Credit technology provider Abound has launched an API-based one-stop shop for all customer payment needs.
According to the company, Defray will use continuous payment authority technology – the same technology behind subscription services like Netflix – to ensure real-time transaction data, a simpler onboarding experience and improved fraud protection for customers.
The platform will also offer flexible deployment options for them, allowing them to efficiently provide finance services, while eliminating administrative burdens, speeding up cash flow and lowering risks from payment defaults.
“If a customer misses a payment, brokers can cancel policies efficiently without incurring financial losses,” the company said.
Designed specifically for insurance brokers, the company said brokers can rely on Defray to supply the credit or “self-fund” the loan while leveraging the platform’s advanced underwriting and payments platform.
The company said the platform also aligns with the Financial Conduct Authority’s call for fair value and technology adoption to improve customer experience.
Earlier this year, the FCA announced a market study that elicited mixed reactions from the market. The study aimed to understand whether premium financing represents fair value for motor and home insurance buyers.
As motor insurance premiums climbed sharply due to inflation and increased claims and administration costs, Head of Defray Christopher Rees said the platform will support brokers by replacing direct debits with real-time, trackable payments. This will not only help lower those costs but will also reduce the risk of fraud and bad debt, while improving operational efficiency.
“Defray is a game-changer, bringing transformative innovations to brokers,” Rees said. “These innovations can save brokers time and lead to more competitive finance arrangements for customers.”
The company also said that Defray is well-positioned to assist in requiring broker commission disclosure following a recent Court of Appeal decision that is expected to drive a shift toward self-funded premium finance services.
