BBVA Compass Introduces Full-Digital Express Personal Loan

The US subsidiary of this Spanish group unveils a digital version of their consumer lending service, “Express”, for both customers and non-customers. BBVA bets on a digital approach to selling loans while providing applicants with faster, more flexible offers.

This service called “Express Personal Loan” enables customers to be granted between 2,000 and 35,000 dollars, end even up to 100,000 dollars if they apply in a branch. This service can also be a way for them to consolidate debt. Also, as a multi-channel solution, it allows subscribers to apply from BBVACompass.com, on their mobile phone or in a branch.

For eligible applicants, only their signature is required. Those whose checking account is held at BBVA Compass can receive a 1% discount on their interest rate. This rate is defined based on several factors including credit eligibility, loan amount, term length, etc. For non-BBVA customers, a pre-qualification process is run, via interrogating their credit score (soft-pull) to assess their eligibility.

BBVA does not detail this pre-qualification phase but explains that decisioning and credit granting remain fast. Approvals are near instantaneous and same-day funding is possible (if approved).

Comments – Banking institutions betting on instantaneous decisioning processes

According to TransUnion’s study Fact versus Fiction: FinTech Lenders, FinTechs held 32% market share on the US market for personal loans in 2017 (in terms of outstanding credit volumes) vs 29% held by banks. BBVA Compass is aware that the US consumer credit market shows high potential, and that customers’ expectations have been evolving considering newer competitive offers. This subsidiary is then focusing on innovative services, regardless of their sales channels.

Other banks are now betting on the notion of instantaneity. La Banque Postale, for instance, started testing a near-instant consumer lending approval system for their existing customers. And in Thailand, SCB relied on machine learning tools propose instant credit granting processes.

BBVA is a leading banks whose FinTech strategy has been drawing observers’ attention. To maintain their lead over rival institutions, they have been investing in the most promising start-ups in their field. They now confirm they will be relying on these partners to enhance customer experience. And, they recently invested in solarisBank and Atom Bank, too.