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Accelerating FinTech transactions with Contract Automation

  • Industry Fintech
  • Employees 8
  • Contract time < 1min
  • Location 4 jurisdictions
  • 73 Hours saved
  • 96% Faster transaction
  • 1/2 Workday automated

Executive Summary

Fintech is a tough business because of demanding regulation and the high speed of change in the market and technologies. The Fairown founding team understood this, and engaged with Avokaado to handle legal nuances automatically when closing a transaction.

Fairown is a subscription-based financing platform for purchasing products that are frequently upgraded. They work with retail SMEs and banks across Europe to provide customers with the best loan options on the market. A year ago Hendrik Roosna, CEO of Fairown, decided to leverage the Avokaado platform and API to deliver a seamless, automated client journey. Fairown integrated with Avokaado for contract automation within their product during the development phase, speeding up their time-to-market. The Fairown founding team were committed to automation within their business because they believe that this optimally unlocks client value and increase business agility.

Today, Fairown makes any type of loan or lease transaction online in under 1 minute, closing hundreds of deals per month. The results have shown this mindset paying off as the company is now scaling up and entering new markets. The key to their success is the adaptability of automation tools, which was a key consideration behind them choosing Avokaado.

The challenge

When launching Fairown Finance, Henrik had a choice to make. It was between building an in-house solution to automate contracts with dedicating development resources or buy in something that would meet clearly defined needs and requirements. His decision was to ideally focus on core team, competencies and technology, preferring to outsource wherever a solution fit-for-purpose would be available. They first started with building more detailed clarity in-house on what the business-level requirements were: 1) an adaptable solution for market-specific nuances, 2) a pricing model that long-term offers more customer value, saves costs and – more importantly – time.

As they researched the market for contract automation platforms, while it may seem like there are many out there, their development team needed one that was suitably flexible and full-featured to be integrated with over API. A platform where different financial institutions provide retail end-customers with quick financing requires a lot more flexibility. Fintech professionals understand this.

Another must-have was digital signing flow to send the signed contract to the Fairown platform and attach it to the related transaction file. The end goal was to send and receive contract data from Fairown platform so that the Fairown’s client inserts data into new financing request, submits it and receives the contract within seconds with matching terms, clauses and client data.

The solution

Once Fairown team got clarity on their business needs, they made the decision to use Avokaado’s API to create seamless contract flows. The specific functionality that they implemented offered them the following:

  • possibility to change, add or update contract templates in-house, adding all necessary financing institution logos and other branding elements
  • fast access and management of signed documents and setting reminders for them
  • managing product-specific legal nuances of each transaction
  • signing flow

Hendrik says:

                    

Apart from the core contract automation, we requested some features tailored specifically for us on-the-fly and the Avokaado product team was very helpful and supportive in delivering all the developments on time. After that we also started using Avokaado for our internal daily document management

The results

Today Fairown uses 10 different financing contract templates in Avokaado’s platform. Generating contracts based on user data provided all the way through to sharing it with the parties takes almost no time at all. Their volume of customers getting contracts and signing digitally exceeded hundreds of financing transactions a month within less than half a year of launch.

Building on this success, Fairown plans to scale up growth this autumn opening up to the Nordic market. That means 4 new markets, i.e. 4 new jurisdictions leading to 4 times more automated proposals and contract templates for transactions. They’re able to move forward with confidence knowing that the Avokaado platform’s adaptability fully supports this level of growth. One of the biggest challenges that cripples startups is the growing pains at scale. Fairown have proven that adding new jurisdictions with applicable financing documents would not take more than a day, enabling them to keep up the pace of growth.

Advice

Hendrik says he can’t imagine Fairown’s business model scaling without their commitment to automation:

Using manual a contract process for transactions less than 10,000$ in value is unreasonable because of the staffing and management cost. In Fintech contract automation is critical.

When choosing to integrate contract automation into your business model Henrik recommends analyzing what is the best solution for you:

Line up all your must-haves and be ready to narrow down your expectations at the beginning. Finally, remember the team behind the product is what brings success to the automation implementation – not the technology alone.

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