Customers Bank taps Funding Circle for Lending-as-a-Service platform
Pennsylvania-based Customers Bank, which provides personal, business and commercial banking services, is adopting Funding Circle’s Lending-as-a-Service (LaaS) platform to expand its lending capabilities for small and medium-sized businesses (SMBs).
Customers Bank embeds Funding Circle’s LaaS platform
The bank says the end-to-end platform will enable it to deliver “affordable term loans” directly to its SMB customers.
The platform incorporates Funding Circle’s loan operations, credit modelling and machine learning technology to allow partners to issue bank-like loans of up to $500,000 within 48 hours.
Funding Circle was recently licenced to offer SBA 7(a) small business loans by the the US Small Business Administration this month.
The licencing expands the online lending platform’s loan capacity up to $5 million, an increase it plans to instate starting in early 2024.
“Our flexible embedded platform enables banks to offer their customers a fully-integrated, digital lending experience without the cost-prohibitive investment and resources required to build or buy their own platform,” explains Kos Joshi, head of partnerships and embedded finance at Funding Circle US.
The integration marks the latest development in Customers Bank’s lending capabilities after it previously selected UK fintech OakNorth’s lending platform for credit monitoring and portfolio management in April 2020.
