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Commercial banking technology is rapidly catching up to innovations in the digital, non-banking sector. Larger financial institutions have realized that the future of commercial banking lies in embracing innovations that improve processes, reduce costs and, most importantly are more responsive to customer needs.
The Market of Commercial Lending Technology
While the market has a long list of players ready to serve the needs of commercial lenders, the following is a list of the 10 major fintech providers who are leaders in affordable commercial lending technology and systems covering other aspects of the banking business, from communications to data management and security.
While each offers unique products, they all provide integration and deployment, scalability, and customization that define innovation in commercial banking.
1. Integra Software Systems
Integra Software provides complete web-based solutions and has been serving the Fintech Industry since 1996. The company serves Mortgage, Consumer, and Commercial Lending sector. Its platform, called EPIC, is a web-based technology platform that uses a plug n’ play approach and allows to connect with other leading lendingtech.
Axoni is a leader in developing blockchain-based technology in commercial banking. Its suite of software products offers a full range of services built on a blockchain platform, including process automation, data security, and secure integration with third-party databases and systems.
3. Byte Software
Byte Software, was founded in 1985 and has over 1000 companies that use its loan origination software. Byte has a cloud solution for enterprise clients along with the standard on client-server offerings. Its USP is its focus on compliance and provides real-time checks, HUD-1 fee tolerance tracking, and fraud reporting.
DecisivEdge develops affordable commercial lending technology for banks and other lenders who wish to focus on the subprime borrower market. The company’s flagship product is its cloud-based Lending and Leasing as a Service (LLaaS) system. Apart from its automated loan origination and underwriting features, the advantage of the program is its affordability, as it requires virtually no system infrastructure to deploy.
5. defi SOLUTIONS
Texas-based defi SOLUTIONS provides specialized commercial banking technology for auto lending. The key feature of the system is its focus on configurability, which makes the system highly flexible for large commercial banks as well as smaller lenders.
GreenSky, based in Atlanta, has developed a mobile lending app for large banks looking to expand their online services. At least 14 major U.S. banks have already added the app to their online and mobile banking facilities.
ieDigital provides a system called Interact, which is a secure communications platform designed to provide more efficient connections between customer relationship management systems and the back office. The platform facilitates data sharing among different departments in the bank, which allows a much faster resolution of customer concerns.
SizeUp’s product is a data management software package for commercial banks that helps them improve small business customer acquisition and retention, and allows banks to introduce relevant bank products at key points in the customer business life cycle.
9. Calyx Software
Calyx Software provides mortgage software solutions for institutes including banks, credit unions, mortgage bankers, wholesale and correspondent lenders, and brokers, across the US. The company’s user-friendly technology includes features like online borrower interviews, loan origination systems, and secure electronic signature software, that smoothens and integrates various stages of the mortgage/loan processes for the customers of varied size, complexities, workflows, and channels.
MonJa offers some of the most capable and affordable automated lending solution for commercial loan underwriting on the market today. The artificial intelligence-driven (AI-driven) system is highly customizable and scalable and offers a personalized customer experience through a white label option. MonJa’s loan underwriting automation system allows for configurable credit rules, giving the lender full control of risk management and underwriting while reducing loan processing costs. The statement spreading module is unique in the market with no similar alternative solution in the space, at least not yet. MonJa Smart Scan technology allows bankers to upload borrower’s scanned financials (for example, tax returns) and get the spreads generated automatically. Just the spreading module itself can save a banker up to 70% of the time spent on underwriting a commercial deal, including complex ones with multiple entities and requiring global cash flow calculations. The system can handle those as well.
According to the financial technology website for software selection – Capterra, there are more than 100 providers of commercial lending software alone and dozens more offering other systems, the majority of all these are based in the U.S. Applications designed especially for commercial banks have been slower to develop than tools for online lenders and other non-bank financial firms, but providers have realized that the future of commercial banking also lies in the digital realm, and is responding with a growing number of products.
Finding automated lending or other fintech solutions that can improve processes, reduce operational costs, and provide better customer engagement. It does not have to be an expensive or confusing process in spite of a large number of options.
The Bottom Line
The market has plenty of financial technology providers selling lending technology. By carefully assessing its requirements and objectives beforehand, a commercial bank can find a technology provider with the right solution. In almost every case, that solution will have the features of the products that are highly responsive to the bank’s needs, easily integrated with the bank’s existing systems and scalable as business increases. Critically evaluating how the bank will generate a strong ROI on tech investment is the key to success.
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MonJa UnderwritingMonJa Smart Scan Technology speeds up commercial loan underwriting by up to 70%.