How could we build a small business lending platform that anybody could use?
That is the driving thought that led Sherif Hassan to form fintech Capiform, and the timing could not be better.
That's because, with the Covid-19 pandemic and the ensuing recession, suddenly credit unions are awash with savings deposits (as investors flee equity markets) and they also see a rush of loan applicants, for everything from Covid-19 triggered SBA loans through equipment leases.
How to efficiently handle this small business loan application volume?
Know that right now deposits are arriving at much large volume than are loans at credit unions - despite the needs of small business members.
Remember, too, mega banks, for the most part, have scant interest in "small" business loans which to them often means dollar amounts under $250,000. But to a typical credit union that size small business loan is ideal.
But the mega banks shy away from those loans because they don't see how to make money on them.
How could a credit union hope to commit to these main street businesses? That's where Capiform's digital lending platform come in, where the borrower is able to self direct through the process and that's augmented by digital services (that verify business revenue, complete know your customer (KyC) , and know your business (KyB processes, etc). Much of the small business underwriting process is automated. According to Hassan, using Capiform, a credit union could easily process 10X more small business loans, maybe 20X, daily without stressing staff who would engage only in higher level tasks such as verification and loan approval.
Adds Mr. Hassan, "Capiform’s Lending-as-a-Platform empowers you to scale your lending portfolio immediately, configure underwriting instantly and deploy new compliance & product guidelines."
You bet and the timing is so right.
In this podcast you will hear about how the Capiform tools were developed, what they do and how, and the real benefits they could bring your credit union.
Sherif Hassan is a recognized member of the financial technology community and is at the forefront of business process architecture. Tasked to create a funding advisor program, Sherif helped build an alternative business lending startup into the industry’s first publicly traded company, contributing over $400 million of the company’s first $1 billion in sales. Mr. Hassan has trained more than 10,000 professionals in over 500 sales offices nationwide.
Mr. Hassan is regarded a thought-leader and has been invited to address such topics as product development, underwriting algorithms, fraud and the future of credit. Sherif has been granted several copyrights for his works on Alternative Lending.