The American Bankers Association (ABA) – through its subsidiary the Corporation for American Banking – has endorsed Banker Office, the business valuation platform and performance service from BizEquity, the world’s largest and only patented provider of private company business valuation using big data.
BizEquity was selected for this exclusive endorsement by the ABA only after a comprehensive due-diligence process, as well as a rigorous review by industry experts and field-testing by bankers to meet stringent customer-service standards. To earn the endorsement, BizEquity was required to meet ABA’s quality standards and satisfy key criteria, including the company’s management strength, sound risk management and security practices, and superior customer support.
Banker Office will help banks under pressure from the rapid rise in recent years of largely online alternative lenders, which are targeting small businesses. The loan books of online lenders have been growing by an estimated 175 percent a year and peer-to-peer (P2P) lenders and online platform business (OPB) based lending have emerged as strong competitors for banks in the SMB arena. Online lenders have been creating greater competition for traditional banks – for example, P2P platform is expected to reach $350 billion by 2025.
Banks now have a way to better compete because Banker Office provides them with a dedicated platform, which harnesses sophisticated algorithms and big data knowledge. This enables them to provide their clients with real-time insight into the fundamental question about their business, what it is worth. This knowledge offers banks new opportunities to begin conversations with potential clients and prospect smarter for lending business as well as other services, armed with current valuations on their companies.
BizEquity is the largest global provider of Business Valuation knowledge and currently works with over 90 financial institutions. These include US Metro Bank, Dynasty Financial Partners in New York, and one of the UK’s largest wealth management firms. To date the company has valued over 29.4 million private businesses. More information of BizEquity's new Banker Office product, created for bankers to better care for and prospect to business owners and entrepreneurs, can be viewed at: BankerOffice.BizEquity.com
The business valuation market in the U.S. is expected to reach $7.4 billion, with no single firm having more than a 3% market share, according to IBIS World. Traditionally the business valuation process has been done offline, with costly and time-consuming processes. BizEquity is transforming this market and the Banker Office product will enable US banks to capitalize on this significant market opportunity.
During a 12 month period, investments in the global FinTech sector tripled from $4.05 billion in 2013 to $12.2 billion in 2014. BizEquity is an excellent example of this fast-paced expansion and is one of the fastest growing big data products on the market today. The business valuation market offers significant opportunity with 200 million businesses worldwide. Currently, over 98% of these businesses fail to value themselves annually, largely due to time and cost constraints. Business valuation is an emerging practice area that bankers are adding to their service offerings to better serve their existing client base.
Bryan Luke, chairman of ABA’s Endorsed Solutions Banker Advisory Council and president and COO of Hawaii National Bank, commented: “Our Council identified a major need to help our members get closer to small businesses and to help prospect for business lending opportunities. After researching the industry leaders, ABA selected BizEquity, who has proven expertise in the business valuation and private company performance space.”
Michael M. Carter, Founder and CEO of BizEquity, commented:
"We are very honored to be the only business valuation and performance service endorsed by the ABA. ABA has always stood for innovation and support for our nation’s backbone of lending, the nearly 6,000 community banks and the small businesses they serve. With discounted access provided to members of the ABA to the Banker Office service created by BizEquity, we are helping to democratize essential knowledge in the lending process to help community banks compete with online lenders through leveraging big data technology that can help foster engagement with business owners."
Tom Petro, CEO of Fox Chase Bank, Hatboro, Pa., commented: “As a CEO, I have great interest in leveraging technology to help my commercial lending team gain a competitive advantage in a crowded and noisy market. BizEquity provides a unique way to see a business through the eyes of the owner by understanding the value of the firm and the key levers that drive increased valuation. Having worked with it at my bank I introduced BizEquity to the ABA. I believe it is a service that commercially focused community banks can leverage for growth, and it is a true value-add for the businesses they serve.”
Contributed | what does this mean?