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ENDANGERED SPECIES
The Threat That Could End Community Banking (And What to Do About It)
COMMUNITY BANKING
FINANCIAL INSTITUTIONS
DANGERON ALL SIDES
Small and midsized banks are at tremendous risk Not just at risk of running out of customers and therefore money not just at risk of being bought out by a larger bank
CBFIs are also at risk of losing their core business to the companies innovating in the paytech and lendtech spaces Small business lending is ground zero for this imminent disaster
But the problem is also the solution
Introduction
ARE IN
On the surface things are going well for community and regional banks and credit unions
Though only in charge of a small percentage of total assets theyrsquore disproportionately dominating small business lending
In 2018 community-based financial institutions made 52 of all small business loans even though they controlled only 16 of banking assets
Community-based financial institutions make 52 of all small business loans
They only control 16 of banking assets
52
16
Source Institute for Local Self-Reliance
Endangered Species The Threat to Community Banking | Biz2Xcom | 3
Well if yoursquore part of a community-based
financial institution (CBFI) you probably
already know that where your bank truly excels
is in offering customers significantly more time
per transaction than other larger financial
institutions can
Business and personal checking and savings
merchant services and the portfolio of lending
services all run more smoothly with this
personal attention
By investing time in each customer transaction
CBFIs are able to truly get to know their
borrowers and learn about their businesses and
needs while co-existing with them in the same
market
How did this happen
Sharing a community with their customers
means that CBFIs are privy to all kinds of info
about customer behavior ndash some explicit some
environmental ndash and can then turn that data
and market knowledge into products and
services that their customers need All while
providing a personal touch This becomes a
virtuous cycle
Itrsquos been CBFIsrsquo secret weapon Until now
Because that secret weapon is in danger
Small business lending opportunities are
experiencing a drastic shift And the industry
changes are deep and permanent
Endangered Species The Threat to Community Banking | Biz2Xcom | 4
The extinction of community banks Lending as battleground
Part 1 The Problem for Community Banks
CBFIs have always been at risk ndash whether itrsquos from getting bought out by a larger bank or from simply running out of customers (and therefore money)
Now CBFIs are also at risk of losing their core business to the companies innovating in the paytech and lendtech spaces
Lending especially small business lending is ground zero for this imminent disaster
Endangered Species The Threat to Community Banking | Biz2Xcom | 6
PayPal and Square now lend to their merchant
customers seamlessly integrating small
business loans ndash and loan satisfaction ndash with
their pre-existing POS systems credit card
processing and other offerings
The logic goes if payment companies can lend
faster and better than a bank can merchants
are already using payment companies for
other services and as payment companies
add lending to those services then the nexus
of capital acquisition moves from traditional
lenders to payment companies
These payment upstarts have the additional
advantage of using the first-party customer
data that they already have access to Many of
these new lenders are willing to use alternative
data ndash like purchasing patterns geolocation
etc ndash to evaluate risk which leads to faster
underwriting
Which leads the merchant to have more incentive to borrow Which is a total end-run around banks All banks large and small
Endangered Species The Threat to Community Banking | Biz2Xcom | 7
And the smaller the bank is the bigger of an
issue this can be Customer loyalty is vital to
CBFIs But the way that theyrsquove won loyalty in
the past is now under threat A big CBFI selling
point is offering speedier funding to make up
for not being able to offer more competitive
rates When all types of lenders can offer fast
funding CBFIs need to innovate or risk being
pushed aside
Customers switch banks for any number
of reasons bad customer service products
that donrsquot suit their needs inflexible or
unsatisfactory problem solving difficult-to-
use apps and tools difficult access to financial
advice difficult access to credit
A good fintech platform can stop all of these problems before they start After all if a bankrsquos small business customers are going to Square for lending since theyrsquore already there for POS anyway that bank is in trouble
How bad is this risk For many banks and
CBFIs itrsquos a danger thatrsquos lurking just below the
surface
Endangered Species The Threat to Community Banking | Biz2Xcom | 8
Therersquos one simple problem thatrsquos setting up CBFIs for certain death The combination of lag time and imprecision
TOTAL NUMBER OF HOURS
Herersquos how long a manual loan origination process might take
Letrsquos look at the underwriting process
12
1 work-hour
Create new customer file and related activities
3 work-hours
Conduct customer due diligence
3 work-hours
Conduct underwriting
3 work-hours
Review for final approval
1 work-hour
Prepare loan package
1 work-hour
Fund loan
These hours arenrsquot necessarilycontiguous loan origination involves much
back-and-forth among colleagues
Now think about the overheadLabor costs The cost of capital itself
Loan officerrsquos salary $80000year
$330day
30 ($110) benefits
30 overhead
$660 per loan
Time cost
approximately 12 work-hours per loan
or 15 days per loan of work time ndash
turns into 7-10 days of real time(with delays in customer response other priorities etc)
$660 $660000X 1000
=
=
+
+
Endangered Species The Threat to Community Banking | Biz2Xcom | 9
we build out a 1-week maxi-mal campaign with a budget of $25k
Thatrsquos significant risk Particularly because analog underwriting isnrsquot just long and drawn out It also leaves CBFIs vulnerable to human error
Think about how many hands touch just one loan from application to funding Think about how many times someone from one department has to chase down information from someone in another department
There are a lot of cooks in this kitchen How many are in yours
Now take that dollar amount and weigh it against potential loss of business due to frustrated customers and negative online reviews Thatrsquos the bad news
The good news is that incorporating digital decisioning into the lending process can significantly reduce exposure ndash and save money in the process
And therersquos a way for every bank to do this
Endangered Species The Threat to Community Banking | Biz2Xcom | 10
The right fintech can save community lending
Imagine a third-party platform that simplifies small business lending functions with up-front KYC validation straight-through processing and other time savers
Think about what it would be like with a built-in proprietary risk assessment algorithm And now consider how much more secure and powerful this could make your lending
Herersquos the solution
Part 2 The Solution
It can seamlessly integrate with lendersrsquo core banking systems to solve these very pain points Configured to your specific credit policy the platform saves you time money and reputation by automating your loan decisions In addition to letting customers upload their own financial information it can also access third-party data like bank accounts credit bureaus and IRS information
This platform exists today Biz2XPart of the configuration process involves setting parameters around managing specific concerns like
bull BSAAML compliance (OFAC screening and other CIP tasks)bull Debt service coverage ratios and other financial ratiosbull Collateralbull HMDACRA reportable information Paired with the proprietary Biz2X algorithm you can easily see where a deal might fall out of credit or compliance
Also itrsquos easy to get started
Endangered Species The Threat to Community Banking | Biz2Xcom | 12
What this all means is
You can decision a loan instantly ndash in a matter of moments instead of months
Endangered Species The Threat to Community Banking | Biz2Xcom | 13
New customer file
Duediligence
Underwriting
Review
Prepare loan package
Fund loan
ManualProcess
Originating a Commercial Loan
DigitalProcess
New customer file
Automatic underwriting
analysis
Underwriting review amp approval
Fund loan
Endangered Species The Threat to Community Banking | Biz2Xcom | 14
ldquoItrsquos a streamlined process The system is intelligent and depending on the type of loan that the customer is applying for it will tell them what type of documentation is required It provides the customer the user with flexibility They can actually start the application from home or from the business and they can complete the application there or they can finish the application by coming to one of our branches ldquo
ldquoFive years ago everything was going through traditional underwriting which is very expensive
As application volume increased we wanted to get something that was a little more efficient [With Biz2X] we can turn around an application in a number of hours Not weeks or monthsldquo
ndash Manuel Chinea COOPopular Bank
ndash Scott Green Senior VP amp Credit Manager Customers Bank
Endangered Species The Threat to Community Banking | Biz2Xcom | 15
What happens after a bank incorporates digital decisioning tools
ldquoHuman beings and machines will always produce better results together than either will alonerdquo
ndash Ash Gupta Biz2X Advisor and former Chief Risk Officer of American Express
Part 3 Making Change Work
Integrating new products and processes is always a large complex project with many moving parts For the first 90 days the work is to align all internal stakeholders ndash from Engineering to Marketing The goal is to make sure that every customer touchpoint is seamless
If a customer starts filling out a loan application online at home one evening puts it down and then walks into their bank branch the next day they should be able pick up where they leave off
Change management support can make a digital transition go smoothly
Itrsquos an excellent idea to engage a professional consultant experienced in shepherding organizations through the dynamics that happen with these kinds of shifts
Endangered Species The Threat to Community Banking | Biz2Xcom | 17
Post-transition the CBFIrsquos secret weapon becomes magnified exponentially
More customer touchpoints mean more time and opportunities to devote to customer retention as well as space to figure out how best to deploy this new wealth of customer data and freed-up in-house resources
That ldquoget to know you in personrdquo quality ndash paired with a digital + human origination process ndash can become a real sustainable ace in the hole
This kind of CBFI wonrsquot just survive It will thrive
Endangered Species The Threat to Community Banking | Biz2Xcom | 18
Thrive with the AI-drivenlending platform
Learn more atBiz2Xcom
copy Biz2X by Biz2Credit 2019 All rights reserved
COMMUNITY BANKING
FINANCIAL INSTITUTIONS
DANGERON ALL SIDES
Small and midsized banks are at tremendous risk Not just at risk of running out of customers and therefore money not just at risk of being bought out by a larger bank
CBFIs are also at risk of losing their core business to the companies innovating in the paytech and lendtech spaces Small business lending is ground zero for this imminent disaster
But the problem is also the solution
Introduction
ARE IN
On the surface things are going well for community and regional banks and credit unions
Though only in charge of a small percentage of total assets theyrsquore disproportionately dominating small business lending
In 2018 community-based financial institutions made 52 of all small business loans even though they controlled only 16 of banking assets
Community-based financial institutions make 52 of all small business loans
They only control 16 of banking assets
52
16
Source Institute for Local Self-Reliance
Endangered Species The Threat to Community Banking | Biz2Xcom | 3
Well if yoursquore part of a community-based
financial institution (CBFI) you probably
already know that where your bank truly excels
is in offering customers significantly more time
per transaction than other larger financial
institutions can
Business and personal checking and savings
merchant services and the portfolio of lending
services all run more smoothly with this
personal attention
By investing time in each customer transaction
CBFIs are able to truly get to know their
borrowers and learn about their businesses and
needs while co-existing with them in the same
market
How did this happen
Sharing a community with their customers
means that CBFIs are privy to all kinds of info
about customer behavior ndash some explicit some
environmental ndash and can then turn that data
and market knowledge into products and
services that their customers need All while
providing a personal touch This becomes a
virtuous cycle
Itrsquos been CBFIsrsquo secret weapon Until now
Because that secret weapon is in danger
Small business lending opportunities are
experiencing a drastic shift And the industry
changes are deep and permanent
Endangered Species The Threat to Community Banking | Biz2Xcom | 4
The extinction of community banks Lending as battleground
Part 1 The Problem for Community Banks
