CreditPort allows e-commerce sites to integrate a loan application with a shopping cart. Consumers select CreditPort Financing as easily as paying with a
credit card. Integrating consumer finance into websites is expected to significantly change the landscape of e-commerce.Consumers opting to pay e-tailers
with CreditPort financing are offered a loan application window appearing in their web browser asking basic information about the applicant. Seconds after submitting the application, CreditPort displays a window showing loan parameters, such as interest rates, term, and monthly payments.
Businesses also use CreditPort as a stand-alone system, entering applications and offering credit over the telephone or to in-store consumers.
CreditPort automates the loan process, starting with a
credit report pulled from a bureau, such as Trans Union. CreditPort's decision support system is then used to process the data and determine which loan rates will be offered based on the credit risk of the
applicant. This can all occur in less than a minute, depending on the size of the applicant's credit file.
CreditPort is the first Internet-based system allowing businesses to pull consumer
credit information over the Internet.
As a comprehensive solution for consumer finance, CreditPort Internet components include credit applications, a broker that interfaces directly to the credit bureau
to get reports, and decision support system to create loan offers based on the product purchased, sale amount, and applicant credit history.
"Consumer finance is a crucial, yet ignored, element of
e-commerce over the Internet," says Mike Grigsby, chief operating officer, of ExtraNetworks Corporation. "Until now, everyone assumed e-tailing on the Internet required payment by credit card. By
ignoring consumer financing, e-commerce businesses are missing out on a traditionally large segment of consumer spending.
"CreditPort is designed for companies who want to offer financing over the
Internet," explains Grigsby. "That includes retailers, loan companies, banks, and credit unions."
Grigsby says technologists have been interested in electronic wallets and other forms of
cash-less payment, overlooking an increasing number of products purchased through consumer loans. In September, 1998, the Federal Reserve Board reported that consumer debt was the highest since the
Depression, with consumers purchasing more than they made.
Lenders use CreditPort's decision support system to analyze credit data, offering those with risky profiles less favorable loan rates than those
with good credit. As part of an Internet credit reporting membership, CreditPort includes basic decision support for analyzing credit data and making credit offers—an option that can cost upwards of $15,000
as part of an off-the-shelf software package.
Users run CreditPort on Microsoft or Netscape web browsers, and any operating system supported by them. CreditPort Server runs on Windows NT with Internet
Information Server. Businesses can either sign up for a CreditPort membership, using ExtraNetworks servers, or purchase a license to host the CreditPort system within their own organization.
"Retailers have embraced CreditPort because the market is so competitive that they see it as a way of gaining market share," said Grigsby. "Consumer financing is so profitable that often we see retailers
giving up profit on the sale in order to make money on the financing."
CrediPort also incorporates the new Trans Unions TU40 data format, making it one of the first Y2K-compliant credit reporting and
analysis systems.
Credit information is pulled from the credit bureau via a direct connection with the CreditPort server.
ExtraNetworks' Java Application Server (JAS) technology is used for
managing user sessions. JAS tailors and communicates the data, user interface, and business logic to the user's web browser according to the needs of the user. Many levels of security are also
managed by JAS, including encryption and authentication of data.
A Scalable Session Manager (SSM) is available to distribute user sessions across multiple servers according to user demand.
CreditPort is
available as both a service, for those companies who do not want to host their own web server, and as a Internet or Intranet application for larger organizations wishing to maintain their own system.
