Credit underwriting consists of six steps:
- Borrower application for a loan
- Borrower identification and fraud detection
- Data collection and verification
- Risk scoring
- Loan pricing
- Loan agreement and advancement of funds
The underwriting process is largely performed automatically by Bondora’s proprietary IT systems. Processes requiring manual input, which include taking in borrowers’ supporting documents and related data entry, are also automated to the greatest extent possible.
Underwriters rely on a detailed, written underwriting policy and anti-money laundering policy, both of which are updated regularly. In addition, they have access to extensive documentation on risk-scoring and loan-pricing processes.