CBFIs have always been at risk ndash whether itrsquos from getting bought out by a larger bank or from simply running out of customers (and therefore money)
Now CBFIs are also at risk of losing their core business to the companies innovating in the paytech and lendtech spaces
Lending especially small business lending is ground zero for this imminent disaster
Endangered Species The Threat to Community Banking | Biz2Xcom | 6
PayPal and Square now lend to their merchant
customers seamlessly integrating small
business loans ndash and loan satisfaction ndash with
their pre-existing POS systems credit card
processing and other offerings
The logic goes if payment companies can lend
faster and better than a bank can merchants
are already using payment companies for
other services and as payment companies
add lending to those services then the nexus
of capital acquisition moves from traditional
lenders to payment companies
These payment upstarts have the additional
advantage of using the first-party customer
data that they already have access to Many of
these new lenders are willing to use alternative
data ndash like purchasing patterns geolocation
etc ndash to evaluate risk which leads to faster
underwriting
Which leads the merchant to have more incentive to borrow Which is a total end-run around banks All banks large and small
Endangered Species The Threat to Community Banking | Biz2Xcom | 7
And the smaller the bank is the bigger of an
issue this can be Customer loyalty is vital to
CBFIs But the way that theyrsquove won loyalty in
the past is now under threat A big CBFI selling
point is offering speedier funding to make up
for not being able to offer more competitive
rates When all types of lenders can offer fast
funding CBFIs need to innovate or risk being
pushed aside
Customers switch banks for any number
of reasons bad customer service products
that donrsquot suit their needs inflexible or
unsatisfactory problem solving difficult-to-
use apps and tools difficult access to financial
advice difficult access to credit
A good fintech platform can stop all of these problems before they start After all if a bankrsquos small business customers are going to Square for lending since theyrsquore already there for POS anyway that bank is in trouble
How bad is this risk For many banks and
CBFIs itrsquos a danger thatrsquos lurking just below the
surface
Endangered Species The Threat to Community Banking | Biz2Xcom | 8
Therersquos one simple problem thatrsquos setting up CBFIs for certain death The combination of lag time and imprecision
TOTAL NUMBER OF HOURS
Herersquos how long a manual loan origination process might take
Letrsquos look at the underwriting process
12
1 work-hour
Create new customer file and related activities
3 work-hours
Conduct customer due diligence
3 work-hours
Conduct underwriting
3 work-hours
Review for final approval
1 work-hour
Prepare loan package
1 work-hour
Fund loan
These hours arenrsquot necessarilycontiguous loan origination involves much
back-and-forth among colleagues
Now think about the overheadLabor costs The cost of capital itself
Loan officerrsquos salary $80000year
$330day
30 ($110) benefits
30 overhead
$660 per loan
Time cost
approximately 12 work-hours per loan
or 15 days per loan of work time ndash
turns into 7-10 days of real time(with delays in customer response other priorities etc)
$660 $660000X 1000
=
=
+
+
Endangered Species The Threat to Community Banking | Biz2Xcom | 9
we build out a 1-week maxi-mal campaign with a budget of $25k
Thatrsquos significant risk Particularly because analog underwriting isnrsquot just long and drawn out It also leaves CBFIs vulnerable to human error
Think about how many hands touch just one loan from application to funding Think about how many times someone from one department has to chase down information from someone in another department
There are a lot of cooks in this kitchen How many are in yours
Now take that dollar amount and weigh it against potential loss of business due to frustrated customers and negative online reviews Thatrsquos the bad news
The good news is that incorporating digital decisioning into the lending process can significantly reduce exposure ndash and save money in the process
And therersquos a way for every bank to do this
Endangered Species The Threat to Community Banking | Biz2Xcom | 10
The right fintech can save community lending
Imagine a third-party platform that simplifies small business lending functions with up-front KYC validation straight-through processing and other time savers
Think about what it would be like with a built-in proprietary risk assessment algorithm And now consider how much more secure and powerful this could make your lending
Herersquos the solution
Part 2 The Solution
It can seamlessly integrate with lendersrsquo core banking systems to solve these very pain points Configured to your specific credit policy the platform saves you time money and reputation by automating your loan decisions In addition to letting customers upload their own financial information it can also access third-party data like bank accounts credit bureaus and IRS information
This platform exists today Biz2XPart of the configuration process involves setting parameters around managing specific concerns like
bull BSAAML compliance (OFAC screening and other CIP tasks)bull Debt service coverage ratios and other financial ratiosbull Collateralbull HMDACRA reportable information Paired with the proprietary Biz2X algorithm you can easily see where a deal might fall out of credit or compliance
Also itrsquos easy to get started
Endangered Species The Threat to Community Banking | Biz2Xcom | 12
What this all means is
You can decision a loan instantly ndash in a matter of moments instead of months
Endangered Species The Threat to Community Banking | Biz2Xcom | 13
New customer file
Duediligence
Underwriting
Review
Prepare loan package
Fund loan
ManualProcess
Originating a Commercial Loan
DigitalProcess
New customer file
Automatic underwriting
analysis
Underwriting review amp approval
Fund loan
Endangered Species The Threat to Community Banking | Biz2Xcom | 14
ldquoItrsquos a streamlined process The system is intelligent and depending on the type of loan that the customer is applying for it will tell them what type of documentation is required It provides the customer the user with flexibility They can actually start the application from home or from the business and they can complete the application there or they can finish the application by coming to one of our branches ldquo
ldquoFive years ago everything was going through traditional underwriting which is very expensive
As application volume increased we wanted to get something that was a little more efficient [With Biz2X] we can turn around an application in a number of hours Not weeks or monthsldquo
ndash Manuel Chinea COOPopular Bank
ndash Scott Green Senior VP amp Credit Manager Customers Bank
Endangered Species The Threat to Community Banking | Biz2Xcom | 15
What happens after a bank incorporates digital decisioning tools
ldquoHuman beings and machines will always produce better results together than either will alonerdquo
ndash Ash Gupta Biz2X Advisor and former Chief Risk Officer of American Express
Part 3 Making Change Work
Integrating new products and processes is always a large complex project with many moving parts For the first 90 days the work is to align all internal stakeholders ndash from Engineering to Marketing The goal is to make sure that every customer touchpoint is seamless
If a customer starts filling out a loan application online at home one evening puts it down and then walks into their bank branch the next day they should be able pick up where they leave off
Change management support can make a digital transition go smoothly
Itrsquos an excellent idea to engage a professional consultant experienced in shepherding organizations through the dynamics that happen with these kinds of shifts
Endangered Species The Threat to Community Banking | Biz2Xcom | 17
Post-transition the CBFIrsquos secret weapon becomes magnified exponentially
More customer touchpoints mean more time and opportunities to devote to customer retention as well as space to figure out how best to deploy this new wealth of customer data and freed-up in-house resources
That ldquoget to know you in personrdquo quality ndash paired with a digital + human origination process ndash can become a real sustainable ace in the hole
This kind of CBFI wonrsquot just survive It will thrive
Endangered Species The Threat to Community Banking | Biz2Xcom | 18
Thrive with the AI-drivenlending platform
Learn more atBiz2Xcom
copy Biz2X by Biz2Credit 2019 All rights reserved
On the surface things are going well for community and regional banks and credit unions
Though only in charge of a small percentage of total assets theyrsquore disproportionately dominating small business lending
In 2018 community-based financial institutions made 52 of all small business loans even though they controlled only 16 of banking assets
Community-based financial institutions make 52 of all small business loans
They only control 16 of banking assets
52
16
Source Institute for Local Self-Reliance
Endangered Species The Threat to Community Banking | Biz2Xcom | 3
Well if yoursquore part of a community-based
financial institution (CBFI) you probably
already know that where your bank truly excels
is in offering customers significantly more time
per transaction than other larger financial
institutions can
Business and personal checking and savings
merchant services and the portfolio of lending
services all run more smoothly with this
personal attention
By investing time in each customer transaction
CBFIs are able to truly get to know their
borrowers and learn about their businesses and
needs while co-existing with them in the same
market
How did this happen
Sharing a community with their customers
means that CBFIs are privy to all kinds of info
about customer behavior ndash some explicit some
environmental ndash and can then turn that data
and market knowledge into products and
services that their customers need All while
providing a personal touch This becomes a
virtuous cycle
Itrsquos been CBFIsrsquo secret weapon Until now
Because that secret weapon is in danger
Small business lending opportunities are
experiencing a drastic shift And the industry
changes are deep and permanent
Endangered Species The Threat to Community Banking | Biz2Xcom | 4
The extinction of community banks Lending as battleground
Part 1 The Problem for Community Banks
CBFIs have always been at risk ndash whether itrsquos from getting bought out by a larger bank or from simply running out of customers (and therefore money)
Now CBFIs are also at risk of losing their core business to the companies innovating in the paytech and lendtech spaces
Lending especially small business lending is ground zero for this imminent disaster
Endangered Species The Threat to Community Banking | Biz2Xcom | 6
PayPal and Square now lend to their merchant
customers seamlessly integrating small
business loans ndash and loan satisfaction ndash with
their pre-existing POS systems credit card
processing and other offerings
The logic goes if payment companies can lend
faster and better than a bank can merchants
are already using payment companies for
other services and as payment companies
add lending to those services then the nexus
of capital acquisition moves from traditional
lenders to payment companies
These payment upstarts have the additional
advantage of using the first-party customer
data that they already have access to Many of
these new lenders are willing to use alternative
data ndash like purchasing patterns geolocation
etc ndash to evaluate risk which leads to faster
underwriting
Which leads the merchant to have more incentive to borrow Which is a total end-run around banks All banks large and small
Endangered Species The Threat to Community Banking | Biz2Xcom | 7
And the smaller the bank is the bigger of an
issue this can be Customer loyalty is vital to
CBFIs But the way that theyrsquove won loyalty in
the past is now under threat A big CBFI selling
point is offering speedier funding to make up
for not being able to offer more competitive
rates When all types of lenders can offer fast
funding CBFIs need to innovate or risk being
pushed aside
Customers switch banks for any number
of reasons bad customer service products
that donrsquot suit their needs inflexible or
unsatisfactory problem solving difficult-to-
use apps and tools difficult access to financial
advice difficult access to credit
A good fintech platform can stop all of these problems before they start After all if a bankrsquos small business customers are going to Square for lending since theyrsquore already there for POS anyway that bank is in trouble
How bad is this risk For many banks and
CBFIs itrsquos a danger thatrsquos lurking just below the
surface
Endangered Species The Threat to Community Banking | Biz2Xcom | 8
Therersquos one simple problem thatrsquos setting up CBFIs for certain death The combination of lag time and imprecision
TOTAL NUMBER OF HOURS
Herersquos how long a manual loan origination process might take
Letrsquos look at the underwriting process
12
1 work-hour
Create new customer file and related activities
3 work-hours
Conduct customer due diligence
3 work-hours
Conduct underwriting
3 work-hours
Review for final approval
1 work-hour
Prepare loan package
1 work-hour
