In July 2022, CBS announced that is developing a major upgrade of LORES, its loan referral application system. LORES connects business customers with banks – to get access to finance – through a secure, technically professional loan processing system. The updated platform, called LORES+, will feature a number of innovations. One of the biggest changes, is that LORES+ will now offer an open-platform to SME customers who can apply directly to the system. (The previous version maintained a closed B2B environment). LORES+ will also feature a matching algorithm, to ‘pair’ the business demand with offers from Financial Institutions. SMEs will be now able to apply online for a loan in under 90 seconds and get matching with the best funding option through its proprietary system algorithm. Business owners can also choose from a variety of financial products, that LORES+ will host, through a special agreement with Financial Institutions. Banks have embraced LORES because it saves time for their loan officers. The quality of loan applications has also high - with an estimated 1% NPL rate – allowing banks to lower the credit risk. SMEs in Albania or Western Balkans (WB) in general, struggle to get funding for investments. They produce 80% of GDP but receive only 35% of financing. 83% of business owners also believe the loan application process presents is a big challenge. LORES aims to close this gap, by creating a fintech platform that seamlessly connects businesses with banks, through a secure environment. LORES has enabled 457 business customers to receive $15 Million in funding; another $22 Million is in process. LORES maintains a cooperation agreement with 9 of the largest Financial Institutions in Albania. LORES is a developed through a partnership between USAID and CBS. The first prototype was launched in 2016. After its successful launch, CBS and USAID joined forces again in 2022 to expand into LORES+, a more advanced platform. In addition to Albania, LORES+ is expected to launch in Kosovo and North Macedonia by 2023.
