Earnest Company Financial Data Engine
Earnest Company uses a financial data engine to get information about clients before lending them credit. The loans are processed fast using information from credit cards, bank accounts, jobs, and media data. Information about ones education and other 1000 sources are also used in searching for the knowledge of their clients. According to the book the client who is the buyer has to have security for them to qualify to get loans. The information on clients’ bank accounts amongst the other data mentioned above guarantee eligibility of customers for loan products.
According to page 258 of the book, a client has to have some financial reliability for them to access the loan products. The customer and the seller exchange financial assets immediately the price is established. Depending on the contract reached, the clients then begin to pay these loans with the specific interests within a certain time frame. A close study of book and the article reveals that Earnest Company does not and neither will it employ future forwards financial market. This is because the company has never envisioned borrowing from clients. There will, therefore, be no sharing of profit with anyone.
Earnest company has two major loan products. These include consumer and academic loans. The latter is offered to students. The company plans to tag low interest rates on these loans. The company has already afforded 1.9 percent interest rates on variable loans to customers. Also, the company charged interest rates of 3.5 percent on fixed rates. Earnest plans to introduce more financial products to customers at these rates. These interest rates on loans are meant to reduce the cost of borrowing hence financial weights on borrowers.