Getting started

Froda Embedded

This article describes problems Froda Embedded solves and which scenarios it supports.

Froda Embedded is a versatile solution that enables businesses to integrate and leverage Froda's credit solutions. The platform is crafted to address challenges particularly benefiting banks, fintechs and SME sectors with its dual approach: Embedded Lending and Embedded Funding.

Embedded Lending allows businesses to offer credit directly to their end-customers within their existing customer experience, ideally suited for banks as well as bookkeeping, ERP, or other fintech systems. This approach enhances customer engagement by meeting financial needs directly, without the businesses incurring the usual credit risks.

Embedded Funding, on the other hand, is a strategic solution for businesses facing capital constraints. It enables the off-loading of debt to Froda, thereby reducing capital requirements while still keeping the customer relationship intact. This model is particularly valuable for fintech companies that aim to expand their credit offerings but are hindered by capital limitations.

The documentation provides an overview of the use cases, integration best practices with Froda's API, and guidance on utilizing the white-label client for a seamless brand experience. This ensures businesses can not only integrate Froda's solutions efficiently but also customize them to fit their unique brand and customer needs.

In summary, Froda Embedded bridges the gap between technical complexity and business growth opportunities. It empowers businesses to enhance their service offerings with integrated credit solutions, fostering growth and customer loyalty while managing financial risks effectively.

High-level overview of the integration

The integration process is designed to be straightforward, ensuring partners can efficiently offer Froda's credit solutions to their customers. Here's a high-level overview of the integration steps. Note that there’s flexibility in choosing between a direct API integration where you possess a lot of the required data and/or want to have full control over the UX and the white-label client where the workload is significantly reduced.

Step 1: Customer Contact Information
Collect and submit customer details necessary for further communications as well as disbursement and repayment.

Step 2: Loan Design
Define the loan specifics, including the type, amount and term. This initial configuration tailors the lending solution to meet the customer's needs, ensuring a customized credit offering.

Step 3: KYC Compliance
Conduct Know Your Customer (KYC) checks, covering real beneficiaries, politically exposed persons (PEP), and loan purposes. This compliance step is vital for understanding the customer's eligibility and maintaining regulatory standards.

Step 4: Revenue Estimation
Submit information concerning the customer's revenue to assess the financial health and sustainability of the business. This estimation aids in determining the appropriateness of the credit solution offered.

Step 5: Credit Assessment
Perform a credit check to evaluate the customer's creditworthiness. This assessment is critical for making informed lending decisions, minimizing risk while maximizing the potential for positive outcomes.

Step 6: Contract Signing
Facilitate the digital signing of the contract. This step formalizes the agreement between the customer and the lending entity, ensuring all parties understand the terms and conditions of the loan.