Credit unions have become an important source of financing for small businesses during the recession and recovery. However, proposed changes to the tax code and anti-credit union voices could be putting credit unions’ ability to lend to small businesses at risk.
BBC Easy automates the C & I loan financial reporting process by securely extracting financial data from customer accounting systems to help banks calculate the amount of a Borrowing Bank Certificate (a document used in asset-based loan transactions) based on the customer’s current financials and the bank’s lending parameters.
Finagraph, a provider of best-in-class automated financial intelligence tools and data verification to financial institutions, announced today the company has forged a partnership with the renowned Relationship Banking Academy (RBA) to educate tomorrow’s bankers on key financial technology tools to aid in forging long-lasting client relationships. Kyle Enger, CEO of RBA, is an esteemed expert in the field of relationship banking who regularly teaches at top business schools including the Pacific Coast Banking School, Graduate School of Banking at Colorado and Graduate School of Banking at LSU.
Financial technology provider BBC Easy announced today that the company has formally rebranded under the new name Finagraph and is expanding the vision for its core product. The company announced its new website will be located at http://www.finagraph.com. This shift is in line with the expanded goals for Finagraph’s innovative, proprietary software—which connects businesses, their bankers, or investors securely through the cloud—to include a host of financial intelligence tools that allow for on-the-spot review of a company’s complete financial health.
Cloud-based lending solutions can deliver improved transparency and customer experience in the lending process to help small institutions grow their lending business.
The popularity of credit unions continues to increase - with credit card loans, mortgages and deposit accounts increasing more rapidly than those at commercial banks. Credit union membership hit 93 million in 2012, according to the Credit Union National Association.
In the past year, commercial and industrial (C&I) lending to small- to mid-sized businesses has been on the rise. In a January 2013 survey on bank lending practices, the Federal Reserve wrote that “lending standards on commercial and industrial loans had been eased over the past three months…In addition, moderate net fractions of domestic banks reported that demand for C&I loans from firms had increased over the survey period.”
In 2012 alone, 2,267 bank branches shut their doors in the U.S. In the face of record-low interest rates and changing customer preferences for online banking, banks, particularly smaller ones, are at a crossroads. While many want to reduce operating costs, customer demands for increased online and mobile access is a costly prospect for many small- to mid-sized banks.
Seattle-based BBC Easy (powered by Finagraph) provides automated borrowing base certificates for small and medium sized businesses. With asset-based lending and cash-flow lending becoming increasingly popular for small business, founders James Walter and Corey Ross discuss alternative financing strategies for small business.
BBC Easy founders James Walter and Corey Ross talk about what BBC Easy is doing to streamline the process for banks and other lenders to make it easier to lend capital to small business owners. The money supply may be easing up, but the challenge for lenders is the cost of the manual processes lenders are strapped with to process small business loans.
In today’s competitive C&I lending market, banks are looking for ways to offer services more quickly and cheaply as well as improve their profit margins. By using automation tools, banks can improve business process efficiencies and offer more loans and better customer service to small businesses in need of capital. Financial institutions are increasingly turning to customer-facing software programs to automate the lending process. If a small business owner has ever used popular apps like Xpense Tracker or Evernote, the same intuitive interfaces are now available specifically for commercial accounts.