In the payday/cash advance lead vertical, a ping tree is frequently used to find a lender for an applicant looking to borrow money as a short term loan.
Once the lead is generated, it is posted in real-time to a lead management system that supports the ping tree model. Potential lenders are preconfigured to participate in the ping tree on certain price tiers. Depending on the quality of the lead, it will be initially offered to the top tier members of the ping tree.
Prior to sending a lead, lenders may specify demographic filters for leads such as the applicant’s loan amount, state, income level, age as well as gender. If the payday lead passes the lender’s initial filters, it will be sent directly to the lenders loan management system. Once it arrives, the lead will go through an underwriting process. The underwriting process will check for things such as the applicants credit score, employment as well as banking history.
The lender will have a predefined scoring system to determine if they would like to fund the requested loan amount by the applicant. In the event the lender chooses to fund the loan, they will respond back with an accept response.
The accept response will typically include a redirect URL that points to an electronic signature page (E-Signatue). This page typically contains the terms of the loan and a place for the applicant to sign electronically. It is extremely important for the lead generator to redirect the consumer to this signature page as soon as the lead is accepted and the redirect URL is captured.
Most loan management systems include redirect tracking to inform the lender that the lead they just purchased was redirected properly. This process helps reduce fraudulent or non real-time applicant leads from being purchased.
If the first lender in your ping tree does not accept the lead provided, the lead moves down the tree to the next lender. This process is repeated for all of the lenders in the first tier. In the event all lenders in the first tier do not purchase, the lead may be sent to the next pricing tier.
Lead Capsule supports creating ping trees to ensure lead generators can fully monetize the cash advance / short term lending leads they have generated. Our ping tree software is fully configurable and supports filtering, lead verification as well as integration with a wide variety of loan management software platforms.