Recently at its Connect Forum in Paris, Misys launched its new crowdlending module. Misys FusionBanking CrowdLending supports retail and corporate banks in delivering funding to all customers, from the individual to SMEs and large corporations.
According to the financial software services firm, the new offering opens the door for banks to claim a stake in the accelerating global loan origination market, which could command almost half a trillion dollars globally by 2020.
“Alternative finance has made its mark,” said Simon Paris, President, Misys. “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. Crowdlending with Misys is a digital leap that banks can make now and it is a leap that could see them play a significant role in boosting SME funding – an area that has been underserved to date.”
FusionBanking CrowdLending, according to Misys, 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.
By embedding crowdlending in the overall credit lifecycle, a bank can maintain and expand its client base, no longer having to turn away those they otherwise wouldn’t fund. At the same time, loans are originated off balance sheet to diversify risk.
Misys highlighted that 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 also 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.