Cofidis chooses Tractis for signing loans electronically

We are pleased to announce that Cofidis will use Tractis for signing their loan agreements electronically.

Cofidis is a pioneer in off-premises distance loan granting. They began by offering fast consumer loans (Crédito Cofidis Vida Libre) and, from last year, they have started competing with traditional bank financing (Crédito Cofidis Proyecto). Today they are present in 7 countries and, in Spain, they have 1.5 million clients, 92% of which declare themselves satisfied, according to market research firm IPSOS.

First financer to offer loan signature with DNIe

Cofidis becomes the first financial firm in Spain allowing its customers to verify their identity and sign all necessary documents using their DNIe (Spain’s national eID card).

This announcement marks a milestone in the use of DNIe in the Spanish private sector and we, at Tractis, are happy to have contributed to it.

From now on, Cofidis customers can use their DNIe, or any other Tractis supported certificate, to apply for financing from the comfort of their home, 100% online, with no paper documents, trips or mailings and, once the loan is approved, the money will sent to them immediately.

Past, present and future of consumer financing

Financing firms’ job is financing. Lending money is their main activity and, therefore, it is critical to do it in a fast, safe and efficient manner. Every improvement in the approval process (application -> evaluation -> financing) improves the customer experience by offering greater speed, security and service.

Past: Money in a few weeks time

Formerly the application process in consumer finance in the face-to-face channel could be summarized as:

  1. The applicant visits the store where you want to apply for financing.
  2. Applicant completes and signs the loan application.
  3. The store sends the documentation by mail to the lender.
  4. Upon receipt of the documentation, the financer back-office manually checks that all the information is correct and complete, and validates that the conditions for granting financing are met.
  5. Financer gives the money to the applicant. If all went well, the process would take 1 to 2 weeks.

Present: Money in days

Today financial firms specializing in remote operation, such as Cofidis, have managed to optimize and shorten the whole approval process substantially:

  1. Applicant completes and signs the application online.
  2. Financer evaluates the transaction and approves the loan.
  3. The new client down-loads, prints, signs each sheet and sends the agreement back to the financer, who checks that everything is correct.
  4. Financer gives the money to the applicant. If all goes well, the process takes at least 48 hours.

Future: instant money

Through the use of DNIe and Tractis, Cofidis today offers its customers a safer, faster and more convenient process:

  1. The applicant completes the application for funding on the Cofidis website and signs with his DNIe. This request includes the user’s express consent.
  2. Cofidis evaluates the application and makes a decision in real time.
  3. Once the process is completed and the loan approved, Cofidis transfers the money immediately to the customer bank account.

Deployment plans

As to types of clients, Cofidis has started by implementing the process of signing with DNIe only for new customers and loans. In the future, they plan to extend the service to existing clients wishing to make use of their existing credit lines.

As for types of channels, Cofidis provides financing to individuals, both directly and through intermediaries. Initially, the gateway is enabled for direct loan marketing. Coming soon, it will also be available for intermediaries, i.e., commercial establishments and companies that provide financing to their customers through Cofidis.

Final words

Cofidis today’s announcement is an example of good use of the DNIe. From the beginning, the entire Cofidis team designed the project thinking only of improving the user experience (speed, comfort, safety, legal compliance) and increased competitiveness. It is a commendable effort and, as such, we wish them the best of success and hope that these good practices eventually become the industry standard.

By David Blanco
Saved in: Announcements, Tractis Signatures | No comments » | 5 March 2014

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