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As part of a pilot by the Ministry of Law, a Singaporean fintech startup Credit Culture has just launched its cloud-based loan platform, the first pilot licensee to launch its platform for customers.

Based on the Amazon Web Services (AWS) cloud, the platform claims to offer a simplified online application process, where fields can be auto-populated based on information from government sites like MyInfo. A credit-scoring engine sifts through the information instantly, and personalised rates are offered to potential customers.

However, face-to-face verification is still required at a Credit Culture office before funds are transferred.

Credit Culture claims that being on AWS means that they are able to employ site wide encryption, firewalls and multi-factor authentication in a bid to ensure data protection despite automation.

The end goal though, as per Credit Culture’s raison d’être, is to use its platform to reduce costs as they wouldn’t need to procure, build or maintain any costly servers. And despite conventional tech wisdom, being on a third-party system allows for reduced costs thanks to a pay-per-use payment structures and the removed need for a dedicated IT team to manage the platform.

As such, the startup can offer rates capped at 1% a month, removing high interest rates and extra charges for early settlement.

Credit Culture’s attempt to sweeten the pot includes a user interface that should be simple and understandable even to the layman, which the startup hopes would reduce the uncertainty typically tied to the personal lending industry while increasing transparency.

On the business side of things, Credit Culture opines that the AWS approach allows for scalability. Through the creation of configured templates, Credit Culture would be able to roll out quicker in new markets. The system also provides a wide variety of tools for data analytics, machine learning and AI which can be more easily integrated into Credit Culture’s platform in the future.

Founded by a group of veteran and former bankers, Credit Culture is a startup that was formed with the goal of lowering cost of credit across a spectrum of income bands, including the lower income segment that would otherwise be precluded from accessing banking facilities.

While Credit Culture has yet to launch, it has banked SG$40 million from Malaysia’s RCE Capital Berhad, via a five-year bonds that are secured with the loan receivables from Credit Culture and include granted call options for taking that stake.

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