FICO, a San Jose-based data analytics company has launched Origination Manager Essentials to help smaller financial institutions make faster, smarter small business lending decisions. Delivered as a cloud service, the loan origination system streamlines and automates the decision process and gives smaller institutions access to powerful analytics in risk assessment.
The company claims that lenders using the solution can process small business loan applications in as little as 60 seconds, as opposed to days, which is still the average processing time for many lenders today when dealing with small business credit.
“Mid-market lenders play an integral role in supporting small businesses’ growth and development. With many new entrants providing loans to small businesses, it is crucial that lenders can improve speed and customer service, while maintaining strong risk assessment across their portfolios,” said Tim Van Tassel, Vice President, Credit Lifecycle Business Line, FICO.
Currently, small banks and credit unions are challenged by nimble lenders who operate online and can give auto-approvals for loans in minutes. Origination Manager Essentials aims to deliver banks the same technical advantage so they can compete on experience and relationships rather than technology.
The decision flow automation and web-based interface incorporated into the new solution allows lenders to quickly implement the solution. It has been designed to reduce the operational costs associated with compliance by making consistent, more objective decisions on small business loan applications. The solution also helps to eliminate human error and improve efficiency in data entry and loan processing.
FICO’s Small Business Scoring ServiceSM (SBSSSM) is incorporated into the solution to achieve speedy decisions, which uses proprietary analytics to measure applicant risk, based on major consumer and commercial data sources. SBSS can help smaller institutions make smarter decisions even when they don’t have the data in house. It does this by measuring and evaluating the capacity risk of small businesses applying for credit, using models built from pooled client data.
The company further explains that lenders will benefit from the cloud deployment of Origination Manager Essentials. Accessing the solution as a service ensures they can utilize the solution with little to no IT or infrastructure cost. It also allows for easy setup, scaling of operations and headache-free upgrades and maintenance.