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FICO Accelerates SME Loan Decision-making

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FICO is strengthening its position in the corporate underwriting space with a new solution for SME lenders.

The company said Wednesday (April 5) that it is rolling out its Origination Manager Essentials solution for mid-market banks and credit unions. The tool uses data analytics to provide a cloud-based, automated way for lenders to make loan decisions for their small business borrowers. The tool uses FICO’s existing Small Business Scoring Service, the company noted, and allows banks and credit unions to make a loan application decision in as quick as one minute.

“Mid-market lenders play an integral role in supporting small businesses’ growth and development,” said FICO Credit Lifecycle Business Line Vice President Tim Van Tassel in a statement. “With many new entrants providing loans to small businesses, it is crucial that lenders can improve speed and customer service while maintaining strong risk assessment across their portfolios.”

FICO noted that this solution can help these banks compete more adequately with alternative and online marketplace lenders that can similarly auto-approve of an SME loan in a few minutes.

“Origination Manager Essentials delivers banks the same technical advantage so they can compete on experience and relationships rather than technology,” the company said.

Its SME credit scoring solution uses FICO’s own analytics to assess borrowing risk based on both consumer and commercial data sources. The tool also ensures streamlined deployment and integration within banks’ and credit unions’ existing systems.

“Lenders lose out on new customer opportunities when they cannot meet small business borrowers’ requirements for a quick decision,” said Aite Group Senior Analyst Christine Pratt in another statement included in FICO’s announcement. “Origination solutions that speed up decisions while answering the institution’s need for transparency and credit risk management are well positioned to gain happy customers and loan share as the market improves.”

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