Compliance For Credit Providers Doesn’t Have To Be Complicated

The impact of non-compliance of relevant regulations can have a detrimental effect on all credit providers in South Africa. “The penalties and fines for non-compliance can ultimately cripple a business,” says Vaughn Hechter, Head of Customer Services: NuPay and Delter at Altron FinTech. “There is also the reputational
risk, because nobody wants to do business with reputation of being a loan shark or a predatory lender.”

Keeping up with complex local and global regulations like GDPR (General Data Protection Regulation), PCI DSS (Payment Card Industry Data Security Standard), PSD2 (Payment Services Directive 2) and FICA (Financial Intelligence Centre Act) is tricky, especially when you’re trying to focus on the day-to-day challenges of running your business. The financial landscape can change incredibly quickly, as the reversal of the 0.5% VAT decision showed. How do you grow your business whilst ensuring you are staying on top of what the law says you need to be doing?

The solution lies in automation. LMS (Loan Management Systems) provided by companies like Altron FinTech take all the checks and processes required by the law and do it for you in a matter of minutes. Your customer gives you their details including their ID number, you enter the information into the system which
then runs the checks, and everything is calculated automatically. The applicant knows then and there whether they qualify for a loan, as well as how much they will need to repay, and when.

Less admin, less worry

Without this kind of automation, loan providers would spend much more of their time on admin. Making mistakes is easy when there are so many regulations, and keeping up with complex changes can be stressful. Entrepreneurs already have so much to think about, without worrying that they’ve missed an important detail.

“We are continuously evolving according to our customers’ needs,” says Hechter. “We also make a lot of effort to adapt to the changing regulatory environment. We invest in secure platforms and systems. We’ve built up the skills internally as well a network of people that have worked with us over years. Most importantly, we work with our customers and then we customise systems and solutions to make it easier for them to be compliant.”

AI and Open Banking are two of the latest trends in financial services and that means more challenges and opportunities for compliance. AI can make checking for fraud much quicker and more efficient. Open Banking is a system that banks use to share customer financial data with third-party providers, like fintech apps, through APIs (Application Programming Interfaces), but with the customer's permission. This makes it easier to provide innovative financial services and improved customer experiences.

Practical solutions, right now

Even with all this innovation, something as simple as lending money to a customer can still be very complicated. That’s why Altron FinTech has developed several solutions to help credit providers in South Africa stay compliant, while making it more affordable for them to do business.

These include:

Delfin: a complete onsite, customisable loan management system for bigger customers. Delfin includes loan documents and contracts, integrated authenticated collections, card payouts, credit bureau account updates and credit checks;

Webfin: an online, browser-based, creditors management system designed for smaller loan businesses. No installation is needed and with its easy-to-set-up design, it allows for customisation to fit your business model. With Webfin you can view reports, approve loans and manage customers from anywhere; and

Webloans: an online loan application portal that integrates with your current website, allowing your customers to apply from anywhere and enabling you to manage the applications on Webfin.

Tools like these, which include automated credit risk assessment, fraud detection, and secure data handling, all help to reduce the risks of not complying with the law. And because service providers like
Altron FinTech are constantly updating their systems with the latest changes, business owners who use these services know that they’re getting the best possible expertise.

Many of Altron FinTech’s credit management customers operate in the microfinance industry, and the company recognises the importance of its role in promoting financial inclusion while helping customers to maintain compliance. This is why making compliance easier and more affordable is so important. As Hechter
says, “We would like to rather educate business owners and help them be compliant.”

Together, established fintech leaders like Altron FinTech and new entrepreneurs in microfinance can help give every person in South Africa access to the finance they need to achieve their goals.

About Vaughn Hechter
With over 25 years of experience in the credit and financial transacting industry, Vaughn has built a career defined by dedication, innovation, and a passion for driving meaningful change. His journey is rooted in a strong educational foundation, having earned a Master's degree from the DaVinci Institute and completed the Senior Management Development Programme at the prestigious University of Stellenbosch Business School - Executive Development.

As a seasoned leader at Altron FinTech, Vaughn’s commitment goes beyond traditional metrics of success. He is deeply passionate about delivering exceptional customer service which is evident in his relationships with customers and his team, fostering diversity, and building partnerships that create win-win outcomes.
His focus on innovation is evident in his ability to rethink systems and processes, driving efficiency and operational excellence across the board for Altron FinTech for nearly three decades.

Vaughn’s leadership is powered by a vision of creating impactful solutions that not only keep the business growing but redefine the customer experience from SMME’s to enterprise customers. He’s known for his ability to see the bigger picture, while also staying close to the details that drive success. With a career centred around empowering teams and optimising performance, Vaughn continues to be a driving force behind Altron FinTech's forward momentum.

About Altron FinTech

For businesses looking to simplify complex payment environments, Altron FinTech is the reliable fintech partner that provides payment and collection solutions, transaction switching, card personalisation, and credit management solutions.

Proudly South African, our personalised customer service ensures that your business is always on, compliant, and resilient and that payments are simple, safe, and reliable.

Because you matter, we simplify fintech complexities and help your business grow into tomorrow.