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Thursday, July 18, 2019

Automating the Digital Loan Application with 3 Fields in 15 Seconds


Ever try to fill out 38 fields on your cell phone?  Hardly a superior customer experience.

That is why our digital loan application just needs three fields vs the 38 on the typical digital loan application today.  We automate the application with checking information and identity documentation with your FI or through account aggregation.  Simpler for the customer, and far more efficient for you.



With an application completed in about 15 seconds, we allow you to set the underwriting and provide a loan offer in another 15 seconds, and fully book the loan with documentation and e-sign in about three minutes.  Or of course all adverse action and customer contact are automated, while second review and internal CRM contacts are enabled for your management.

That is why other digital sites say, “Let’s Get Started.”  We say that you respond in seconds and, “Lets Get Finished!”




Sunday, July 7, 2019

CFPB Fair Lending Report Shows No Appetite for Attacking FinTech



Two reports in June clarify that FinTech lending can expect no arbitrary “fair lending” challenges in next few years.  On June 28, 2019 the CFPB released its Annual Report to Congress on Fair Lending.  This followed a June 10 letter some congress members wrote to the regulatory bodies expressing concern about FinTech fair lending,  Legal review of the letter from congress members found no material challenge as quoted below, and the CFPB report documents that there were no fair-lending enforcement actions in 2018.

“the study cited by the congress members fails to factor in the complex differences in a borrower’s credit history, and that “disparate impact” challenges would likely fail in any court.”

RCGILTNER Services, Inc. provides off-the-shelf digital lending technology to financial institutions to automate lending using FI-controlled underwriting decision rules that mirror loan officer decisions.  The digital lending underwriting is not a "model" as defined by FRB SR-17 or subject to MRM regulatory governance.   We see and expect no regulatory challenges to the significant expansion of digital lending services to better serve consumers and small business, or the great efficiencies FIs experience providing loans digitally.

For more detail, the CFPB Fair Lending report states, “The Bureau’s supervisory and enforcement activity in 2018 focused on mortgage lending, small business lending, and student loan servicing. In 2018, Fair Lending used a number of tools and increased its focus on ensuring fair, equitable, and nondiscriminatory access to credit through: (1) hosting a symposium on credit invisibility; (2) establishing collaboration with the new Office of Innovation; (3) monitoring a No-Action Letter; and (4) prioritizing supervisory reviews of third-party credit scoring models to further the Bureau’s interest in identifying potential benefits and risks associated with the use of alternative data and modeling techniques.” 

The letter from congressional leaders Doug Jones and Elizabeth Warren raised concerns that FinTech companies may create fair-lending concerns with their underwriting methods.  Their letter acknowledges “…fintech products have the potential to expand access to financial products,” but they site a new study that suggests fintech lending could include discrimination.  The study they report in a letter to the CFPB focused on mortgage lending and, in fact, alleges that both face-to-face lending and fintech lending resulted in some minority groups they identify paying higher rates on mortgages.  They state in their letter to the CFPB, “…fintech lenders are as discriminatory as loan officers,” although they allowed results were mixed.  They clearly not only think Fintech lending could be discriminatory but believe an existing refrain that loan officers are as well, despite no fair lending actions in 2018.

Legal and regulatory analysts state any federal legislation is unlikely according legal reviews.  These reviews point out the study cited by the congress members fails to factor in the complex differences in a borrower’s credit history, and that “disparate impact” challenges would likely fail in any court.

Wednesday, May 29, 2019

Forbes: PayPal $10B in Small Business Loans as Banks Sit On Digital Sidelines


Forbes reports today that “With banks sitting on the digital lending sidelines, Fintechs have stepped up.”  A great example they show is PayPal which has reached $10B in small business loans five years after it made its first loan.


But some banks are acting and leading the way, from $13B United Community Bank to $400 MM HomeBank.  They provide business loans in minutes on a smart device with their sound underwriting, branding, compliance and control with off-the-shelf MinuteLender® technology provided by RCGILTNER.

Learn more at www.rcgiltner.com.




Monday, May 20, 2019

OD Results Differ Greatly by Compliant Bank Strategy


Regulation changes have occurred and some FIs have responded with compliant, customer-driven overdraft services, while other FI have avoided re-thinking their overdraft services after Reg E.  The result, according to banks reporting overdraft revenues to the FDIC, is that the median OD revenue growth for the top half of banks was +16% from 2016 to 2018, while the lower half saw revenues fall -10% during the same time period.

Source: FDIC - Banks Over $1B

Why?  Compliant, customer-driven services with new efficiencies are available today for implementation to meet customer needs. New digital technology enhances services and efficiencies and enables profitable overdraft alternatives. 

But FIs must understand their customer needs and use sound methods and compliance to meet them.  As the chart above shows, those that do focus on customer needs can see significant annual revenue improvement, while those that do not re-assess their overdraft services lag in both revenue and customer service.

To get our Whitepaper, "2019 Overdraft Best Practices," or start a free assessment of your compliant, customer-driven overdraft services, contact us or visit www.rcgiltner.com

Saturday, April 27, 2019

Forbes: Banks “Missing the Boat” in Digital Small Business Lending


Very few small or large banks accept small business loan applications online” or have automated small business lending processes, Forbes magazine reports after review of the FDIC’s Small Business Survey.  Yet small business heavily use online lending channels.




It is time your bank steps up its game to compete.  FIs don’t make money on small business loans under $100k, over half of all small business loans, with today’s processes, but they can with digital technology and delivery.  We provide off-the-shelf technology to fully make small business in minutes all under your underwriting, your brand, your compliance and your control for loans and relationships on your balance sheet.

See why others from $13B United Community Bank to $300 million HomeBank are using our MinuteLender® technology at www.rcgiltner.com
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Thursday, April 25, 2019

MinuteLender® Provides Spending Analysis Instantly For New Customer Loan Application


How is your new loan applicant spending their money?  Do they have deductions for risky loans, payday loans, or garnishments.  Is that small business applicant stacking up loans?  MinuteLender® for consumers and small business loans provides analysis by spending and payment category automatically in seconds through account aggregation from a new applicant’s current bank.



It is all part of automated loan application and decisioning in a minute.  All documents can be executed in the same process and funds in the account as fast as the customer wants.  Adverse actions are also handled digitally and compliantly.  Detailed transaction data like above is provided for your files electronically just as you have credit reports.  For more information, visit www.rcgiltner.com.





Wednesday, April 17, 2019

FIs Need to Respond as One-Third of Small Businesses Apply to Online Lenders


One third of small businesses now apply to online lenders like Kabbage or OnDeck according to the FED Survey reported in the American Banker today. 


It is time your bank steps up its game to compete.  FIs don’t make money on small business loans under $50k, nearly half of all small business loans, with today’s processes, but they can with digital technology and delivery.  We provide off-the-shelf technology to fully make small business in minutes all under your underwriting, your brand, your compliance and your control for loans and relationships on your balance sheet.

See why others from $300 million HomeBank to $13B United Community Bank are using our MinuteLender® technology at www.rcgiltner.com.