Southfield-based Altimetrik has introduced its Digital Lending Platform for banks to offer online lending. It’s designed to increase satisfaction among online borrowers.
While online lending has surged in each of the last several years, satisfaction among online borrowers is far lower than those taking loans from traditional banks, according to Altimetrik.
“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 of 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.”
The solution is designed for mid-tier and small banks, which are losing market share to FinTechs in the $138 billion U.S. personal unsecured lending market, the fastest growing segment at 11 percent annual growth, according to Altimetrik.
On the commercial side, there’s opportunity to grow online approval amounts, as the 2019 Fed Small Business Credit Survey indicates; of 43 percent of all businesses that applied for funding, 20 percent got the money they were seeking.
The platform offers a loan origination system for many banks that don’t have digital enablement capabilities or are constrained by legacy systems. The biggest challenge for mid-size banks is lengthy loan processing times for applicants. Reducing this and improving other aspects of traditional loan origination enables mid-size banks to compete for customers they would otherwise lose.
“This point solution emerged from our work with a regional bank around the SBA Paycheck Protection Program and has evolved into addressing a broader industry need,” Sundaresan says. “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 Digital Lending Platform’s client-branded end-to-end user experience, automation, and artificial intelligence enable banks to increase lending volume and velocity, access previously untapped customer segments, increase margins, and improve risk and credit decisioning. It offers personal and SMB loan origination and integrates with bank systems.
“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.”
Altimetrik also has offices in Detroit, New Jersey, California, and Missouri, as well as offices in India, Singapore, Uruguay, the United Arab Emirates, and Japan.