OnDeck Launches Subsidiary to Help Banks with Small Business Lending

Online small business lending platform OnDeck has always served as an alternative to traditional banks. This week, however, the company has made a new move to further its bank-fintech ties. The New York-based company announced the launch of a new subsidiary aimed to help banks serve small businesses.

Dubbed ODX, the new platform-as-a-service entity is an extension of OnDeck’s platform services and will focus entirely on helping banks digitize their small business lending efforts via a combination of software, analytic insights, and professional services.

ODX is as much about helping banks reach small business clients as it is about helping small businesses interact with their bank. The new subsidiary recognizes the hassle that comes with applying for a loan at a traditional bank, many of which still rely on labor-intensive, paper-based processes that take an average of 26 hours over the course of several weeks to complete. In comparison, banks leveraging ODX can offer a fully-digital application and underwriting process that provides the business with funding within 24 hours.

In a statement, OnDeck CEO Noah Breslow said, “ODX is the next generation service provider for the digital lending era, delivering a bank-ready origination platform, analytic support, and implementation services that speed product and process transformation to help banks better meet the evolving needs of their customers.”

Brian Geary, who formerly served as VP of OnDeck’s bank partnership unit, has been appointed to president of ODX. The company hired on Raj Kolluri, former VP of  Product & Engineering at SS&C Primatics, as head of product and technology for ODX.

Founded in 2007, OnDeck has loaned more than $10 billion to small businesses in 700 different industries across the United States, Canada, and Australia since launch. The company, which demoed at FinovateSpring 2012,  leverages its OnDeck Score that uses advanced analytics to make real-time lending decisions and deliver funds to small businesses in as little as 24 hours. Earlier this year, OnDeck closed a pair of revolving credit facilities totaling $93 million.

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  • OnDeck Launches Subsidiary to Help Banks with Small Business Lending.

Around the web

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This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

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  • Dynamics’ Battery-Powered Cards Hit Japan.
  • Q2 to Acquire Cloud Lending Solutions.
  • Onfido Helps TransferGo Onboard New Users Faster.

Around the web

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This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

OnDeck Scores $93 Million in Two Credit Facilities

Online small business lender OnDeck closed a pair of revolving credit facilities this week. The $93 million in asset-backed funds come from Credit Suisse, which contributed $55 million (AUD 75 million) to go to small businesses in Australia, and Crédit Agricole, which contributed $38 million (CAD50 million) for small business loans to Canadians.

“Securing cost-effective facilities that provide committed funding to support the loan growth of our international businesses reflects another step forward in the execution of our financing strategy,” said Ken Brause, Chief Financial Officer at OnDeck. “These two transactions provide additional capacity to support small businesses in Australia and Canada and help them to achieve their goals.”

OnDeck will use the Credit Suisse facility to refinance its loan book at a lower rate and to fund future small business loan originations. OnDeck will service the loans, which it will extend to OnDeck Australia and OnDeck Canada subsidiaries. The funds are expected to promote small business growth in Australia and Canada by burgeoning the amount of working capital available.

Both loans carry an initial weighted average interest rate of 5.6%. The Credit Suisse loan will mature in June 2020 while Crédit Agricole’s matures in June 2021. These credit facilities make a total of four funding events that the New York-based company has received this year, following a $100 million revolving credit facility and a $225 million securitization, both received in April.

Founded in 2007, OnDeck leverages its OnDeck Score that uses advanced analytics to make real-time lending decisions and deliver funds to small businesses in as little as 24 hours. Since launch, the company has deployed $8+ billion to customers in 700 different industries across the United States, Canada, and Australia. OnDeck demoed at FinovateSpring 2012 and gave a presentation at our developers conference, FinDEVr New York 2016.

Finovate Alumni News

On Finovate.com

  • OnDeck Scores $93 Million in Two Credit Facilities.
  • P2Binvestor Teams Up with Amalgamated Bank to Help SMEs Get Funded.
  • The ID Co. Unveils Open Banking API Platform.

Around the web

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This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

Finovate Alumni News

Around the web

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This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

Finovate Alumni News

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  • SecuredTouch Receives $8 Million Strategic Investment from Arvato Financial Solutions.
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Around the web

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This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

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  • Nordic Capital Fund Acquires Majority Share of Trustly.

Around the web

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This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

KPMG, H2 Ventures Unveil Fintech 100 for 2017

It’s that time of the year once again: KPMG and H2 Ventures have teamed up to introduce their Leading Global Fintech Innovators roster, the Fintech 100 for 2017. The judges for this year’s Fintech 100 included more than 20 professionals from KPMG and other organizations with expertise in IT, data analytics, capital markets, financial services, and more.

This year 11 Finovate/FinDEVr alums made the Leading 50, with another 12 alums making the Emerging 50. New entrants to the KPMG/H2 Ventures roster include SoFi and Revolut among the Leading 50. All 12 the alums on the Emerging 50 are making their first appearance. See the full list.

Some of the highlights from the 2017 Fintech 100 include the observation that five of the roster’s top 10 companies are from China, as are the top three companies on the list: Ant Financial, ZhongAn, and Qudian (Qufenqi). The U.S. has a pair of companies in the top five: Oscar and Avant, and Europe and the U.K. each have one company in the top ten: Kreditech and Atom Bank, respectively.

Speaking of Asia, the Asia-Pacific region has 30 fintech companies in the top 100. The United States has 19 companies – the most from any single country – and the U.K. and EMEA areas have 41 companies in the list. The U.K. and EMEA region are also responsible for the highest number of companies on KPMG/H2 Ventures’ Emerging 50 list with 26.

With regard to sectors within fintech, the Fintech 100 breaks down as follows:

  • 32 lending companies
  • 21 payments companies
  • 14 transaction and capital markets companies
  • 12 insurance/insurtech companies
  • 7 wealth management/wealthtech companies
  • 6 cybersecurity/regtech companies
  • 4 blockchain/digital currency companies
  • 3 data and analytics companies

Alums from the Leading 50

Alums from the Emerging Stars

Finovate Alumni News

On Finovate.com

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Around the web

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This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.