Fund loan
These hours arenrsquot necessarilycontiguous loan origination involves much
back-and-forth among colleagues
Now think about the overheadLabor costs The cost of capital itself
Loan officerrsquos salary $80000year
$330day
30 ($110) benefits
30 overhead
$660 per loan
Time cost
approximately 12 work-hours per loan
or 15 days per loan of work time ndash
turns into 7-10 days of real time(with delays in customer response other priorities etc)
$660 $660000X 1000
=
=
+
+
Endangered Species The Threat to Community Banking | Biz2Xcom | 9
we build out a 1-week maxi-mal campaign with a budget of $25k
Thatrsquos significant risk Particularly because analog underwriting isnrsquot just long and drawn out It also leaves CBFIs vulnerable to human error
Think about how many hands touch just one loan from application to funding Think about how many times someone from one department has to chase down information from someone in another department
There are a lot of cooks in this kitchen How many are in yours
Now take that dollar amount and weigh it against potential loss of business due to frustrated customers and negative online reviews Thatrsquos the bad news
The good news is that incorporating digital decisioning into the lending process can significantly reduce exposure ndash and save money in the process
And therersquos a way for every bank to do this
Endangered Species The Threat to Community Banking | Biz2Xcom | 10
The right fintech can save community lending
Imagine a third-party platform that simplifies small business lending functions with up-front KYC validation straight-through processing and other time savers
Think about what it would be like with a built-in proprietary risk assessment algorithm And now consider how much more secure and powerful this could make your lending
Herersquos the solution
Part 2 The Solution
It can seamlessly integrate with lendersrsquo core banking systems to solve these very pain points Configured to your specific credit policy the platform saves you time money and reputation by automating your loan decisions In addition to letting customers upload their own financial information it can also access third-party data like bank accounts credit bureaus and IRS information
This platform exists today Biz2XPart of the configuration process involves setting parameters around managing specific concerns like
bull BSAAML compliance (OFAC screening and other CIP tasks)bull Debt service coverage ratios and other financial ratiosbull Collateralbull HMDACRA reportable information Paired with the proprietary Biz2X algorithm you can easily see where a deal might fall out of credit or compliance
Also itrsquos easy to get started
Endangered Species The Threat to Community Banking | Biz2Xcom | 12
What this all means is
You can decision a loan instantly ndash in a matter of moments instead of months
Endangered Species The Threat to Community Banking | Biz2Xcom | 13
New customer file
Duediligence
Underwriting
Review
Prepare loan package
Fund loan
ManualProcess
Originating a Commercial Loan
DigitalProcess
New customer file
Automatic underwriting
analysis
Underwriting review amp approval
Fund loan
Endangered Species The Threat to Community Banking | Biz2Xcom | 14
ldquoItrsquos a streamlined process The system is intelligent and depending on the type of loan that the customer is applying for it will tell them what type of documentation is required It provides the customer the user with flexibility They can actually start the application from home or from the business and they can complete the application there or they can finish the application by coming to one of our branches ldquo
ldquoFive years ago everything was going through traditional underwriting which is very expensive
As application volume increased we wanted to get something that was a little more efficient [With Biz2X] we can turn around an application in a number of hours Not weeks or monthsldquo
ndash Manuel Chinea COOPopular Bank
ndash Scott Green Senior VP amp Credit Manager Customers Bank
Endangered Species The Threat to Community Banking | Biz2Xcom | 15
What happens after a bank incorporates digital decisioning tools
ldquoHuman beings and machines will always produce better results together than either will alonerdquo
ndash Ash Gupta Biz2X Advisor and former Chief Risk Officer of American Express
Part 3 Making Change Work
Integrating new products and processes is always a large complex project with many moving parts For the first 90 days the work is to align all internal stakeholders ndash from Engineering to Marketing The goal is to make sure that every customer touchpoint is seamless
If a customer starts filling out a loan application online at home one evening puts it down and then walks into their bank branch the next day they should be able pick up where they leave off
Change management support can make a digital transition go smoothly
Itrsquos an excellent idea to engage a professional consultant experienced in shepherding organizations through the dynamics that happen with these kinds of shifts
Endangered Species The Threat to Community Banking | Biz2Xcom | 17
Post-transition the CBFIrsquos secret weapon becomes magnified exponentially
More customer touchpoints mean more time and opportunities to devote to customer retention as well as space to figure out how best to deploy this new wealth of customer data and freed-up in-house resources
That ldquoget to know you in personrdquo quality ndash paired with a digital + human origination process ndash can become a real sustainable ace in the hole
This kind of CBFI wonrsquot just survive It will thrive
Endangered Species The Threat to Community Banking | Biz2Xcom | 18
Thrive with the AI-drivenlending platform
Learn more atBiz2Xcom
copy Biz2X by Biz2Credit 2019 All rights reserved
Well if yoursquore part of a community-based
financial institution (CBFI) you probably
already know that where your bank truly excels
is in offering customers significantly more time
per transaction than other larger financial
institutions can
Business and personal checking and savings
merchant services and the portfolio of lending
services all run more smoothly with this
personal attention
By investing time in each customer transaction
CBFIs are able to truly get to know their
borrowers and learn about their businesses and
needs while co-existing with them in the same
market
How did this happen
Sharing a community with their customers
means that CBFIs are privy to all kinds of info
about customer behavior ndash some explicit some
environmental ndash and can then turn that data
and market knowledge into products and
services that their customers need All while
providing a personal touch This becomes a
virtuous cycle
Itrsquos been CBFIsrsquo secret weapon Until now
Because that secret weapon is in danger
Small business lending opportunities are
experiencing a drastic shift And the industry
changes are deep and permanent
Endangered Species The Threat to Community Banking | Biz2Xcom | 4
The extinction of community banks Lending as battleground
Part 1 The Problem for Community Banks
CBFIs have always been at risk ndash whether itrsquos from getting bought out by a larger bank or from simply running out of customers (and therefore money)
Now CBFIs are also at risk of losing their core business to the companies innovating in the paytech and lendtech spaces
Lending especially small business lending is ground zero for this imminent disaster
Endangered Species The Threat to Community Banking | Biz2Xcom | 6
PayPal and Square now lend to their merchant
customers seamlessly integrating small
business loans ndash and loan satisfaction ndash with
their pre-existing POS systems credit card
processing and other offerings
The logic goes if payment companies can lend
faster and better than a bank can merchants
are already using payment companies for
other services and as payment companies
add lending to those services then the nexus
of capital acquisition moves from traditional
lenders to payment companies
These payment upstarts have the additional
advantage of using the first-party customer
data that they already have access to Many of
these new lenders are willing to use alternative
data ndash like purchasing patterns geolocation
etc ndash to evaluate risk which leads to faster
underwriting
Which leads the merchant to have more incentive to borrow Which is a total end-run around banks All banks large and small
Endangered Species The Threat to Community Banking | Biz2Xcom | 7
And the smaller the bank is the bigger of an
issue this can be Customer loyalty is vital to
CBFIs But the way that theyrsquove won loyalty in
the past is now under threat A big CBFI selling
point is offering speedier funding to make up
for not being able to offer more competitive
rates When all types of lenders can offer fast
funding CBFIs need to innovate or risk being
pushed aside
Customers switch banks for any number
of reasons bad customer service products
that donrsquot suit their needs inflexible or
unsatisfactory problem solving difficult-to-
use apps and tools difficult access to financial
advice difficult access to credit
A good fintech platform can stop all of these problems before they start After all if a bankrsquos small business customers are going to Square for lending since theyrsquore already there for POS anyway that bank is in trouble
How bad is this risk For many banks and
CBFIs itrsquos a danger thatrsquos lurking just below the
surface
Endangered Species The Threat to Community Banking | Biz2Xcom | 8
Therersquos one simple problem thatrsquos setting up CBFIs for certain death The combination of lag time and imprecision
TOTAL NUMBER OF HOURS
Herersquos how long a manual loan origination process might take
Letrsquos look at the underwriting process
12
1 work-hour
Create new customer file and related activities
3 work-hours
Conduct customer due diligence
3 work-hours
Conduct underwriting
3 work-hours
Review for final approval
1 work-hour
Prepare loan package
1 work-hour
Fund loan
These hours arenrsquot necessarilycontiguous loan origination involves much
back-and-forth among colleagues
Now think about the overheadLabor costs The cost of capital itself
Loan officerrsquos salary $80000year
$330day
30 ($110) benefits
30 overhead
$660 per loan
Time cost
approximately 12 work-hours per loan
or 15 days per loan of work time ndash
turns into 7-10 days of real time(with delays in customer response other priorities etc)
$660 $660000X 1000
=
=
+
+
Endangered Species The Threat to Community Banking | Biz2Xcom | 9
we build out a 1-week maxi-mal campaign with a budget of $25k
Thatrsquos significant risk Particularly because analog underwriting isnrsquot just long and drawn out It also leaves CBFIs vulnerable to human error
Think about how many hands touch just one loan from application to funding Think about how many times someone from one department has to chase down information from someone in another department
There are a lot of cooks in this kitchen How many are in yours
Now take that dollar amount and weigh it against potential loss of business due to frustrated customers and negative online reviews Thatrsquos the bad news
The good news is that incorporating digital decisioning into the lending process can significantly reduce exposure ndash and save money in the process
And therersquos a way for every bank to do this
Endangered Species The Threat to Community Banking | Biz2Xcom | 10
The right fintech can save community lending
Imagine a third-party platform that simplifies small business lending functions with up-front KYC validation straight-through processing and other time savers
Think about what it would be like with a built-in proprietary risk assessment algorithm And now consider how much more secure and powerful this could make your lending
Herersquos the solution
Part 2 The Solution
It can seamlessly integrate with lendersrsquo core banking systems to solve these very pain points Configured to your specific credit policy the platform saves you time money and reputation by automating your loan decisions In addition to letting customers upload their own financial information it can also access third-party data like bank accounts credit bureaus and IRS information
This platform exists today Biz2XPart of the configuration process involves setting parameters around managing specific concerns like
bull BSAAML compliance (OFAC screening and other CIP tasks)bull Debt service coverage ratios and other financial ratiosbull Collateralbull HMDACRA reportable information Paired with the proprietary Biz2X algorithm you can easily see where a deal might fall out of credit or compliance
Also itrsquos easy to get started
Endangered Species The Threat to Community Banking | Biz2Xcom | 12
What this all means is
You can decision a loan instantly ndash in a matter of moments instead of months
Endangered Species The Threat to Community Banking | Biz2Xcom | 13
New customer file
Duediligence
Underwriting
Review
Prepare loan package
Fund loan
ManualProcess
Originating a Commercial Loan
DigitalProcess
New customer file
Automatic underwriting
analysis
Underwriting review amp approval
Fund loan
Endangered Species The Threat to Community Banking | Biz2Xcom | 14
ldquoItrsquos a streamlined process The system is intelligent and depending on the type of loan that the customer is applying for it will tell them what type of documentation is required It provides the customer the user with flexibility They can actually start the application from home or from the business and they can complete the application there or they can finish the application by coming to one of our branches ldquo
