PHILADEPHIA, May 16th, 2016 /PRNewswire/ -- LoanStar is launching a new platform that combines technology, merchant acquisition, and merchant support, enabling banks to return to consumer lending. Founders Craig Haynes and Andrew Turner, with a combined 41 years of experience in consumer lending and financial technology, have created a revolutionary FinTech product that helps banks acquire loans in order to deploy capital, and retain and grow existing merchant relationships.
LoanStar offers technology and support to banks to enable them to access loans that they currently have no way of acquiring. Loan-to-deposit ratios are at a historic low, meaning that banks desperately need to find ways to invest their capital in order to generate revenue, some banks have resorted to offering negative interest rates on deposits.
The proprietary MerchantLinQ platform, an industry first, is a free-to-use toolset that merchants can utilize to increase sales. It includes an application that can be filled out quickly by the merchant or customer right at the point of sale, on a computer, smart phone or tablet. It integrates directly to the loan origination technology already in use in the market to ensure a smooth process that is easily managed by the lender.
The decision is returned quickly, with a variety of options that allow the merchant to upsell and to offer a range of plans to tailor monthly payments to the customers' needs. If the customer qualifies for a higher loan amount, they can upgrade their purchase; the platform allows the terms of the loan to be adjusted for manageable monthly payments. The rates are lower than current in-market options, such as white-label credit cards, and there are no punitive hidden costs to customers or merchants, making it attractive to both merchants and consumers.
In addition to the technology, LoanStar provides comprehensive training to bank staff and merchants. Their sales team works with the bank to onboard merchants, and shows them how to use the technology to increase sales.
By offering this solution to merchants, banks are able to retain their merchant accounts, which otherwise would need to go elsewhere to meet their financing needs. They also gain new customers with each funded loan.
Headquartered in Pennsylvania, LoanStar is currently contracting with its first bank in Florida, and is in talks with over 30 banks and credit unions across the United States.
LoanStar has recently been selected to participate in the Alpha Program for FinTech startups at Rise Conference in Hong Kong. https://riseconf.com/
For more information, please contact:
This news release was issued on behalf of Newswise(TM). For more information, visit http://www.newswise.com.
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/loanstar-launches-innovative-point-of-sale-lending-platform-300268703.html
SOURCE LoanStar Technologies