Canadian Imperial Bank of Commerce (CIBC) is partnering with alternative finance startup Borrowell to offer "one-click" online lending for clients.
The Canadian bank says it will use Borrowell's technology and underwriting approach to adjudicate loans for existing clients online in real time, with funds typically issued the next business day directly into a client's CIBC account.
Describing the initiative as a first in the Canadian banking sector, David Williamson, group head of retail and business banking, CIBC, says: "By leveraging innovative technology, we are taking a process that is often viewed as slow and cumbersome for clients and making it much faster and more convenient."
The initiative is launching with loan offers to select CIBC clients. The technology allows clients to apply for a loan of up to $35K using a simplified application process, with the ability to securely upload documents online for verification.
Future plans to extend the borrowing platform to a wider client base will be based on client experience feedback and input from this first phase, says Williamson.
He says the arrangement with Borrowell is in line with the CIBC's commitment to adopt a fintech-first approach to deliver innovative services to clients, pointing to the bank's Global Money Transfer remittance service and a recent agreement with Thinking Capital to accelerate lending in the small business market.
Says Williamson: "Our partnership with Borrowell is based on our shared view that the process for borrowing money for personal banking clients could be improved in the digital age, while retaining all of the prudent risk management criteria you would expect from a major bank."