Use Cases for Lending, Payments, and Beyond

When we talk about smart routing, it’s easy to focus on the mechanics—how multiple data aggregators are evaluated in real-time, how the best provider is selected for a specific need, or when fallback options need to be triggered. But what does this look like in practice? Let’s break it down through three real-world use cases in fintech: account funding, transaction monitoring, and cash-flow based underwriting.

1. Account Funding: Converting More Users, Securely

One of the biggest challenges with account funding is ensuring your users can effectively link and authenticate their bank accounts during onboarding. Rely too heavily on a single aggregator, and you risk being unable to authenticate their accounts. Go the manual route—asking your users to enter their account and routing numbers themselves—and you’re inviting issues like typos, user drop-off, or even fraud.

Luckily, this is where smart routing shines:

• Better Coverage: By leveraging multiple data aggregators, you ensure higher bank coverage, and that increases the likelihood your customer will successfully authenticate their account. That, in turn, reduces churn.
• Favoring OAuth: OAuth connections (and tokenization) allow the underlying account and routing data to be shared without the need to handle sensitive PII directly. This enhances your security, supports your compliance posture, and builds trust with your users.

The result? Fewer users drop off, and more accounts get funded.

2. Transaction Monitoring: Comprehensive Coverage for Multiple Accounts

For use cases like personal finance management (PFM) or credit stacking, users often connect multiple accounts across various banks. Relying on a single aggregator leaves gaps—users might find one bank but not another, resulting in an incomplete financial picture. Missed connections frustrate users, create drop-offs, and limit the value of your platform. Without deep, reliable coverage across many providers, you risk losing the trust and engagement of your users entirely. 

The key to success here– again– is global coverage:

• Broad Aggregator Reach: With multiple providers under the hood, users are more likely to find all their banks, delivering a richer, more complete financial picture. Aggregator A supports Bank of America but not First Capital Bank of Texas? No problem—Aggregator B can pick up the slack and support First Capital Bank of Texas.
• Data Fidelity: Smart routing allows you to go a step further and dynamically choose the right aggregator for each account– i.e. OAuth wherever it’s available– ensuring a higher reliability for the data you’re pulling down, with minimal errors.

This translates to happier users who can manage their finances more effectively, and fintechs that deliver more value.

3. Underwriting: A 360° View of Financial Health

Underwriting based on cash flow data relies on accurate, comprehensive data to effectively assess risk. Missing accounts, or relying on incomplete or inaccurate transaction histories can skew risk assessments and lead to bad credit decisions. Without robust coverage and reliable data, you’re not just risking inefficiency—you’re risking inaccurate underwriting that undermines trust and profitability. Smart routing corrects for this:

• More Data Sources: Again, broader coverage ensures lenders can access all relevant accounts, providing a complete view of an applicant’s financial health.
• Reliable Connections: By favoring secure, high-quality connections like OAuth, smart-routing minimizes gaps and ensures the data is up-to-date and trustworthy– with minimal latency.

The upside? Faster, more accurate underwriting decisions that help fintechs scale lending operations more confidently.

Why Smart Routing Matters

Across these use cases, the benefits of smart routing are clear:

• Broader coverage means fewer coverage gaps, more connections, and happier users.
• Higher conversion rates because users can connect their accounts more reliably– whether they’re funding, monitoring, or applying for loans.
• Improved security by prioritizing OAuth and tokenization means sensitive data stays protected.
• More reliable data and better latency via real-time routing ensures faster connections and higher-quality data– reducing delays and errors that otherwise frustrate users.

Put Smart Routing to Work

At Quiltt, we’ve designed our platform to adapt to these scenarios and more. Whether you’re solving for account funding, transaction monitoring, underwriting– or something entirely unique– our routing logic ensures you’re always delivering the best experience to your users.

Because in fintech, smarter decisions start with smarter routing.

Ready to learn more? Let’s connect.

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