Online lending has surged in each of the last several years even though satisfaction among online borrowers is far lower than those taking loans from traditional banks. This opportunity for mid-tier and small banks has led Altimetrik to introduce its Digital Lending Platform (DLP) as a solution for lenders to embrace digitization and unlock their lending business potential.
“Our solution addresses the shortcomings in current mobile and online experiences for personal and commercial lending, something that is accentuated in a post-COVID world,” says Raj Sundaresan, CEO at Altimetrik. “Too many banks are stuck with a highly manual decisioning process, and they may not have the resources to develop their digital business to address new opportunities. They lack end-to-end digital capabilities like automated underwriting, e-signatures, customer identity verification, and document uploads. Now, within just a few months or less, banks can implement our DLP to increase underwriting efficiency and decrease risk, all of which is enveloped in a simple to use digital experience.”
Mid-tier and smaller banks are rapidly losing market share to agile FinTechs in the $138 billion U.S. personal unsecured lending market, the fastest growing segment at 11% annual growth. On the commercial side there’s opportunity to grow online approval amounts, as the 2019 Fed Small Business Credit Survey indicates, 43% of all businesses that applied for funding yet less than half (20%) got the funding they were seeking.
The DLP empowers these banks with a loan origination system to compete against fast growing fintech companies and major financial institutions. For many banks that don’t have digital enablement capabilities or are constrained by legacy systems, DLP offers an immediate solution to meet a growing customer demand for a better experience. The biggest challenge for mid-size banks is lengthy loan processing times for applicants. Reducing this and other cumbersome aspects of traditional loan origination enables mid-size banks to better compete for customers they would otherwise lose to more competitive solutions. It also opens the door to increased conversion based on better risk modeling and decision-making.
“This point solution emerged from our work with a regional bank around the SBA Paycheck Protection Program (PPP), and has evolved into addressing a broader industry need,” says Sundaresan. “Informed by our strong partnerships with mid-tier banks, the DLP is a product of our engineering approach and builds on our successful track record of driving fintech innovation.”
The DLP’s client-branded end-to-end user experience, automation, and AI enable banks to increase lending volume and velocity, access previously untapped customer segments, increase margins, and improve risk and credit decisioning.
The secure and extensible platform provides both personal and SMB loan origination and integrates with bank systems to offer more complete loan management and loan servicing capabilities:
- Leverages Microsoft AI for digital KYC identity verification and automates loan spread generation and scoring with a semantic analysis that deciphers cashflow from complex entity structures and multiple guarantors.
- Allows for complex PDF tax document parsing and semantic analysis.
- Offers a compelling banker dashboard and workbench for collaborative decision making and scenario analysis, and insightful KPI charts to understand trends in debt service, income, and expenses.
- Integrates with industry standard credit APIs — CBC/Factual Data for FICO and PayNet/Experian for business credit, and with alternative data sources for optimal credit decisioning.
“Embracing this kind of digitalization is no longer just a cost savings play,” says Sundaresan. “It’s a necessity to remain competitive in a hotly contested industry and more importantly a way for mid-tier banks and credit unions to level the playing field and reverse steep market share declines.“