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.