How Advanced Credit Decisioning Tools Help Lenders Beat Fintechs at Their Own Game

Advanced decisioning tools are helping lenders innovate existing underwriting models and power growth — without compromising their institutional underwriting requirements.

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By 
Jon Fry
 | 
 | 
April 8, 2022

In today’s marketplace, banks and other financial institutions face mounting competition from non-traditional lenders. Fintech companies, neo-banks, and other innovative lenders are now offering more streamlined product experiences that allow qualified borrowers to get access to credit in a fraction of the time, and SMB customers are taking notice

To compete in this modern landscape, banks need more sophisticated credit decisioning tools. Lendflow’s advanced credit decisioning engine can help banks keep pace by improving efficiencies and speeding up underwriting processes to enable quicker processing and approval times 

Accessing more efficient risk assessment tools means achieving better results. And by giving more high-quality capital offerings to qualified borrowers, banks improve loan/deposit ratios too.

How Lendflow is Transforming the Lending Landscape 

While many SMBs struggle to find the right loan in a timely manner, banks equally face new pressures to meet loan/deposit requirements. Given the influx of deposits that banks have seen since the start of the pandemic, the need to identify qualified borrowers has only grown. 

At this point, an acceptable loan/deposit ratio rests on having a client base of qualified customers — which means high-intent, qualified SMB borrowers. But these borrowers are hard to come by — even more so when banks possess incomplete data profiles on each applicant and inefficient decisioning tools to effectively evaluate risk. 

That’s where advanced credit decisioning comes in. Lendflow’s automated credit decisioning engine uses holistic data profiles to help lenders make faster and more efficient credit decisions. Fintech firms are already on the automated decisioning train, and as a lender, you’ll need to upgrade your underwriting process if you want to keep up with the growing demand for faster loans and easier application processes.

Automated credit decisioning doesn’t just place capital in the hands of SMBs that much quicker — it speeds up underwriting times, enhances underwriting efficiency for lenders, significantly reduces processing costs, and drives growth. Automated credit decisioning is designed to decrease the inefficiencies and knowledge gaps baked into manual reviews and the traditional underwriting processes. 

All too often, qualified SMBs fail to get approved when applying for loans from banks because they might not look good “on paper.” Sometimes this is due to a lack of pristine records — whether it be cash flow statements, credit scores, etc. With intelligent data profiles and superior risk assessment tools, Lendflow’s automated decisioning engine means lenders can finally tap into this vast and profitable SMB market that often falls through the cracks of existing underwriting processes. 

Advanced Credit Decisioning with Lendflow 

An embedded lending platform like Lendflow uses advanced credit decisioning tools to streamline the loan approval process. With automated workflows, you can finally optimize underwriting capacity without sacrificing accuracy.

Here’s how it works. 

High-intent SMB borrowers need loans fast (think seasonal businesses or new businesses with upfront overhead costs), but they might not have sufficient credit data to get a loan approved using traditional credit decisioning tools. Lendflow gathers hundreds of data points on any prospective SMB borrower based on real-time payroll data, cash flow data, and more credit data. In addition, lenders who use Lendflow can layer in other metrics collected through their own product to complete applicants’ profiles.

Lendflow’s decisioning workflows drive value across every stage of underwriting, combining maximum accuracy with optimal efficiency by allowing lenders to automate the decisioning process. Lenders benefit in various ways, and can: 

  • Access the full breadth of data — with a single API, under a single contract — from dozens of data providers. 
  • Drag-and-drop each data set in the order that matches your underwriting requirements. Select only the most relevant data for each SMB application to optimize your decisioning and minimize costs with customized workflows.
  • Remove the manual work by setting specific parameters and using conditional arguments to automatically generate pass/fail decisions. Establish decisioning workflows with fully customizable templates.

Automated decisioning with Lendflow allows you to create a nested order for your workflow. So, if an SMB passes a certain step of your approval process, it will automatically move on to the next step in the review. If an applicant fails that step, you can automatically terminate the credit check without running unneeded, further checks on other data sets. By minimizing manual reviews and no longer paying for unnecessary data sets, smart data orchestration reduces manual error and saves on costs within the underwriting process.

Invest in the Future of Lending 

Advanced credit decisioning tools compile all data necessary for effective underwriting in one place, under one contract. You can approve qualified borrowers faster, retain happy customers, and free up resources from manual reviews. 

Needless to say, better risk assessment is a great way for lenders to stay ahead of the curve in today’s tech-based lending environment. With Lendflow, your underwriting team can significantly decrease manual reviews, while still maintaining complete control over your underwriting requirements and risk thresholds.

If you’re interested in learning more about how Lendflow can propel your lending operations forward, let’s talk. Intelligent credit decisioning is right around the corner.

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