If you have questions of your own regarding Digital Lending, feel free to submit them in the Comments box below and we will answer them right away.Is there any human intervention prior to funding the loan?
The level of human intervention in the loan approval process can be defined by your institution.
The MinuteLender™ technology can automatically approve individuals and small businesses for loans based on your institution's underwriting and risk tolerances with a matrix. Alternatively, your institution can employ processes after the submission of an application to add steps for final approval. For example, some community institutions like to personally review the loan accounts before completing and funding the loan. The MinuteLender platform provides the flexibility to be tailored to your institution's objectives.
Our systems protect the bank processes by displaying an on-screen message at the end of the online application that says: "Congratulations you have completed your loan application. Review is required before final approval."
Most of our clients close 99% of the loans with no other review. However, the MinuteLender platform allows institutions to add steps for additional review if desired.
Will my commercial loan officers feel we're taking loan volume from them if we move to this online platform?
Many community banks over the past 20 years have stopped making business loans under $50,000 largely due to the costs to underwrite and service them relative to their profitability. The response to loan requests of this size is oftentimes, “Just get a credit card.” Yet, 39% of all business loan requests are less than $50,000; and 51% are under $100,000. The demand for smaller dollar loans is evident; but the last thing your institution wants to do is tie up highly productive commercial lenders renewing $30,000 lines of credit.
In our experience, most loan officers welcome the online platform. With it, they can now offer an alternative to a credit card; grow their loan portfolio; and let the system monitor and renew the smaller loan automatically, while they focus on larger dollar loan deals. It is often, in fact, the loan officers who are the first ones to tell us how much they appreciate the service, especially when it helps them win business from marketplace lenders such as OnDeck and Kabbage to deepen their existing loan relationships.