ldquoFive years ago everything was going through traditional underwriting which is very expensive
As application volume increased we wanted to get something that was a little more efficient [With Biz2X] we can turn around an application in a number of hours Not weeks or monthsldquo
ndash Manuel Chinea COOPopular Bank
ndash Scott Green Senior VP amp Credit Manager Customers Bank
Endangered Species The Threat to Community Banking | Biz2Xcom | 15
What happens after a bank incorporates digital decisioning tools
ldquoHuman beings and machines will always produce better results together than either will alonerdquo
ndash Ash Gupta Biz2X Advisor and former Chief Risk Officer of American Express
Part 3 Making Change Work
Integrating new products and processes is always a large complex project with many moving parts For the first 90 days the work is to align all internal stakeholders ndash from Engineering to Marketing The goal is to make sure that every customer touchpoint is seamless
If a customer starts filling out a loan application online at home one evening puts it down and then walks into their bank branch the next day they should be able pick up where they leave off
Change management support can make a digital transition go smoothly
Itrsquos an excellent idea to engage a professional consultant experienced in shepherding organizations through the dynamics that happen with these kinds of shifts
Endangered Species The Threat to Community Banking | Biz2Xcom | 17
Post-transition the CBFIrsquos secret weapon becomes magnified exponentially
More customer touchpoints mean more time and opportunities to devote to customer retention as well as space to figure out how best to deploy this new wealth of customer data and freed-up in-house resources
That ldquoget to know you in personrdquo quality ndash paired with a digital + human origination process ndash can become a real sustainable ace in the hole
This kind of CBFI wonrsquot just survive It will thrive
Endangered Species The Threat to Community Banking | Biz2Xcom | 18
Thrive with the AI-drivenlending platform
Learn more atBiz2Xcom
copy Biz2X by Biz2Credit 2019 All rights reserved
The extinction of community banks Lending as battleground
Part 1 The Problem for Community Banks
CBFIs have always been at risk ndash whether itrsquos from getting bought out by a larger bank or from simply running out of customers (and therefore money)
Now CBFIs are also at risk of losing their core business to the companies innovating in the paytech and lendtech spaces
Lending especially small business lending is ground zero for this imminent disaster
Endangered Species The Threat to Community Banking | Biz2Xcom | 6
PayPal and Square now lend to their merchant
customers seamlessly integrating small
business loans ndash and loan satisfaction ndash with
their pre-existing POS systems credit card
processing and other offerings
The logic goes if payment companies can lend
faster and better than a bank can merchants
are already using payment companies for
other services and as payment companies
add lending to those services then the nexus
of capital acquisition moves from traditional
lenders to payment companies
These payment upstarts have the additional
advantage of using the first-party customer
data that they already have access to Many of
these new lenders are willing to use alternative
data ndash like purchasing patterns geolocation
etc ndash to evaluate risk which leads to faster
underwriting
Which leads the merchant to have more incentive to borrow Which is a total end-run around banks All banks large and small
Endangered Species The Threat to Community Banking | Biz2Xcom | 7
And the smaller the bank is the bigger of an
issue this can be Customer loyalty is vital to
CBFIs But the way that theyrsquove won loyalty in
the past is now under threat A big CBFI selling
point is offering speedier funding to make up
for not being able to offer more competitive
rates When all types of lenders can offer fast
funding CBFIs need to innovate or risk being
pushed aside
Customers switch banks for any number
of reasons bad customer service products
that donrsquot suit their needs inflexible or
unsatisfactory problem solving difficult-to-
use apps and tools difficult access to financial
advice difficult access to credit
A good fintech platform can stop all of these problems before they start After all if a bankrsquos small business customers are going to Square for lending since theyrsquore already there for POS anyway that bank is in trouble
How bad is this risk For many banks and
CBFIs itrsquos a danger thatrsquos lurking just below the
surface
Endangered Species The Threat to Community Banking | Biz2Xcom | 8
Therersquos one simple problem thatrsquos setting up CBFIs for certain death The combination of lag time and imprecision
TOTAL NUMBER OF HOURS
Herersquos how long a manual loan origination process might take
Letrsquos look at the underwriting process
12
1 work-hour
Create new customer file and related activities
3 work-hours
Conduct customer due diligence
3 work-hours
Conduct underwriting
3 work-hours
Review for final approval
1 work-hour
Prepare loan package
1 work-hour
Fund loan
These hours arenrsquot necessarilycontiguous loan origination involves much
back-and-forth among colleagues
Now think about the overheadLabor costs The cost of capital itself
Loan officerrsquos salary $80000year
$330day
30 ($110) benefits
30 overhead
$660 per loan
Time cost
approximately 12 work-hours per loan
or 15 days per loan of work time ndash
turns into 7-10 days of real time(with delays in customer response other priorities etc)
$660 $660000X 1000
=
=
+
+
Endangered Species The Threat to Community Banking | Biz2Xcom | 9
we build out a 1-week maxi-mal campaign with a budget of $25k
Thatrsquos significant risk Particularly because analog underwriting isnrsquot just long and drawn out It also leaves CBFIs vulnerable to human error
Think about how many hands touch just one loan from application to funding Think about how many times someone from one department has to chase down information from someone in another department
There are a lot of cooks in this kitchen How many are in yours
Now take that dollar amount and weigh it against potential loss of business due to frustrated customers and negative online reviews Thatrsquos the bad news
The good news is that incorporating digital decisioning into the lending process can significantly reduce exposure ndash and save money in the process
And therersquos a way for every bank to do this
Endangered Species The Threat to Community Banking | Biz2Xcom | 10
The right fintech can save community lending
Imagine a third-party platform that simplifies small business lending functions with up-front KYC validation straight-through processing and other time savers
Think about what it would be like with a built-in proprietary risk assessment algorithm And now consider how much more secure and powerful this could make your lending
Herersquos the solution
Part 2 The Solution
It can seamlessly integrate with lendersrsquo core banking systems to solve these very pain points Configured to your specific credit policy the platform saves you time money and reputation by automating your loan decisions In addition to letting customers upload their own financial information it can also access third-party data like bank accounts credit bureaus and IRS information
This platform exists today Biz2XPart of the configuration process involves setting parameters around managing specific concerns like
bull BSAAML compliance (OFAC screening and other CIP tasks)bull Debt service coverage ratios and other financial ratiosbull Collateralbull HMDACRA reportable information Paired with the proprietary Biz2X algorithm you can easily see where a deal might fall out of credit or compliance
Also itrsquos easy to get started
Endangered Species The Threat to Community Banking | Biz2Xcom | 12
What this all means is
You can decision a loan instantly ndash in a matter of moments instead of months
Endangered Species The Threat to Community Banking | Biz2Xcom | 13
New customer file
Duediligence
Underwriting
Review
Prepare loan package
Fund loan
ManualProcess
Originating a Commercial Loan
DigitalProcess
New customer file
Automatic underwriting
analysis
Underwriting review amp approval
Fund loan
Endangered Species The Threat to Community Banking | Biz2Xcom | 14
ldquoItrsquos a streamlined process The system is intelligent and depending on the type of loan that the customer is applying for it will tell them what type of documentation is required It provides the customer the user with flexibility They can actually start the application from home or from the business and they can complete the application there or they can finish the application by coming to one of our branches ldquo
ldquoFive years ago everything was going through traditional underwriting which is very expensive
As application volume increased we wanted to get something that was a little more efficient [With Biz2X] we can turn around an application in a number of hours Not weeks or monthsldquo
ndash Manuel Chinea COOPopular Bank
ndash Scott Green Senior VP amp Credit Manager Customers Bank
Endangered Species The Threat to Community Banking | Biz2Xcom | 15
What happens after a bank incorporates digital decisioning tools
ldquoHuman beings and machines will always produce better results together than either will alonerdquo
ndash Ash Gupta Biz2X Advisor and former Chief Risk Officer of American Express
Part 3 Making Change Work
Integrating new products and processes is always a large complex project with many moving parts For the first 90 days the work is to align all internal stakeholders ndash from Engineering to Marketing The goal is to make sure that every customer touchpoint is seamless
If a customer starts filling out a loan application online at home one evening puts it down and then walks into their bank branch the next day they should be able pick up where they leave off
Change management support can make a digital transition go smoothly
Itrsquos an excellent idea to engage a professional consultant experienced in shepherding organizations through the dynamics that happen with these kinds of shifts
Endangered Species The Threat to Community Banking | Biz2Xcom | 17
Post-transition the CBFIrsquos secret weapon becomes magnified exponentially
More customer touchpoints mean more time and opportunities to devote to customer retention as well as space to figure out how best to deploy this new wealth of customer data and freed-up in-house resources
That ldquoget to know you in personrdquo quality ndash paired with a digital + human origination process ndash can become a real sustainable ace in the hole
This kind of CBFI wonrsquot just survive It will thrive
Endangered Species The Threat to Community Banking | Biz2Xcom | 18
Thrive with the AI-drivenlending platform
Learn more atBiz2Xcom
copy Biz2X by Biz2Credit 2019 All rights reserved
CBFIs have always been at risk ndash whether itrsquos from getting bought out by a larger bank or from simply running out of customers (and therefore money)
Now CBFIs are also at risk of losing their core business to the companies innovating in the paytech and lendtech spaces
Lending especially small business lending is ground zero for this imminent disaster
Endangered Species The Threat to Community Banking | Biz2Xcom | 6
PayPal and Square now lend to their merchant
customers seamlessly integrating small
business loans ndash and loan satisfaction ndash with
their pre-existing POS systems credit card
processing and other offerings
The logic goes if payment companies can lend
faster and better than a bank can merchants
are already using payment companies for
other services and as payment companies
add lending to those services then the nexus
of capital acquisition moves from traditional
lenders to payment companies
These payment upstarts have the additional
advantage of using the first-party customer
data that they already have access to Many of
these new lenders are willing to use alternative
data ndash like purchasing patterns geolocation
etc ndash to evaluate risk which leads to faster
underwriting
Which leads the merchant to have more incentive to borrow Which is a total end-run around banks All banks large and small
Endangered Species The Threat to Community Banking | Biz2Xcom | 7
And the smaller the bank is the bigger of an
issue this can be Customer loyalty is vital to
CBFIs But the way that theyrsquove won loyalty in
the past is now under threat A big CBFI selling
point is offering speedier funding to make up
for not being able to offer more competitive
rates When all types of lenders can offer fast
funding CBFIs need to innovate or risk being
pushed aside
Customers switch banks for any number
of reasons bad customer service products
that donrsquot suit their needs inflexible or
unsatisfactory problem solving difficult-to-
use apps and tools difficult access to financial
advice difficult access to credit
A good fintech platform can stop all of these problems before they start After all if a bankrsquos small business customers are going to Square for lending since theyrsquore already there for POS anyway that bank is in trouble
How bad is this risk For many banks and
CBFIs itrsquos a danger thatrsquos lurking just below the
surface
Endangered Species The Threat to Community Banking | Biz2Xcom | 8
