Why SDK is great for banks and fintechs to pivot or upgrade lending software and grow profits

By leveraging the right technologies and tools, financial institutions save a lot of money and stay ahead of their competitors. But how to understand if the tech stack you’re using is “right”?

My name is Dmitriy, I’m CEO at TIMVERO and in this article, I’ll give you non-obvious advantages of SDK – also known as the Software Development Kit used for the transformation of loan origination and loan servicing.

Let’s go!

To put it simply: understanding Software Development Kits

Basically, SDK is a collection of software tools, libraries, and documentation that assists developers in creating applications for specific platforms or frameworks. SDKs boost and simplify software development by delivering pre-built components, standardized APIs, and best practices. This way developers spend a few times less time on similar tasks, while their customers save up to 70% of their dev budgets on building custom features and integrations – for their digital lending systems, in our case.

Let’s dive into detail a bit.

What’s the difference between SDK and API?

a. Scope

SDK is a lot broader notion than API. An SDK is a comprehensive package that usually consists of multiple APIs and a lot of additional tools and resources for multi-faceted support of the development process. At the same time, an API is a specific interface that enables the communication between software components.

b. Goals

SDKs are designed as a completely different approach to the software development process. They provide engineers with a set of tools and resources, similar to large building blocks, to avoid building platform components or new features from scratch. While APIs simply facilitate communication and data exchange between already existing software applications and components.

c. Use cases

Developers use SDKs to create new applications, features, or integrations for a specific platform, whereas APIs are used to access the functionality and data of existing systems or services.

d. Components

Usually, SDKs include APIs, libraries, and documentation along with additional dev tools such as compilers, debuggers, or code editors. APIs comprise protocols, routines, and definitions that build and simplify communication between various software components.

Why SDK is a game-changer for loan origination and loan servicing in financial businesses

In financial services bulky and time-consuming development of custom components from scratch can hardly match the Agile principles and may be a reason for losing customers in case competitors can react to market challenges faster than you. Challenging banks can feel this effect stronger than traditional institutions, but it is true for all cases. 

SDK-based development can cut engineering costs and build MVP solutions faster. Here are a few other advantages of SDK when compared to custom software development from scratch:

Higher software personalization

SDK allows banks to tailor software solutions easier to meet emerging market needs in feature personalization, custom loan products, or user flows. Granular personalization allows lenders to differentiate themselves in a competitive market and deliver innovative, customer-centric solutions.

Accelerated development and deployment

With pre-built components, extensive ready-to-use documentation, and sample code, an SDK expedites the development process. It improves flexibility and helps to deal with legacy code more effectively. This enables lenders to keep their engineering expenses lower while maintaining a competitive edge in full.

Seamless integration with external services

As I explained above, SDK includes APIs and can also facilitate integrations with third-party services such as credit bureaus, payment processors, and fraud detection systems by offering standardized APIs and libraries. This seamless integration enhances operational efficiency, speed, and the overall user experience.

Enhanced security and full regulatory compliance

SDK provides a solid foundation for developing custom software components, features, and integrations while ensuring adherence to industry standards and regulatory requirements. Ready-to-use kit components minimize risks, while the SDK is continuously updated and industry-checked to reflect the latest regulatory changes and security best practices.

High performance and scalability

SDKs are designed to support scalability, which is especially important for digital-first financial businesses. Compared to custom solutions that can handle increased workloads, SDK-based lending platforms by TIMVERO allow high performance without compromises. This enables lenders to confidently scale their operations depending on the size of the customer base and the number of requests and maintain peak efficiency.

Why we choose SDK for timveroOS

timveroOS, a best-in-class lending operating system, leverages the power of an SDK to provide a wide range of benefits to lenders, including:

  • Flexibility and customization. The SDK allows lenders to create custom integrations, and workflows tailored to their unique needs. It allows banks and financial institutions to deliver innovative, customer-focused solutions for loan origination and loan servicing. Suitable for both commercial and consumer lending
  • Rapid time-to-market. SDK allows lenders to launch a new loan management system in just 3 months and deliver major updates up to 80% faster. It significantly accelerates the development and deployment of new features and integrations, helping banks and FIs remain strong and profitable in a rapidly changing market.
  • Smooth Integration with 3rd-party services. In addition to dozends of pre-built integrations, the SDK simplifies connections with external services, streamlining operations and enhancing the overall user experience for both lenders and borrowers.
  • Scalability support. SDK allows better scalability, allowing lenders to adapt their custom solutions to meet growing demands without compromising performance and caring about costs for maintaining and vendors.

Is SDK really worth using?

To sum it all up, at TIMVERO we believe Software Development Kit (SDK) is an essential tool for optimizing the development of loan origination and servicing systems for our customers, particularly when used in conjunction with a powerful lending platform like timveroOS.

By harnessing the power of an SDK, traditional and digital-only banks as well as other lending institutions can deliver cutting-edge, market-oriented solutions that drive borrower experiences to the next level, allow multiple services inside via API, and streamline operations.

Along with powerful analytics tools provided within timveroOS, SDK is ready to provide you with impressive insights like a full-fledged BI platform to power up the decision-making with data.

Agile at its core, the SDK-based lending platform can become a moderate-cost innovation to your engineering strategy.

Contact us to learn more about SDK use at timveroOS.