Banking Fintech News

COVID-19 is Digitally Transforming Commercial Lending; Banks See Mass Adoption of Businesses Applying for Paycheck Protection Program Loans Online

COVID-19 is Digitally Transforming Commercial Lending; Banks See Mass Adoption of Businesses Applying for Paycheck Protection Program Loans Online

Lenders using Numerated to process PPP loans are seeing 82 percent of businesses choosing to apply online, with 9 out of 10 businesses reporting high levels of satisfaction

COVID-19 has accelerated the shift to digital across industries, and commercial banking is no exception. Banks and credit unions representing more than $1 trillion in combined assets are using the fast-growing fintech Numerated to offer online applications and digital borrowing experiences for the Paycheck Protection Program (PPP). Across these lenders, 82 percent of businesses are choosing to apply for PPP loans online, rather than through traditional branch channels.

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In a poll last week of more than 600 commercial banking executives using Numerated, 64 percent reported that this mass adoption of digital lending will have an impact on traditional lending at their institution in 2021.

For Valley National Bank, a $42 billion regional banking leader with over 200 locations, using Numerated for the PPP is the first time the institution has offered a digital loan application to its commercial banking clients. In surveying these businesses, 92 percent reported the application was easy to use and 87 percent said it made them confident in applying for these complex loans.

“The PPP has made it very clear that commercial clients appreciate a streamlined, digital application process. Historically, online applications have been reserved for our consumer products, but this experience has taught us our commercial customers welcome this same level of online convenience,” shared Valley National Bank EVP and Chief Financial Services Officer Rick Kraemer.

“With Numerated, we’re pre-filling upwards of 75 percent of PPP loan applications with data we already know about our commercial clients. Not only has Numerated simplified complex PPP eligibility into user-friendly logic, it’s also provided an additional level of quality assurance to applications, allowing us to use less than a quarter of the internal resources compared to earlier rounds of PPP,” said Kraemer. “We look forward to extending this digital convenience to more commercial banking products in the future.”

Numerated’s platform uses data to make loan origination and account onboarding easy for more than 130 banks and credit unions and their commercial clients. For the complex PPP lending and Forgiveness processes, Numerated’s digital application and digital lending solutions reduce the time it takes to process PPP loans from on average 15 hours, to less than two.

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“Commercial banking just had its Amazon moment,” said Dan O’Malley, co-founder and CEO of Numerated. “We saw financial institutions turn our self-service borrowing interface on when the PPP reopened, and then watched in disbelief as thousands of businesses applied for loans without their staff having to rekey applications or walk them through the program’s complexity. These busy business owners will never go back to the painful paper process and long waiting times that come along with traditional commercial loan decisions.”

Community and regional lenders have already taken more than 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 prior rounds of the program. 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 combined $84 billion in assets, has used Numerated since last April for PPP lending and Forgiveness.

“We couldn’t be more impressed by Numerated’s technology, team, and responsiveness throughout the PPP,” said Courtney Taylor, SVP of business banking at First Horizon. “With their platform, we’ve saved thousands of hours for our internal teams, and made this experience as simple as possible for our business clients. We’re expanding our partnership with Numerated following our merger with IBERIABANK, including to ensure our clients benefit from a consistent and efficient borrowing experience.”

In addition to PPP loans, lenders use Numerated to originate a wide range of business and commercial banking products, including traditional business term loans, lines of credit, credit cards, SBA loans, commercial real estate loans, deposit accounts, and more. The Numerated platform differentiates from commercial loan origination systems in its use of data and application programming interfaces (APIs) to create efficiency and digital convenience.

“The lenders we’re working with are coming out of this pandemic with a competitive advantage,” said O’Malley. “They don’t need to create a new digital bank to offer digital convenience. In a matter of days, tens of thousands of financial institution employees and their commercial clients benefited from digital lending. And they’re going to expect these great customer experiences and efficiencies across more of their commercial products.”

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