Technology-Driven Risk Management & Security Structuring

Apxium's technology provides several layers of risk insights for smarter risk management. This starts with its deep data integration with the Practice Management Software utilised by the tax agents of borrowers, which provides a preliminary view into the payment performance of their clients, prior to entering into a loan contract. Once Apxium enters into loan contract with a borrower, its automation software and Smart Payments Tech adds a deeper layer of value and risk management. This is detailed as follows:

• Risk insights - Payment Performance Data: given Apxium provides Accounting Firms with the payment gateway through which their clients pay their accounting fees, a history of their clients’ payment performance data is at hand. Combined with Open Banking data, this provides deeper insights into clients’ capacity to meet their creditor obligations to ensure only the highest credit quality borrowers are selected to optimise risk-adjusted returns for Lenders.

• Identity Validation: Apxium’s data integration with its Accounting Firm clients’ Practice Management Software provides visibility over the identity of their clients. This enables a higher degree of pre-qualification than other financiers' ‘cold calling’ sales methods.

• Cash Flow Optimisation: Tax Pay provides a ‘cash smoothing’ mechanism through which borrowers can reduce the variability of their cash flow. This reduces operating risk, thereby improving solvency and credit risk to ensure higher quality yields to Lenders.

• Smart Payments Tech: Apxium’s technology is able to execute payments on behalf of the client and settle funds directly to suppliers (in this case, the tax/revenue authority such as IRS in the U.S. and ATO in Australia) to eradicate fraud, in a wide range of currencies with the necessary approval mechanisms built in.

• Workflow Automation: The extent to which Apxium’s technology streamlines the entire client engagement experience for both the Tax Agent and its client (the borrower) delivers significant operational efficiencies. This reduces cost for Apxium to such an extent that it is able to operate its lending products with greater profitability than competitors. These benefits ultimately flow through to Lenders, who share in these economies, thereby unlocking additional return relative to the given level of risk than what competing financiers are able to achieve.