Mbanq Debuts AI-Powered Loan Origination Platform Comet

Banking technology company Mbanq has debuted Mbanq Comet, an AI-powered digital loan origination platform.

Comet integrates with core banking systems and is designed to allow banks, credit unions and FinTechs to streamline their loan decision process without interrupting their existing operations, according to a Monday (Nov. 25) press release.

“Mbanq Comet is a vital tool for financial institutions looking to modernize their lending process,” Lars Rottweiler, chief technology officer at Mbanq, said in the release. “Its rapid deployment, compatibility with any legacy system, and advanced AI-powered tools make it a cornerstone of digital transformation in the financial industry.”

In addition, Comet enhances the borrower experience with “a fully digital and user-friendly lending journey,” per the release, with credit scoring and risk assessment capabilities that comply with regulations such as ECOA and UDAAP.

“Additionally, the platform’s automation tools reduce operational costs while maintaining top-tier security and compliance standards,” the release said.

As PYMNTS wrote earlier this year,  AI-powered loan decisioning tools “are becoming the new norm,” and have started to transform the way working capital and financing are extended to small and medium-sized businesses (SMBs).

“AI has introduced a data-driven paradigm into the lending landscape, replacing subjective evaluations with objective analyses of vast amounts of information,” that report said. “Machine learning algorithms now assess a multitude of factors, including financial history, credit scores and business performance metrics, to make lending decisions.”

And in many ways, this shift has turned character-based lending into something of a dying art, at a time when SMBs can’t easily get loans, even smaller ones, as Galileo Financial Technologies Chief Product Officer David Feuer told PYMNTS in an interview last year.

“Banks are becoming increasingly sophisticated in their use of data and their use of AI to make intelligent decisions about who to make their offers to,” Feuer said.

One of the benefits of AI-powered loan decisioning tools is their speed and efficiency, that report noted. Traditional character-based lending often involved long evaluations and personal interactions, which could cause delays in accessing much-needed working capital.

“AI enables quick and automated assessments, providing SMBs with timely financing solutions to support their growth and operations,” PYMNTS wrote.

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