Therersquos one simple problem thatrsquos setting up CBFIs for certain death The combination of lag time and imprecision
TOTAL NUMBER OF HOURS
Herersquos how long a manual loan origination process might take
Letrsquos look at the underwriting process
12
1 work-hour
Create new customer file and related activities
3 work-hours
Conduct customer due diligence
3 work-hours
Conduct underwriting
3 work-hours
Review for final approval
1 work-hour
Prepare loan package
1 work-hour
Fund loan
These hours arenrsquot necessarilycontiguous loan origination involves much
back-and-forth among colleagues
Now think about the overheadLabor costs The cost of capital itself
Loan officerrsquos salary $80000year
$330day
30 ($110) benefits
30 overhead
$660 per loan
Time cost
approximately 12 work-hours per loan
or 15 days per loan of work time ndash
turns into 7-10 days of real time(with delays in customer response other priorities etc)
$660 $660000X 1000
=
=
+
+
Endangered Species The Threat to Community Banking | Biz2Xcom | 9
we build out a 1-week maxi-mal campaign with a budget of $25k
Thatrsquos significant risk Particularly because analog underwriting isnrsquot just long and drawn out It also leaves CBFIs vulnerable to human error
Think about how many hands touch just one loan from application to funding Think about how many times someone from one department has to chase down information from someone in another department
There are a lot of cooks in this kitchen How many are in yours
Now take that dollar amount and weigh it against potential loss of business due to frustrated customers and negative online reviews Thatrsquos the bad news
The good news is that incorporating digital decisioning into the lending process can significantly reduce exposure ndash and save money in the process
And therersquos a way for every bank to do this
Endangered Species The Threat to Community Banking | Biz2Xcom | 10
The right fintech can save community lending
Imagine a third-party platform that simplifies small business lending functions with up-front KYC validation straight-through processing and other time savers
Think about what it would be like with a built-in proprietary risk assessment algorithm And now consider how much more secure and powerful this could make your lending
Herersquos the solution
Part 2 The Solution
It can seamlessly integrate with lendersrsquo core banking systems to solve these very pain points Configured to your specific credit policy the platform saves you time money and reputation by automating your loan decisions In addition to letting customers upload their own financial information it can also access third-party data like bank accounts credit bureaus and IRS information
This platform exists today Biz2XPart of the configuration process involves setting parameters around managing specific concerns like
bull BSAAML compliance (OFAC screening and other CIP tasks)bull Debt service coverage ratios and other financial ratiosbull Collateralbull HMDACRA reportable information Paired with the proprietary Biz2X algorithm you can easily see where a deal might fall out of credit or compliance
Also itrsquos easy to get started
Endangered Species The Threat to Community Banking | Biz2Xcom | 12
What this all means is
You can decision a loan instantly ndash in a matter of moments instead of months
Endangered Species The Threat to Community Banking | Biz2Xcom | 13
New customer file
Duediligence
Underwriting
Review
Prepare loan package
Fund loan
ManualProcess
Originating a Commercial Loan
DigitalProcess
New customer file
Automatic underwriting
analysis
Underwriting review amp approval
Fund loan
Endangered Species The Threat to Community Banking | Biz2Xcom | 14
ldquoItrsquos a streamlined process The system is intelligent and depending on the type of loan that the customer is applying for it will tell them what type of documentation is required It provides the customer the user with flexibility They can actually start the application from home or from the business and they can complete the application there or they can finish the application by coming to one of our branches ldquo
ldquoFive years ago everything was going through traditional underwriting which is very expensive
As application volume increased we wanted to get something that was a little more efficient [With Biz2X] we can turn around an application in a number of hours Not weeks or monthsldquo
ndash Manuel Chinea COOPopular Bank
ndash Scott Green Senior VP amp Credit Manager Customers Bank
Endangered Species The Threat to Community Banking | Biz2Xcom | 15
What happens after a bank incorporates digital decisioning tools
ldquoHuman beings and machines will always produce better results together than either will alonerdquo
ndash Ash Gupta Biz2X Advisor and former Chief Risk Officer of American Express
Part 3 Making Change Work
Integrating new products and processes is always a large complex project with many moving parts For the first 90 days the work is to align all internal stakeholders ndash from Engineering to Marketing The goal is to make sure that every customer touchpoint is seamless
If a customer starts filling out a loan application online at home one evening puts it down and then walks into their bank branch the next day they should be able pick up where they leave off
Change management support can make a digital transition go smoothly
Itrsquos an excellent idea to engage a professional consultant experienced in shepherding organizations through the dynamics that happen with these kinds of shifts
Endangered Species The Threat to Community Banking | Biz2Xcom | 17
Post-transition the CBFIrsquos secret weapon becomes magnified exponentially
More customer touchpoints mean more time and opportunities to devote to customer retention as well as space to figure out how best to deploy this new wealth of customer data and freed-up in-house resources
That ldquoget to know you in personrdquo quality ndash paired with a digital + human origination process ndash can become a real sustainable ace in the hole
This kind of CBFI wonrsquot just survive It will thrive
Endangered Species The Threat to Community Banking | Biz2Xcom | 18
Thrive with the AI-drivenlending platform
Learn more atBiz2Xcom
copy Biz2X by Biz2Credit 2019 All rights reserved
PayPal and Square now lend to their merchant
customers seamlessly integrating small
business loans ndash and loan satisfaction ndash with
their pre-existing POS systems credit card
processing and other offerings
The logic goes if payment companies can lend
faster and better than a bank can merchants
are already using payment companies for
other services and as payment companies
add lending to those services then the nexus
of capital acquisition moves from traditional
lenders to payment companies
These payment upstarts have the additional
advantage of using the first-party customer
data that they already have access to Many of
these new lenders are willing to use alternative
data ndash like purchasing patterns geolocation
etc ndash to evaluate risk which leads to faster
underwriting
Which leads the merchant to have more incentive to borrow Which is a total end-run around banks All banks large and small
Endangered Species The Threat to Community Banking | Biz2Xcom | 7
And the smaller the bank is the bigger of an
issue this can be Customer loyalty is vital to
CBFIs But the way that theyrsquove won loyalty in
the past is now under threat A big CBFI selling
point is offering speedier funding to make up
for not being able to offer more competitive
rates When all types of lenders can offer fast
funding CBFIs need to innovate or risk being
pushed aside
Customers switch banks for any number
of reasons bad customer service products
that donrsquot suit their needs inflexible or
unsatisfactory problem solving difficult-to-
use apps and tools difficult access to financial
advice difficult access to credit
A good fintech platform can stop all of these problems before they start After all if a bankrsquos small business customers are going to Square for lending since theyrsquore already there for POS anyway that bank is in trouble
How bad is this risk For many banks and
CBFIs itrsquos a danger thatrsquos lurking just below the
surface
Endangered Species The Threat to Community Banking | Biz2Xcom | 8
Therersquos one simple problem thatrsquos setting up CBFIs for certain death The combination of lag time and imprecision
TOTAL NUMBER OF HOURS
Herersquos how long a manual loan origination process might take
Letrsquos look at the underwriting process
12
1 work-hour
Create new customer file and related activities
3 work-hours
Conduct customer due diligence
3 work-hours
Conduct underwriting
3 work-hours
Review for final approval
1 work-hour
Prepare loan package
1 work-hour
Fund loan
These hours arenrsquot necessarilycontiguous loan origination involves much
back-and-forth among colleagues
Now think about the overheadLabor costs The cost of capital itself
Loan officerrsquos salary $80000year
$330day
30 ($110) benefits
30 overhead
$660 per loan
Time cost
approximately 12 work-hours per loan
or 15 days per loan of work time ndash
turns into 7-10 days of real time(with delays in customer response other priorities etc)
$660 $660000X 1000
=
=
+
+
Endangered Species The Threat to Community Banking | Biz2Xcom | 9
we build out a 1-week maxi-mal campaign with a budget of $25k
Thatrsquos significant risk Particularly because analog underwriting isnrsquot just long and drawn out It also leaves CBFIs vulnerable to human error
Think about how many hands touch just one loan from application to funding Think about how many times someone from one department has to chase down information from someone in another department
There are a lot of cooks in this kitchen How many are in yours
Now take that dollar amount and weigh it against potential loss of business due to frustrated customers and negative online reviews Thatrsquos the bad news
The good news is that incorporating digital decisioning into the lending process can significantly reduce exposure ndash and save money in the process
And therersquos a way for every bank to do this
Endangered Species The Threat to Community Banking | Biz2Xcom | 10
The right fintech can save community lending
Imagine a third-party platform that simplifies small business lending functions with up-front KYC validation straight-through processing and other time savers
Think about what it would be like with a built-in proprietary risk assessment algorithm And now consider how much more secure and powerful this could make your lending
Herersquos the solution
Part 2 The Solution
It can seamlessly integrate with lendersrsquo core banking systems to solve these very pain points Configured to your specific credit policy the platform saves you time money and reputation by automating your loan decisions In addition to letting customers upload their own financial information it can also access third-party data like bank accounts credit bureaus and IRS information
This platform exists today Biz2XPart of the configuration process involves setting parameters around managing specific concerns like
bull BSAAML compliance (OFAC screening and other CIP tasks)bull Debt service coverage ratios and other financial ratiosbull Collateralbull HMDACRA reportable information Paired with the proprietary Biz2X algorithm you can easily see where a deal might fall out of credit or compliance
Also itrsquos easy to get started
Endangered Species The Threat to Community Banking | Biz2Xcom | 12
What this all means is
You can decision a loan instantly ndash in a matter of moments instead of months
Endangered Species The Threat to Community Banking | Biz2Xcom | 13
New customer file
Duediligence
Underwriting
Review
Prepare loan package
Fund loan
ManualProcess
Originating a Commercial Loan
DigitalProcess
New customer file
Automatic underwriting
analysis
Underwriting review amp approval
Fund loan
Endangered Species The Threat to Community Banking | Biz2Xcom | 14
ldquoItrsquos a streamlined process The system is intelligent and depending on the type of loan that the customer is applying for it will tell them what type of documentation is required It provides the customer the user with flexibility They can actually start the application from home or from the business and they can complete the application there or they can finish the application by coming to one of our branches ldquo
ldquoFive years ago everything was going through traditional underwriting which is very expensive
As application volume increased we wanted to get something that was a little more efficient [With Biz2X] we can turn around an application in a number of hours Not weeks or monthsldquo
ndash Manuel Chinea COOPopular Bank
ndash Scott Green Senior VP amp Credit Manager Customers Bank
Endangered Species The Threat to Community Banking | Biz2Xcom | 15
What happens after a bank incorporates digital decisioning tools
ldquoHuman beings and machines will always produce better results together than either will alonerdquo
ndash Ash Gupta Biz2X Advisor and former Chief Risk Officer of American Express
Part 3 Making Change Work
Integrating new products and processes is always a large complex project with many moving parts For the first 90 days the work is to align all internal stakeholders ndash from Engineering to Marketing The goal is to make sure that every customer touchpoint is seamless
