Peach has received the 2023 Banking Tech Award for LendTech of the Future. We’re grateful to be recognized alongside many of today's foremost innovators in banking and fintech.
View all the winners here.
Other recent awards received by Peach include the 2023 FinTech Breakthrough Award for Banking-as-a-Service Innovation, as well as the 2022 Future Digital Award for Banking-as-a-Service Innovation.
Historically, innovation in lending has occurred slowly because of outdated technology. Banks often require years to launch new products like BNPL, and fintechs who want modern lending software must build it in-house, leading to inflexible, purpose-built systems that limit scalability and adaptability.
Peach was founded to solve these problems—to revolutionize lenders’ ability to innovate and to quickly launch new lending products. Our API-first lending technology platform gives lenders an extremely high degree of flexibility and configurability, enabling them to offer virtually any type of loan—from BNPL to credit cards to merchant cash advances—and to configure their lending programs in unique and innovative ways. Our Adaptive Core™ gives lenders more than 250 configuration variables to define loan product behavior, and features industry-first capabilities like Loan Replay™ and Supported Portfolio Migration.
For financial institutions, Peach lowers the technological barrier to modernization, so banks and credit unions can finally innovate with greater speed and agility. For fintechs, Peach lowers the technological barrier to launching novel lending products, enabling more innovative ideas to come to market.
Our mission is to improve lives by giving every lender the power to innovate.
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To learn more about Peach, visit our homepage or check out the Fintech One-on-One podcast featuring our CEO, Eddie Oistacher.
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.
