BOSTON–(BUSINESS WIRE) – COVID-19 has accelerated the digital switchover across all industries, and commercial banking is no exception. Banks and credit unions with over $ 1 trillion in combined assets use fast-growing fintech Numbered to provide online applications and digital borrowing experiences for the Paycheque Protection Program (PPP). Of these lenders, 82% of businesses choose to apply for PPP loans online, rather than through traditional branch channels.
In a survey last week of more than 600 commercial bank executives using Numerated, 64% said this massive digital lending adoption will impact traditional lending at their institution in 2021.
For National Bank of the Valley, a $ 42 billion regional banking leader with more than 200 locations, using Numerated for PPP, this is the first time the institution has offered a digital loan application to its commercial bank customers. When surveyed with these companies, 92% said the app was easy to use and 87% said it made them feel confident about applying for these complex loans.
“The PPP has clearly shown that business customers value a streamlined digital application process. Historically, online applications have been reserved for our consumer products, but this experience has taught us that our business customers value this same level of online convenience, ”said Rick Kraemer, executive vice president and chief financial officer of Valley National Bank.
“With Numerated, we pre-populate over 75% of PPP loan applications with data we already know about our business customers. Numerated not only simplified the eligibility of complex PPPs in a user-friendly logic, but it also provided an additional level of quality assurance to applications, allowing us to use less than a quarter of internal resources compared to previous cycles of PPP, ”Kraemer said. “We look forward to expanding this digital convenience to more commercial banking products in the future.”
Numerated’s platform uses data to facilitate loan creation and account integration for more than 130 banks and credit unions and their business customers. For complex PPP lending and forgiveness processes, Numerated’s digital app and digital lending solutions reduce PPP loan processing time from an average of 15 hours to less than two.
“Commercial banking just had its Amazon moment,” said Dan O’Malley, co-founder and CEO of Numerated. “We saw financial institutions activate our self-service borrowing interface when PPP reopened, and then we saw in disbelief thousands of businesses apply for loans without their staff having to re-enter requests or to guide them through the complexity of the program. These busy business owners will never go back to the painful paper-based process and long wait times that come with traditional business lending decisions. ”
Community and regional lenders have already taken over 100,000 PPP loan applications using Numerated in this latest round of PPP funding, totaling $ 13 billion in relief funds. These loans are in addition to the $ 34 billion on the platform from previous program cycles. At the height of loan demand, Numerated’s platform processed $ 400 million in PPP loans in a single hour.
First horizon, a regional banking leader that recently merged with IBERIABANK and has a total of $ 84 billion in assets, has been using Numerated since last April for PPP loans and forgiveness.
“We couldn’t be more impressed with Numerated’s technology, team and responsiveness throughout the PPP,” said Courtney Taylor, senior vice president of corporate banking at First Horizon. “With their platform, we’ve saved thousands of hours for our internal teams and made this experience as easy as possible for our business customers. We are expanding our partnership with Numerated following our merger with IBERIABANK, in particular to guarantee our clients a consistent and efficient borrowing experience. ”
In addition to PPP loans, lenders use Numerated to create a wide range of commercial and commercial banking products, including traditional commercial term loans, lines of credit, credit cards, SBA loans, commercial real estate loans, deposit accounts, etc. The Numerated platform distinguishes itself from commercial loan creation systems by its use of data and application programming interfaces (APIs) to create digital efficiency and convenience.
“The lenders we work with are emerging from this pandemic with a competitive advantage,” O’Malley said. “They don’t need to create a new digital bank to provide digital convenience. Within days, tens of thousands of employees of financial institutions and their business customers benefited from the digital loan. And they’re going to expect these great customer experiences and efficiencies in more of their business products. ”
Learn more about Numerated at www.numerated.com.
Numerated is a fast growing fintech that uses data to transform the way banks and credit unions make decisions. Financial institutions leverage their data using Numerated to make loan creation and account integration easier for their staff and clients. Numerated powers digital apps and digital lending experiences for over 130 major commercial banks including Bremer Bank, Dollar Bank, Eastern Bank, MidFirst Bank, Montecito Bank & Trust, People’s United Bank, Pinnacle Bank, and more. The company was recently recognized as one of the 250 Best FinTechs of 2020 by CB Insights, the Most Innovative Industry Partner of 2020 by Barlow Research and the Best Overall FinTech Software of 2020 by FinTech Breakthrough.