If a customer starts filling out a loan application online at home one evening puts it down and then walks into their bank branch the next day they should be able pick up where they leave off
Change management support can make a digital transition go smoothly
Itrsquos an excellent idea to engage a professional consultant experienced in shepherding organizations through the dynamics that happen with these kinds of shifts
Endangered Species The Threat to Community Banking | Biz2Xcom | 17
Post-transition the CBFIrsquos secret weapon becomes magnified exponentially
More customer touchpoints mean more time and opportunities to devote to customer retention as well as space to figure out how best to deploy this new wealth of customer data and freed-up in-house resources
That ldquoget to know you in personrdquo quality ndash paired with a digital + human origination process ndash can become a real sustainable ace in the hole
This kind of CBFI wonrsquot just survive It will thrive
Endangered Species The Threat to Community Banking | Biz2Xcom | 18
Thrive with the AI-drivenlending platform
Learn more atBiz2Xcom
copy Biz2X by Biz2Credit 2019 All rights reserved
And the smaller the bank is the bigger of an
issue this can be Customer loyalty is vital to
CBFIs But the way that theyrsquove won loyalty in
the past is now under threat A big CBFI selling
point is offering speedier funding to make up
for not being able to offer more competitive
rates When all types of lenders can offer fast
funding CBFIs need to innovate or risk being
pushed aside
Customers switch banks for any number
of reasons bad customer service products
that donrsquot suit their needs inflexible or
unsatisfactory problem solving difficult-to-
use apps and tools difficult access to financial
advice difficult access to credit
A good fintech platform can stop all of these problems before they start After all if a bankrsquos small business customers are going to Square for lending since theyrsquore already there for POS anyway that bank is in trouble
How bad is this risk For many banks and
CBFIs itrsquos a danger thatrsquos lurking just below the
surface
Endangered Species The Threat to Community Banking | Biz2Xcom | 8
Therersquos one simple problem thatrsquos setting up CBFIs for certain death The combination of lag time and imprecision
TOTAL NUMBER OF HOURS
Herersquos how long a manual loan origination process might take
Letrsquos look at the underwriting process
12
1 work-hour
Create new customer file and related activities
3 work-hours
Conduct customer due diligence
3 work-hours
Conduct underwriting
3 work-hours
Review for final approval
1 work-hour
Prepare loan package
1 work-hour
Fund loan
These hours arenrsquot necessarilycontiguous loan origination involves much
back-and-forth among colleagues
Now think about the overheadLabor costs The cost of capital itself
Loan officerrsquos salary $80000year
$330day
30 ($110) benefits
30 overhead
$660 per loan
Time cost
approximately 12 work-hours per loan
or 15 days per loan of work time ndash
turns into 7-10 days of real time(with delays in customer response other priorities etc)
$660 $660000X 1000
=
=
+
+
Endangered Species The Threat to Community Banking | Biz2Xcom | 9
we build out a 1-week maxi-mal campaign with a budget of $25k
Thatrsquos significant risk Particularly because analog underwriting isnrsquot just long and drawn out It also leaves CBFIs vulnerable to human error
Think about how many hands touch just one loan from application to funding Think about how many times someone from one department has to chase down information from someone in another department
There are a lot of cooks in this kitchen How many are in yours
Now take that dollar amount and weigh it against potential loss of business due to frustrated customers and negative online reviews Thatrsquos the bad news
The good news is that incorporating digital decisioning into the lending process can significantly reduce exposure ndash and save money in the process
And therersquos a way for every bank to do this
Endangered Species The Threat to Community Banking | Biz2Xcom | 10
The right fintech can save community lending
Imagine a third-party platform that simplifies small business lending functions with up-front KYC validation straight-through processing and other time savers
Think about what it would be like with a built-in proprietary risk assessment algorithm And now consider how much more secure and powerful this could make your lending
Herersquos the solution
Part 2 The Solution
It can seamlessly integrate with lendersrsquo core banking systems to solve these very pain points Configured to your specific credit policy the platform saves you time money and reputation by automating your loan decisions In addition to letting customers upload their own financial information it can also access third-party data like bank accounts credit bureaus and IRS information
This platform exists today Biz2XPart of the configuration process involves setting parameters around managing specific concerns like
bull BSAAML compliance (OFAC screening and other CIP tasks)bull Debt service coverage ratios and other financial ratiosbull Collateralbull HMDACRA reportable information Paired with the proprietary Biz2X algorithm you can easily see where a deal might fall out of credit or compliance
Also itrsquos easy to get started
Endangered Species The Threat to Community Banking | Biz2Xcom | 12
What this all means is
You can decision a loan instantly ndash in a matter of moments instead of months
Endangered Species The Threat to Community Banking | Biz2Xcom | 13
New customer file
Duediligence
Underwriting
Review
Prepare loan package
Fund loan
ManualProcess
Originating a Commercial Loan
DigitalProcess
New customer file
Automatic underwriting
analysis
Underwriting review amp approval
Fund loan
Endangered Species The Threat to Community Banking | Biz2Xcom | 14
ldquoItrsquos a streamlined process The system is intelligent and depending on the type of loan that the customer is applying for it will tell them what type of documentation is required It provides the customer the user with flexibility They can actually start the application from home or from the business and they can complete the application there or they can finish the application by coming to one of our branches ldquo
ldquoFive years ago everything was going through traditional underwriting which is very expensive
As application volume increased we wanted to get something that was a little more efficient [With Biz2X] we can turn around an application in a number of hours Not weeks or monthsldquo
ndash Manuel Chinea COOPopular Bank
ndash Scott Green Senior VP amp Credit Manager Customers Bank
Endangered Species The Threat to Community Banking | Biz2Xcom | 15
What happens after a bank incorporates digital decisioning tools
ldquoHuman beings and machines will always produce better results together than either will alonerdquo
ndash Ash Gupta Biz2X Advisor and former Chief Risk Officer of American Express
Part 3 Making Change Work
Integrating new products and processes is always a large complex project with many moving parts For the first 90 days the work is to align all internal stakeholders ndash from Engineering to Marketing The goal is to make sure that every customer touchpoint is seamless
If a customer starts filling out a loan application online at home one evening puts it down and then walks into their bank branch the next day they should be able pick up where they leave off
Change management support can make a digital transition go smoothly
Itrsquos an excellent idea to engage a professional consultant experienced in shepherding organizations through the dynamics that happen with these kinds of shifts
Endangered Species The Threat to Community Banking | Biz2Xcom | 17
Post-transition the CBFIrsquos secret weapon becomes magnified exponentially
More customer touchpoints mean more time and opportunities to devote to customer retention as well as space to figure out how best to deploy this new wealth of customer data and freed-up in-house resources
That ldquoget to know you in personrdquo quality ndash paired with a digital + human origination process ndash can become a real sustainable ace in the hole
This kind of CBFI wonrsquot just survive It will thrive
Endangered Species The Threat to Community Banking | Biz2Xcom | 18
Thrive with the AI-drivenlending platform
Learn more atBiz2Xcom
copy Biz2X by Biz2Credit 2019 All rights reserved
Therersquos one simple problem thatrsquos setting up CBFIs for certain death The combination of lag time and imprecision
TOTAL NUMBER OF HOURS
Herersquos how long a manual loan origination process might take
Letrsquos look at the underwriting process
12
1 work-hour
Create new customer file and related activities
3 work-hours
Conduct customer due diligence
3 work-hours
Conduct underwriting
3 work-hours
Review for final approval
1 work-hour
Prepare loan package
1 work-hour
Fund loan
These hours arenrsquot necessarilycontiguous loan origination involves much
back-and-forth among colleagues
Now think about the overheadLabor costs The cost of capital itself
Loan officerrsquos salary $80000year
$330day
30 ($110) benefits
30 overhead
$660 per loan
Time cost
approximately 12 work-hours per loan
or 15 days per loan of work time ndash
turns into 7-10 days of real time(with delays in customer response other priorities etc)
$660 $660000X 1000
=
=
+
+
Endangered Species The Threat to Community Banking | Biz2Xcom | 9
we build out a 1-week maxi-mal campaign with a budget of $25k
Thatrsquos significant risk Particularly because analog underwriting isnrsquot just long and drawn out It also leaves CBFIs vulnerable to human error
Think about how many hands touch just one loan from application to funding Think about how many times someone from one department has to chase down information from someone in another department
There are a lot of cooks in this kitchen How many are in yours
Now take that dollar amount and weigh it against potential loss of business due to frustrated customers and negative online reviews Thatrsquos the bad news
The good news is that incorporating digital decisioning into the lending process can significantly reduce exposure ndash and save money in the process
And therersquos a way for every bank to do this
Endangered Species The Threat to Community Banking | Biz2Xcom | 10
The right fintech can save community lending
Imagine a third-party platform that simplifies small business lending functions with up-front KYC validation straight-through processing and other time savers
Think about what it would be like with a built-in proprietary risk assessment algorithm And now consider how much more secure and powerful this could make your lending
Herersquos the solution
Part 2 The Solution
It can seamlessly integrate with lendersrsquo core banking systems to solve these very pain points Configured to your specific credit policy the platform saves you time money and reputation by automating your loan decisions In addition to letting customers upload their own financial information it can also access third-party data like bank accounts credit bureaus and IRS information
This platform exists today Biz2XPart of the configuration process involves setting parameters around managing specific concerns like
bull BSAAML compliance (OFAC screening and other CIP tasks)bull Debt service coverage ratios and other financial ratiosbull Collateralbull HMDACRA reportable information Paired with the proprietary Biz2X algorithm you can easily see where a deal might fall out of credit or compliance
Also itrsquos easy to get started
Endangered Species The Threat to Community Banking | Biz2Xcom | 12
What this all means is
You can decision a loan instantly ndash in a matter of moments instead of months
Endangered Species The Threat to Community Banking | Biz2Xcom | 13
New customer file
Duediligence
Underwriting
Review
Prepare loan package
Fund loan
ManualProcess
Originating a Commercial Loan
DigitalProcess
New customer file
Automatic underwriting
analysis
Underwriting review amp approval
Fund loan
Endangered Species The Threat to Community Banking | Biz2Xcom | 14
ldquoItrsquos a streamlined process The system is intelligent and depending on the type of loan that the customer is applying for it will tell them what type of documentation is required It provides the customer the user with flexibility They can actually start the application from home or from the business and they can complete the application there or they can finish the application by coming to one of our branches ldquo
ldquoFive years ago everything was going through traditional underwriting which is very expensive
As application volume increased we wanted to get something that was a little more efficient [With Biz2X] we can turn around an application in a number of hours Not weeks or monthsldquo
ndash Manuel Chinea COOPopular Bank
ndash Scott Green Senior VP amp Credit Manager Customers Bank
Endangered Species The Threat to Community Banking | Biz2Xcom | 15
What happens after a bank incorporates digital decisioning tools
ldquoHuman beings and machines will always produce better results together than either will alonerdquo
ndash Ash Gupta Biz2X Advisor and former Chief Risk Officer of American Express
Part 3 Making Change Work
Integrating new products and processes is always a large complex project with many moving parts For the first 90 days the work is to align all internal stakeholders ndash from Engineering to Marketing The goal is to make sure that every customer touchpoint is seamless
