Misys adds crowdlending to core banking package
17 January 2017 | 9436 views | 0
Core banking vendor Misys has launched a crowdlending module to enable financial institutions to move into the alternative finance marketplace.
FusionBanking CrowdLending provides a white-label platform which enables banks to bring lenders, including individuals, asset managers and banks, together with borrowers of all sizes.
Misys says the package will help banks to recapture business lost to alternative loan origination vehicles, no longer having to turn away those they otherwise wouldn’t fund. At the same time, loans are originated off balance sheet to diversify risk.
“Alternative finance has made its mark,” says Simon Paris, president at Misys. “Overall loan volumes are on the up, but a growing and increasingly relevant slice of the market is now being processed by independent P2P providers. With traditional lending vehicles also under pressure from marketplace lenders, banks risk missing out. Our approach enables banks to capture more of the opportunities in this market, and to de-risk, disrupt and quickly grow in this competitive space."
Morgan Stanley estimates that P2P lenders could originate up to $490 billion in loans globally by 2020.
By applying for alternative funding though a trusted bank platform, borrowers can gain access to their bank’s customer network of lenders and investors for fast loan origination and competitive rates, says Paris, while investors benefit from established credit risk processes and bank infrastructure, to minimise potential risk.