Automated loan system for Risicum

  • Invoicing, payment monitoring and ledger become automated
  • The system is suitable for continuous business growth

Risicum Plc is Finland’s biggest provider of small and short-term loans. The firm lends unsecured sums of up to EUR 1,000 to private individuals. Risicum is owned by the US consumer financing specialist DFC Global Corporation and provides services to approximately 200,000 customers.

When Risicum was founded in 2005, loan approval was handled internally. As the business grew and developed, the company wanted to improve its loan management system. This change induced a complete modification of the earnings logic component of Risicum’s business model.

Digia began cooperating with Risicum in 2009 and in 2010 the company adopted Digia’s loan management solution. The system traces all ‘back office’ functions after a loan has been granted.

Automatic invoicing and reminders

Around 95 per cent of Risicum’s customers apply for loans online.

When a loan is granted, the money is transferred to the customer’s bank account. The following day, a bill is automatically sent by the Digia system, which also monitors loan repayment. If no payment arrives by the due date, it sends an automatic reminder by both email and text message.

If, despite reminders, the loan is not paid off on time, the system automatically forwards the case to credit control.

Small sums, large quantities

Digia’s loan system handles daily cash balancing. In addition, it also works as a ledger, recording account withdrawals and income information, and making payments to banks. Information is sent straight to bookkeeping. The solution is integrated with Risicum’s CRM system.

Risicum’s small loans are quite different from traditional financial solutions; while each sum is small, the number of transactions can be significantly large. Such amount of data requires extensive automation of the entire process.