By Lisa Walls-Hester on Thursday 19 January 2017
The London-based financial services software company has launched a new white label crowdlending module which will allow retail and corporate banks the opportunity to seize back their share of the $490bn global crowdlending market.
Misys FusionBanking CrowdLending supports banks in delivering funding to all customers, from the individual to SMEs and large corporations. It opens the door for banks to claim a stake in the accelerating global loan origination market, which according to Morgan Stanley could command almost half a trillion dollars globally by 2020.
The company says it is already in discussions with a number of interested banks in the US, Europe, and India.
Simon Paris, President at Misys, said “Alternative finance has made its mark. Overall loan volumes are on the up, but a growing and increasingly relevant slice of the market is now being processed by independent P2P providers.”
“With traditional lending vehicles also under pressure from marketplace lenders, banks risk missing out. Our approach enables banks to capture more of the opportunities in this market, and to de-risk, disrupt and quickly grow in this competitive space.”
FusionBanking CrowdLending provides a fully integrated, white-label platform which enables banks to bring lenders, including individuals, asset managers and banks, together with borrowers of all sizes, innovating and digitalising traditional lending.
James O'Neill, Senior Analyst for Banking at Celent said, “A key limitation to the long-term growth of the marketplace lending sector is the lack of industry standards across the various platforms competing in the market, and as a result, important metrics like credit quality and collection policies are not uniformly administered across competitors. “
“FusionBanking CrowdLending is thus a welcome addition to the marketplace lending scene as it allows traditional banks to contribute their expertise in credit management to borrowers and lenders alike.”
For borrowers, FusionBanking CrowdLending provides easy access to alternative funding through a trusted bank platform, with no additional sign up processes required. In-house processing affords cost efficiencies which deliver borrowers competitive rates.
Users benefit from their bank’s customer network of lenders and investors, for fast loan origination.
Investors benefit from established credit risk processes and bank infrastructure, to minimise potential risk.