If a customer starts filling out a loan application online at home one evening puts it down and then walks into their bank branch the next day they should be able pick up where they leave off
Change management support can make a digital transition go smoothly
Itrsquos an excellent idea to engage a professional consultant experienced in shepherding organizations through the dynamics that happen with these kinds of shifts
Endangered Species The Threat to Community Banking | Biz2Xcom | 17
Post-transition the CBFIrsquos secret weapon becomes magnified exponentially
More customer touchpoints mean more time and opportunities to devote to customer retention as well as space to figure out how best to deploy this new wealth of customer data and freed-up in-house resources
That ldquoget to know you in personrdquo quality ndash paired with a digital + human origination process ndash can become a real sustainable ace in the hole
This kind of CBFI wonrsquot just survive It will thrive
Endangered Species The Threat to Community Banking | Biz2Xcom | 18
Thrive with the AI-drivenlending platform
Learn more atBiz2Xcom
copy Biz2X by Biz2Credit 2019 All rights reserved
Thatrsquos significant risk Particularly because analog underwriting isnrsquot just long and drawn out It also leaves CBFIs vulnerable to human error
Think about how many hands touch just one loan from application to funding Think about how many times someone from one department has to chase down information from someone in another department
There are a lot of cooks in this kitchen How many are in yours
Now take that dollar amount and weigh it against potential loss of business due to frustrated customers and negative online reviews Thatrsquos the bad news
The good news is that incorporating digital decisioning into the lending process can significantly reduce exposure ndash and save money in the process
And therersquos a way for every bank to do this
Endangered Species The Threat to Community Banking | Biz2Xcom | 10
The right fintech can save community lending
Imagine a third-party platform that simplifies small business lending functions with up-front KYC validation straight-through processing and other time savers
Think about what it would be like with a built-in proprietary risk assessment algorithm And now consider how much more secure and powerful this could make your lending
Herersquos the solution
Part 2 The Solution
It can seamlessly integrate with lendersrsquo core banking systems to solve these very pain points Configured to your specific credit policy the platform saves you time money and reputation by automating your loan decisions In addition to letting customers upload their own financial information it can also access third-party data like bank accounts credit bureaus and IRS information
This platform exists today Biz2XPart of the configuration process involves setting parameters around managing specific concerns like
bull BSAAML compliance (OFAC screening and other CIP tasks)bull Debt service coverage ratios and other financial ratiosbull Collateralbull HMDACRA reportable information Paired with the proprietary Biz2X algorithm you can easily see where a deal might fall out of credit or compliance
Also itrsquos easy to get started
Endangered Species The Threat to Community Banking | Biz2Xcom | 12
What this all means is
You can decision a loan instantly ndash in a matter of moments instead of months
Endangered Species The Threat to Community Banking | Biz2Xcom | 13
New customer file
Duediligence
Underwriting
Review
Prepare loan package
Fund loan
ManualProcess
Originating a Commercial Loan
DigitalProcess
New customer file
Automatic underwriting
analysis
Underwriting review amp approval
Fund loan
Endangered Species The Threat to Community Banking | Biz2Xcom | 14
ldquoItrsquos a streamlined process The system is intelligent and depending on the type of loan that the customer is applying for it will tell them what type of documentation is required It provides the customer the user with flexibility They can actually start the application from home or from the business and they can complete the application there or they can finish the application by coming to one of our branches ldquo
ldquoFive years ago everything was going through traditional underwriting which is very expensive
As application volume increased we wanted to get something that was a little more efficient [With Biz2X] we can turn around an application in a number of hours Not weeks or monthsldquo
ndash Manuel Chinea COOPopular Bank
ndash Scott Green Senior VP amp Credit Manager Customers Bank
Endangered Species The Threat to Community Banking | Biz2Xcom | 15
What happens after a bank incorporates digital decisioning tools
ldquoHuman beings and machines will always produce better results together than either will alonerdquo
ndash Ash Gupta Biz2X Advisor and former Chief Risk Officer of American Express
Part 3 Making Change Work
Integrating new products and processes is always a large complex project with many moving parts For the first 90 days the work is to align all internal stakeholders ndash from Engineering to Marketing The goal is to make sure that every customer touchpoint is seamless
If a customer starts filling out a loan application online at home one evening puts it down and then walks into their bank branch the next day they should be able pick up where they leave off
Change management support can make a digital transition go smoothly
Itrsquos an excellent idea to engage a professional consultant experienced in shepherding organizations through the dynamics that happen with these kinds of shifts
Endangered Species The Threat to Community Banking | Biz2Xcom | 17
Post-transition the CBFIrsquos secret weapon becomes magnified exponentially
More customer touchpoints mean more time and opportunities to devote to customer retention as well as space to figure out how best to deploy this new wealth of customer data and freed-up in-house resources
That ldquoget to know you in personrdquo quality ndash paired with a digital + human origination process ndash can become a real sustainable ace in the hole
This kind of CBFI wonrsquot just survive It will thrive
Endangered Species The Threat to Community Banking | Biz2Xcom | 18
Thrive with the AI-drivenlending platform
Learn more atBiz2Xcom
copy Biz2X by Biz2Credit 2019 All rights reserved
The right fintech can save community lending
Imagine a third-party platform that simplifies small business lending functions with up-front KYC validation straight-through processing and other time savers
Think about what it would be like with a built-in proprietary risk assessment algorithm And now consider how much more secure and powerful this could make your lending
Herersquos the solution
Part 2 The Solution
It can seamlessly integrate with lendersrsquo core banking systems to solve these very pain points Configured to your specific credit policy the platform saves you time money and reputation by automating your loan decisions In addition to letting customers upload their own financial information it can also access third-party data like bank accounts credit bureaus and IRS information
This platform exists today Biz2XPart of the configuration process involves setting parameters around managing specific concerns like
bull BSAAML compliance (OFAC screening and other CIP tasks)bull Debt service coverage ratios and other financial ratiosbull Collateralbull HMDACRA reportable information Paired with the proprietary Biz2X algorithm you can easily see where a deal might fall out of credit or compliance
Also itrsquos easy to get started
Endangered Species The Threat to Community Banking | Biz2Xcom | 12
What this all means is
You can decision a loan instantly ndash in a matter of moments instead of months
Endangered Species The Threat to Community Banking | Biz2Xcom | 13
New customer file
Duediligence
Underwriting
Review
Prepare loan package
Fund loan
ManualProcess
Originating a Commercial Loan
DigitalProcess
New customer file
Automatic underwriting
analysis
Underwriting review amp approval
Fund loan
Endangered Species The Threat to Community Banking | Biz2Xcom | 14
ldquoItrsquos a streamlined process The system is intelligent and depending on the type of loan that the customer is applying for it will tell them what type of documentation is required It provides the customer the user with flexibility They can actually start the application from home or from the business and they can complete the application there or they can finish the application by coming to one of our branches ldquo
ldquoFive years ago everything was going through traditional underwriting which is very expensive
As application volume increased we wanted to get something that was a little more efficient [With Biz2X] we can turn around an application in a number of hours Not weeks or monthsldquo
ndash Manuel Chinea COOPopular Bank
ndash Scott Green Senior VP amp Credit Manager Customers Bank
Endangered Species The Threat to Community Banking | Biz2Xcom | 15
What happens after a bank incorporates digital decisioning tools
ldquoHuman beings and machines will always produce better results together than either will alonerdquo
ndash Ash Gupta Biz2X Advisor and former Chief Risk Officer of American Express
Part 3 Making Change Work
Integrating new products and processes is always a large complex project with many moving parts For the first 90 days the work is to align all internal stakeholders ndash from Engineering to Marketing The goal is to make sure that every customer touchpoint is seamless
If a customer starts filling out a loan application online at home one evening puts it down and then walks into their bank branch the next day they should be able pick up where they leave off
Change management support can make a digital transition go smoothly
Itrsquos an excellent idea to engage a professional consultant experienced in shepherding organizations through the dynamics that happen with these kinds of shifts
Endangered Species The Threat to Community Banking | Biz2Xcom | 17
Post-transition the CBFIrsquos secret weapon becomes magnified exponentially
More customer touchpoints mean more time and opportunities to devote to customer retention as well as space to figure out how best to deploy this new wealth of customer data and freed-up in-house resources
That ldquoget to know you in personrdquo quality ndash paired with a digital + human origination process ndash can become a real sustainable ace in the hole
This kind of CBFI wonrsquot just survive It will thrive
Endangered Species The Threat to Community Banking | Biz2Xcom | 18
Thrive with the AI-drivenlending platform
Learn more atBiz2Xcom
copy Biz2X by Biz2Credit 2019 All rights reserved
It can seamlessly integrate with lendersrsquo core banking systems to solve these very pain points Configured to your specific credit policy the platform saves you time money and reputation by automating your loan decisions In addition to letting customers upload their own financial information it can also access third-party data like bank accounts credit bureaus and IRS information
This platform exists today Biz2XPart of the configuration process involves setting parameters around managing specific concerns like
bull BSAAML compliance (OFAC screening and other CIP tasks)bull Debt service coverage ratios and other financial ratiosbull Collateralbull HMDACRA reportable information Paired with the proprietary Biz2X algorithm you can easily see where a deal might fall out of credit or compliance
Also itrsquos easy to get started
Endangered Species The Threat to Community Banking | Biz2Xcom | 12
What this all means is
You can decision a loan instantly ndash in a matter of moments instead of months
Endangered Species The Threat to Community Banking | Biz2Xcom | 13
New customer file
Duediligence
Underwriting
Review
Prepare loan package
Fund loan
ManualProcess
Originating a Commercial Loan
DigitalProcess
New customer file
Automatic underwriting
analysis
Underwriting review amp approval
Fund loan
Endangered Species The Threat to Community Banking | Biz2Xcom | 14
ldquoItrsquos a streamlined process The system is intelligent and depending on the type of loan that the customer is applying for it will tell them what type of documentation is required It provides the customer the user with flexibility They can actually start the application from home or from the business and they can complete the application there or they can finish the application by coming to one of our branches ldquo
ldquoFive years ago everything was going through traditional underwriting which is very expensive
As application volume increased we wanted to get something that was a little more efficient [With Biz2X] we can turn around an application in a number of hours Not weeks or monthsldquo
ndash Manuel Chinea COOPopular Bank
ndash Scott Green Senior VP amp Credit Manager Customers Bank
Endangered Species The Threat to Community Banking | Biz2Xcom | 15
What happens after a bank incorporates digital decisioning tools
ldquoHuman beings and machines will always produce better results together than either will alonerdquo
ndash Ash Gupta Biz2X Advisor and former Chief Risk Officer of American Express
Part 3 Making Change Work
Integrating new products and processes is always a large complex project with many moving parts For the first 90 days the work is to align all internal stakeholders ndash from Engineering to Marketing The goal is to make sure that every customer touchpoint is seamless
