even more value for them in the months to come.”
Earlier this year, Peach announced the launch of its Supported Portfolio Migration™ capability. A first of its kind in the lending industry, the capability streamlines the migration process and gives lenders the ability to manage migrations themselves, reducing the time, effort, risk and cost associated with migrating their existing lending portfolio. The tool is suitable for both installment loans and lines of credit, and is offered at no cost to lenders migrating their portfolio onto Peach’s platform.
Peach also recently announced the beginning of its international expansion with a launch in Canada.
About Peach
Peach is a cloud-native lending technology platform that helps fintechs and traditional financial institutions quickly launch and confidently scale lending programs. Peach is the only lending platform built on an Adaptive Core™, a new paradigm in loan management offering complete configurability and support for virtually any asset class. For lenders with existing portfolios, Peach provides the industry’s first supported Portfolio Migration capability. The company’s fully integrated suite of API-first products includes a loan management system with 250+ configuration variables; a suite of proprietary servicing tools, including a lending-specific CRM, borrower portal, agent portal, payment processing, communications, reporting and first-party collections tools; and Compliance Guard™, a proprietary compliance monitoring system. Peach was built by leaders from top fintechs like Affirm, Avant and Prosper, who set out to create the most configurable, robust, compliance-forward and future-proof lending platform in the market. Peach’s mission is to improve lives by giving every lender the power to innovate. Learn more at peachfinance.com.
Peach media contact
Crayton Montei
lender’s priority list. But that doesn’t mean compliance is straightforward, even for lenders with the most earnest intentions. Often, legacy infrastructure is the culprit, making it difficult for lenders to take the actions clearly outlined in the law. Even regulations that haven’t changed for some time—like the—still present significant challenges for many lenders.
The SCRA grants active-duty service members the ability to request certain protections during the period of their deployment, enabling them to devote their energy to serving the country. These protections include a reduction in interest rate to a maximum of six percent on any pre-service loans. While the SCRA in its current version has been law since 2003, the number of recent enforcement actions indicates just how difficult it is for many lenders to comply with the SCRA’s interest rate protections.
Blunt tools in the absence of a scalpel
For example, in October of 2022 the Department of Justice (DOJ) announced that the financial leasing arm of GM agreed to pay over $3.5 million to resolve allegations in relation to
Peach’s approach to SCRA
At Peach, we brought real-life lending experience to the design of our platform. So from day one, we recognized the importance of being able to make retroactive changes to loans. (There are numerous applications beyond SCRA, including our Supported Portfolio Migration.) In the case of SCRA, Peach has long enabled lenders to retroactively change interest rates and waive past fees—as separate, manual actions.
Peach’s approach to SCRA
This was functional, but the ideal way to implement SCRA is to make these changes simultaneously. We now support this capability by leveraging the power of Peach's Loan Replay™ engine, which can make changes to the ledger at any time, and then recalculate a loan’s history in light of those changes. The new combined functionality is as user-friendly for your agents as processing a payment.
Peach’s approach to SCRA
Specifically, the new SCRA feature allows your agents to perform the following adjustments simultaneously on a loan of an active-duty service member:
- Lower interest rates to 6% (and lower the recurring payment during the active-duty period to account for the interest rate reduction)
- Waive fees, if necessary
- Enact these changes retroactively, if necessary, and replay the loan history with the rate and fee adjustments
- Preview the intended changes
“We launched our first product on Peach in six weeks. Eighteen months later.”
John Smith, CMO
Our SCRA functionality is available via API as well as through our white-label agent tool. The white-label agent interface can be seen here:
Peach’s approach to SCRA
Our SCRA functionality is available via API as well as through our white-label agent tool. The white-label agent interface can be seen here:
For those working directly with the API, this can be as simple as sending the following request body to the SCRA endpoint:
You’ll receive a response with either the actual post-SCRA adjusted payment plan or a preview of it. Below is a comparison of a payment plan prior to the SCRA adjustment, and the expected payments after the SCRA adjustment. The SCRA period is in effect for the first two months, and thus you will see the interest rates lowered to 6% in the response body (and the recurring amount due lowered by the amount of the interest rate reduction for the two relevant months). The origination fee has also been canceled.
The breadth of loan data needing to be adjusted means that rewriting loan histories requires the right design and abstractions, and having a built-in layer of abstraction to handle retroactive changes is the only feasible approach. Because of our team’s combined experience in the real world of lending, we know that the need to edit past loan events is inevitable. So we’ve designed a system that makes these changes as painless and automated as possible.
