Lending technology, often shortened to lendtech, is the software and data that lenders use to run a loan from start to finish: online application forms, identity checks, credit decisioning, contract signing, payout, repayment collection and reporting. It is the toolkit behind digital lending, which is where the full explanation of the business model, products and regulation sits.
Most lendtech stacks split into an origination side, which handles applications and underwriting, and a servicing side, which tracks balances, interest and collections. Decision engines combine a bureau credit score with other data such as bank transaction history. The same technology is used by banks, by fintech lenders and by point-of-sale products such as buy now, pay later, where the credit decision has to be made in seconds at checkout.