Digital lending with cloud-based technology became available about 2012 as the IBM chart below shows, and that is when our firm built its technology with Microsoft Azure.
Lending to small business and consumers had been simplified years earlier by many banks with sound credit report underwriting, but it was a manual and paper process with high costs. Cloud technology, a logical extension of the use of data bases and Wide Area Network technology (WAN) as shown above, became commercial available by 2012. This allowed vendors like us to build on-demand, paperless systems for ubiquitous customer access with complete security using no customer-identifying information, and with automated, low cost, and scale-able deployment.
Data security can be assured by using proxy information in the cloud and having no critical customer identifying information such as account numbers of Tax ID numbers outside your firewall. All data security and authentication compliance is provided with SSAE16 and SOC2/Type2 documentation, but your greatest comfort will be that even if any compromise occurs, no critical customer identifying information is in the cloud.
Financial institutions have long struggled with profitably and efficiently serving small business and consumer loans under $50k because of underwriting, processing and customer servicing costs. As a result, community and regional banks have less than 10% of the lending in this market segment despite its large size, and the existing checking relationships banks have with this market. Non-bank digital lenders were first to jump in this space, but banks have inherent advantages of customer relationships, trust and compliant lending processes. Automating through the cloud with our MinuteLender platform allows full online and mobile access for self-service, or retail selling with no lending knowledge, with sound underwriting to drive efficiency and new revenue.