Fintech SME lender OnDeck have announced stunning numbers for the first half of 2021, with a 175% increase in broker-originated loans.
OnDeck also increased their average loan by 20%, from $52,000 to $62,000, with their new tech, the KOALA score, allowing them to get to approval more quickly.
KOALA is an assessment software that allows OnDeck to approve loans in as little as two hours, a feature they call Lightning Loans, which are available unsecured and up to as much as $100,000.
KOALA, short for Key Online Australian Lending Algorithm, analyses bank statements from small businesses and uses risk management tech to fast-track decisions without underwriting.
SMEs with simple criteria can gain approval in as little as 90 minutes, allowing brokers to focus their time on more complicated deals.
“The great thing about Lightning Loans is that customers get a decision more quickly than usual,” said Cameron Poolman, CEO of OnDeck. “If the loan is up to $100,000, over half of the customers are getting a decision in less than two hours, so it’s really quick.”
“Brokers love that, because they want to know if their customer can get funded quickly, otherwise they need to suggest an alternative. Brokers provide a great service because it’s no longer one size fits all: if they want equipment finance, they’ve got a choice, if they want debtor finance, they’ve got a choice, and if they want unsecured finance, that’s where OnDeck fits in.”
“Lightning Loans is distinguishing us from the rest of the market,” added Poolman. “A Lightning Loan doesn’t have underwriter involvement.”
“It’s through the analytics, the KOALA score, and through process. About 65% of our loans are decisions under $100,000 where there’s no underwriters involved, and that allows up to be really quick, because it’s a process rather than a qualitative decision.”
