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Wednesday, September 30, 2015

Our Bank Digital Lending Exceeds All Treasury Regulatory or Compliance Concerns

The Treasury Department inquiry into alternative lenders and non-banks providing marketplace and digital lending completes its comment period today, September 30.  St. Louis Fed Governor Lael Brainard has noted online lending risks to banks, Forbes magazine provides an excellent Guide to The Issues of the Treasury’s Inquiry.

The good news is that our client banks have already been through multiple Compliance and Safety and Soundness exams.  Financial institutions that provide our digital lending technology platforms already meet or exceed any and all of the concerns the Treasury Department has about non-bank and alternative lenders.  Unlike most online and alternative lenders, our platform is "in-house" for the bank where you set and control the underwriting, pricing, delivery and monitoring.  We simply provide the fully secure cloud-based and technological systems to allow you to fully automate your processes to consummate loans with sound underwriting in minutes with no paper generated.

The chart below provides a summary of the issues as documented in the Forbes article about most online lenders, and how our financial institution digital lending meets or exceeds all these concerns with your disclosures, your pricing and your servicing..

 Treasury Inquiry Into Alternative Lending

Digital lending technology, like MinuteLender, allows financial institutions to efficiently serve and grow revenue from the 80% of their small business checking customers who have no business loan with the financial institution but have loans from elsewhere.  Lending to this group of loans under $50k, which are 40% of all loans and average $12k, have not been profitable in the past for financial institutions, but digital technology available since 2012 provides efficient, profitable delivery, risk rating and monitoring for just a few hundred dollars. And most importantly, the digital lending technology for financial institutions meets all compliance, regulatory and sound lending practices.

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