FinMkt: One-time Integration for Multiple Partnerships

Luan Cox, President & CEO, FinMktLuan Cox, President & CEO
The banking and finance industries have changed significantly over the past few years. With the introduction of online lending paradigms, small- and mid-sized lenders have found the need to come online quickly and provide lending services that allow them to compete with large banks and online marketplace lenders. In the recent years, banks have been entering into referral partnerships with start-up financial technology companies, in an effort to service customers to whom they cannot provide a loan. “However integration between banks and partners, from a technology perspective, doesn’t typically happen as it takes two to three years and massive resources to complete the integration,” explains Luan Cox, President and CEO, FinMkt.

In response to this challenge, FinMkt has developed the Gateway platform to provide lending banks with real-time online consumer loan pre-approvals from a network of lenders of the bank’s choice. “Our model is based on an ‘integrate once, partner with many’ approach,” Cox says. The Gateway platform acts as a central hub, where banks and lenders can plug in and work together, through a one-time integration. The platform provides for a white-label loan application built by FinMkt and is highly customizable to suit the specific needs of each client.

FinMkt has also developed FM Portfolio, a sophisticated asset management application that allows banks and institutional investors to manage the incredible amount of loan-level data produced by their respective lending partners. Loan origination and performance data is captured via API integrations, with many leading online lending platforms. The data is aggregated and normalized to intuitively display portfolio characteristics and performance data for investors to manage their portfolio of loans.

Gateway delivers real-time, pre-approval consumer loan offers from leading online lenders to our partners

Gateway and FM Portfolio make what would otherwise be cost-prohibitive data collection, aggregation, and output activities efficient on a large scale—a scale that makes them commercially feasible. These platforms benefit both the borrower and the lender. The borrower now has the ability to see the lenders that are willing to lend to them and the terms offered by each lender. This helps them avoid a product that does not suit them.

The lender is better equipped to recuperate their direct mail marketing investment by monetizing applicants to whom they cannot lend. When a loan application comes in, the lender can do a soft-pull of credit and obtain pre-approvals from a number of potential lenders. For instance, one of FinMkt’s customers, a prime lender faced difficulty striking partnerships for referrals, as most banks were also only interested in prime borrowers and they wanted to offer loans to all borrower types. FinMkt provided them with the third-party lending management capability that they needed. This customer could tell potential partners, “We will be the prime lender, but if you want other lenders, we have a partnership with FinMkt and together with them, we can accommodate other lenders across the credit spectrum.”

What is it that sets FinMkt apart? In the words of Cox, “We are always thinking two steps ahead of others in our space.” FinMkt invented the concept of a B2B multi-lender platform that is customizable and built for global financial institutions. They bring to this development, a team that has deep experience in designing, building, and managing web-based financial applications for the largest financial institutions in the world. FinMkt is currently working with a global data provider partner to create pricing and reference data sets for this new world of fixed income investing and online lending. In the near future, they plan to extend their technology into other applications and product verticals, including insurance, auto, and ultimately residential mortgages.