How Mobile SDK Would Better Affect Loan Decisions.

March 4, 2024
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Periculum Team

When it comes to lending, the most important thing is to get the right information at the right time. To give out loans, lenders need to understand the creditworthiness of borrowers. This has been one of the concerns of digital lenders and financial institutions alike who give out loans. Even though some technologies can help analyze data and give data-driven actionable insights, it just might not still be enough. As a lender, you want to be able to understand the affordability of your borrowers with all the data they provide. Can they pay back the loans as they claim? Are the details of the bank accounts they gave during the onboarding process, accurate? These are questions that need answers if a lender wants to minimize risks. Fortunately, there are new ways to fully understand the affordability, and most importantly the creditworthiness of a borrower. 

Technology has come a long way in recent years, so it should not come as a surprise that lenders are starting to use mobile data in their loan decisions. Let’s take a dive into exactly what mobile Software Development Kit (SDK) is and how lenders can use it to further improve their loan decisions. 

Alt text: embedded mobile lending SDK

What Is a Mobile Software Development Kit (SDK)?

Starting with the technical definition, Software development kits (SDKs) are tools and libraries that help developers build apps. They can be used by anyone to build new applications, and they are often used in conjunction with other resources such as data sets and databases. In SDKs, developers have access to a large number of APIs that allow them to develop apps without having to write any code.

A mobile SDK on the other hand is described as a “software package that contains a set of tools that can help to build platform-specific mobile applications and implement new features in existing mobile apps.” In simpler terms, a mobile SDK would provide insights into what you are trying to achieve as a lender by analysing user-permission data. 

Additionally, a mobile Software Development Kit (SDK) is a way to integrate third-party software into your app. The SDK can be used in a variety of ways, including data collection. For example, if you're using an analytics tool like Google Analytics or MixPanel, you can use the SDK to show your user how many users are visiting their website as well as which pages are most popular. 

But for lending purposes, SDKs allow developers to create apps that will work seamlessly with your platform with which you can easily collect data from customers throughout their loan process and allow users to connect with potential lenders.

Alt text: Software development tool kit 

How Does Mobile SDK Affect Loan Decisions?

1. Better Credit Information

The best way to improve loan decisions is by providing better credit information. In this case, we're talking about mobile data tracking and loan analytics. The first step in improving your company's ability to make accurate decisions about loans is getting the right kind of data on your end users' behavior. 

The second step involves crunching that information with machine learning algorithms that can tell you how likely it is that a given user will default on their payments or buy another house in the future - which means you'll have a better idea when it comes time for you to approve or deny their application or to put in lending lingo, you can determine their creditworthiness.

The third step is using all of that information to help drive better business decisions. You'll be able to see which loan products are more likely to lead to defaults and foreclosures, and you can use that knowledge to make better offers on the front end.

2. Mobile Data Tracking

Mobile data is more accurate and inclusive than traditional data. In the case of loan applications, mobile apps can provide better access to all the relevant information needed by lenders so they can make a decision on whether or not you're eligible for a loan. Mobile technology also helps eliminate errors or omissions in documents submitted through traditional channels like paper and email.

Mobile apps allow lenders to track your progress throughout the buying process - from when you first applied for a mortgage loan for instance, up until closing day - making it possible for them to spot any problems before they become big problems later down the road (elderly parents living in separate households, say).

The mobile app also makes it easier for lenders to communicate with you throughout. They can send out updates on your loan status as you move through different stages of the application process and make it easy for you to submit documents whenever they're needed. You don’t have to stress about getting your documentation sorted out.

3. Predictive Analytics 

With the rise of mobile devices, it's important to understand how they can affect your business. Mobile data is the new credit score. It's more accurate than traditional credit scores and much more convenient than traditional ones.

Mobile data can be used to better predict loan defaults, customer behavior and even their ability to pay back a loan in full or on time. For example, if you're looking at someone's mobile phone records (or other types of data), then you'll see whether or not they've spent any money on entertainment in recent months--and if so, what kind? If an individual has been spending money at bars every night for the past six months but has not paid off his/her debts yet; then he/she may not necessarily be able to afford another drink tonight either!

With these predictions, it’s no wonder that the banking industry is watching mobile technology closely. The fact that an SDK can be used to create apps in a short period of time and make them available to any type of device makes it an ideal candidate for bringing customer service into the 21st century. If as a lender or a financial institution, you are not considering this option now, they should start considering it immediately!


Unified Mobile Data SDK By Periculum

Interestingly, at Periculum, we have built a mobile SDK. The Unified Data SDK can be used to access and analyze financial data from multiple bank accounts within a financial institution based on user permission. It provides an extensive understanding of prospective borrowers’ financial affairs by combing through all applicants’ mobile financial data. Hence totally identified all of their exposure to the different banks and other lending companies.


For a free demo, you can send an email to

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