If a customer starts filling out a loan application online at home one evening puts it down and then walks into their bank branch the next day they should be able pick up where they leave off
Change management support can make a digital transition go smoothly
Itrsquos an excellent idea to engage a professional consultant experienced in shepherding organizations through the dynamics that happen with these kinds of shifts
Endangered Species The Threat to Community Banking | Biz2Xcom | 17
Post-transition the CBFIrsquos secret weapon becomes magnified exponentially
More customer touchpoints mean more time and opportunities to devote to customer retention as well as space to figure out how best to deploy this new wealth of customer data and freed-up in-house resources
That ldquoget to know you in personrdquo quality ndash paired with a digital + human origination process ndash can become a real sustainable ace in the hole
This kind of CBFI wonrsquot just survive It will thrive
Endangered Species The Threat to Community Banking | Biz2Xcom | 18
Thrive with the AI-drivenlending platform
Learn more atBiz2Xcom
copy Biz2X by Biz2Credit 2019 All rights reserved
What this all means is
You can decision a loan instantly ndash in a matter of moments instead of months
Endangered Species The Threat to Community Banking | Biz2Xcom | 13
New customer file
Duediligence
Underwriting
Review
Prepare loan package
Fund loan
ManualProcess
Originating a Commercial Loan
DigitalProcess
New customer file
Automatic underwriting
analysis
Underwriting review amp approval
Fund loan
Endangered Species The Threat to Community Banking | Biz2Xcom | 14
ldquoItrsquos a streamlined process The system is intelligent and depending on the type of loan that the customer is applying for it will tell them what type of documentation is required It provides the customer the user with flexibility They can actually start the application from home or from the business and they can complete the application there or they can finish the application by coming to one of our branches ldquo
ldquoFive years ago everything was going through traditional underwriting which is very expensive
As application volume increased we wanted to get something that was a little more efficient [With Biz2X] we can turn around an application in a number of hours Not weeks or monthsldquo
ndash Manuel Chinea COOPopular Bank
ndash Scott Green Senior VP amp Credit Manager Customers Bank
Endangered Species The Threat to Community Banking | Biz2Xcom | 15
What happens after a bank incorporates digital decisioning tools
ldquoHuman beings and machines will always produce better results together than either will alonerdquo
ndash Ash Gupta Biz2X Advisor and former Chief Risk Officer of American Express
Part 3 Making Change Work
Integrating new products and processes is always a large complex project with many moving parts For the first 90 days the work is to align all internal stakeholders ndash from Engineering to Marketing The goal is to make sure that every customer touchpoint is seamless
If a customer starts filling out a loan application online at home one evening puts it down and then walks into their bank branch the next day they should be able pick up where they leave off
Change management support can make a digital transition go smoothly
Itrsquos an excellent idea to engage a professional consultant experienced in shepherding organizations through the dynamics that happen with these kinds of shifts
Endangered Species The Threat to Community Banking | Biz2Xcom | 17
Post-transition the CBFIrsquos secret weapon becomes magnified exponentially
More customer touchpoints mean more time and opportunities to devote to customer retention as well as space to figure out how best to deploy this new wealth of customer data and freed-up in-house resources
That ldquoget to know you in personrdquo quality ndash paired with a digital + human origination process ndash can become a real sustainable ace in the hole
This kind of CBFI wonrsquot just survive It will thrive
Endangered Species The Threat to Community Banking | Biz2Xcom | 18
Thrive with the AI-drivenlending platform
Learn more atBiz2Xcom
copy Biz2X by Biz2Credit 2019 All rights reserved
New customer file
Duediligence
Underwriting
Review
Prepare loan package
Fund loan
ManualProcess
Originating a Commercial Loan
DigitalProcess
New customer file
Automatic underwriting
analysis
Underwriting review amp approval
Fund loan
Endangered Species The Threat to Community Banking | Biz2Xcom | 14
ldquoItrsquos a streamlined process The system is intelligent and depending on the type of loan that the customer is applying for it will tell them what type of documentation is required It provides the customer the user with flexibility They can actually start the application from home or from the business and they can complete the application there or they can finish the application by coming to one of our branches ldquo
ldquoFive years ago everything was going through traditional underwriting which is very expensive
As application volume increased we wanted to get something that was a little more efficient [With Biz2X] we can turn around an application in a number of hours Not weeks or monthsldquo
ndash Manuel Chinea COOPopular Bank
ndash Scott Green Senior VP amp Credit Manager Customers Bank
Endangered Species The Threat to Community Banking | Biz2Xcom | 15
What happens after a bank incorporates digital decisioning tools
ldquoHuman beings and machines will always produce better results together than either will alonerdquo
ndash Ash Gupta Biz2X Advisor and former Chief Risk Officer of American Express
Part 3 Making Change Work
Integrating new products and processes is always a large complex project with many moving parts For the first 90 days the work is to align all internal stakeholders ndash from Engineering to Marketing The goal is to make sure that every customer touchpoint is seamless
If a customer starts filling out a loan application online at home one evening puts it down and then walks into their bank branch the next day they should be able pick up where they leave off
Change management support can make a digital transition go smoothly
Itrsquos an excellent idea to engage a professional consultant experienced in shepherding organizations through the dynamics that happen with these kinds of shifts
Endangered Species The Threat to Community Banking | Biz2Xcom | 17
Post-transition the CBFIrsquos secret weapon becomes magnified exponentially
More customer touchpoints mean more time and opportunities to devote to customer retention as well as space to figure out how best to deploy this new wealth of customer data and freed-up in-house resources
That ldquoget to know you in personrdquo quality ndash paired with a digital + human origination process ndash can become a real sustainable ace in the hole
This kind of CBFI wonrsquot just survive It will thrive
Endangered Species The Threat to Community Banking | Biz2Xcom | 18
Thrive with the AI-drivenlending platform
Learn more atBiz2Xcom
copy Biz2X by Biz2Credit 2019 All rights reserved
ldquoItrsquos a streamlined process The system is intelligent and depending on the type of loan that the customer is applying for it will tell them what type of documentation is required It provides the customer the user with flexibility They can actually start the application from home or from the business and they can complete the application there or they can finish the application by coming to one of our branches ldquo
ldquoFive years ago everything was going through traditional underwriting which is very expensive
As application volume increased we wanted to get something that was a little more efficient [With Biz2X] we can turn around an application in a number of hours Not weeks or monthsldquo
ndash Manuel Chinea COOPopular Bank
ndash Scott Green Senior VP amp Credit Manager Customers Bank
Endangered Species The Threat to Community Banking | Biz2Xcom | 15
What happens after a bank incorporates digital decisioning tools
ldquoHuman beings and machines will always produce better results together than either will alonerdquo
ndash Ash Gupta Biz2X Advisor and former Chief Risk Officer of American Express
Part 3 Making Change Work
Integrating new products and processes is always a large complex project with many moving parts For the first 90 days the work is to align all internal stakeholders ndash from Engineering to Marketing The goal is to make sure that every customer touchpoint is seamless
If a customer starts filling out a loan application online at home one evening puts it down and then walks into their bank branch the next day they should be able pick up where they leave off
Change management support can make a digital transition go smoothly
Itrsquos an excellent idea to engage a professional consultant experienced in shepherding organizations through the dynamics that happen with these kinds of shifts
Endangered Species The Threat to Community Banking | Biz2Xcom | 17
Post-transition the CBFIrsquos secret weapon becomes magnified exponentially
More customer touchpoints mean more time and opportunities to devote to customer retention as well as space to figure out how best to deploy this new wealth of customer data and freed-up in-house resources
That ldquoget to know you in personrdquo quality ndash paired with a digital + human origination process ndash can become a real sustainable ace in the hole
This kind of CBFI wonrsquot just survive It will thrive
Endangered Species The Threat to Community Banking | Biz2Xcom | 18
Thrive with the AI-drivenlending platform
Learn more atBiz2Xcom
copy Biz2X by Biz2Credit 2019 All rights reserved
What happens after a bank incorporates digital decisioning tools
ldquoHuman beings and machines will always produce better results together than either will alonerdquo
ndash Ash Gupta Biz2X Advisor and former Chief Risk Officer of American Express
Part 3 Making Change Work
Integrating new products and processes is always a large complex project with many moving parts For the first 90 days the work is to align all internal stakeholders ndash from Engineering to Marketing The goal is to make sure that every customer touchpoint is seamless
If a customer starts filling out a loan application online at home one evening puts it down and then walks into their bank branch the next day they should be able pick up where they leave off
Change management support can make a digital transition go smoothly
Itrsquos an excellent idea to engage a professional consultant experienced in shepherding organizations through the dynamics that happen with these kinds of shifts
Endangered Species The Threat to Community Banking | Biz2Xcom | 17
Post-transition the CBFIrsquos secret weapon becomes magnified exponentially
More customer touchpoints mean more time and opportunities to devote to customer retention as well as space to figure out how best to deploy this new wealth of customer data and freed-up in-house resources
That ldquoget to know you in personrdquo quality ndash paired with a digital + human origination process ndash can become a real sustainable ace in the hole
This kind of CBFI wonrsquot just survive It will thrive
Endangered Species The Threat to Community Banking | Biz2Xcom | 18
Thrive with the AI-drivenlending platform
Learn more atBiz2Xcom
copy Biz2X by Biz2Credit 2019 All rights reserved
Integrating new products and processes is always a large complex project with many moving parts For the first 90 days the work is to align all internal stakeholders ndash from Engineering to Marketing The goal is to make sure that every customer touchpoint is seamless
If a customer starts filling out a loan application online at home one evening puts it down and then walks into their bank branch the next day they should be able pick up where they leave off
Change management support can make a digital transition go smoothly
Itrsquos an excellent idea to engage a professional consultant experienced in shepherding organizations through the dynamics that happen with these kinds of shifts
Endangered Species The Threat to Community Banking | Biz2Xcom | 17
Post-transition the CBFIrsquos secret weapon becomes magnified exponentially
More customer touchpoints mean more time and opportunities to devote to customer retention as well as space to figure out how best to deploy this new wealth of customer data and freed-up in-house resources
That ldquoget to know you in personrdquo quality ndash paired with a digital + human origination process ndash can become a real sustainable ace in the hole
This kind of CBFI wonrsquot just survive It will thrive
Endangered Species The Threat to Community Banking | Biz2Xcom | 18
Thrive with the AI-drivenlending platform
Learn more atBiz2Xcom
copy Biz2X by Biz2Credit 2019 All rights reserved
Post-transition the CBFIrsquos secret weapon becomes magnified exponentially
More customer touchpoints mean more time and opportunities to devote to customer retention as well as space to figure out how best to deploy this new wealth of customer data and freed-up in-house resources
That ldquoget to know you in personrdquo quality ndash paired with a digital + human origination process ndash can become a real sustainable ace in the hole
This kind of CBFI wonrsquot just survive It will thrive
Endangered Species The Threat to Community Banking | Biz2Xcom | 18
Thrive with the AI-drivenlending platform
Learn more atBiz2Xcom
copy Biz2X by Biz2Credit 2019 All rights reserved
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