ProfitStars' Commercial Lending Center Meets Financial Institution Demand for Digital Lending Platform
-- 24-hour portal expands traditional lending options for 50+ financial institutions, channels more than $335 million in commercial loans in first year --
MONETT, Mo., May 24, 2016 /PRNewswire/ -- Jack Henry & Associates, Inc. (NASDAQ:JKHY) is a leading provider of technology solutions and payment processing services primarily for the financial services industry. Its ProfitStars® division announced today several milestones for its Commercial Lending Center™, a hosted portal offering an expedited online loan application and management workflow experience to business borrowers.
Recent studies suggest that as much as one-third of a financial institution's revenue could be at risk if it does not implement digital lending technologies. With approximately 1,300 companies offering alternative lending products in the United States, incorporating a digital lending platform is becoming a necessary step toward providing services that attract and sustain business relationships.
ProfitStars introduced Commercial Lending Center last year to help financial institutions more effectively compete with the speed and convenience boasted by alternative lenders. It has since partnered with more than 50 banks and credit unions to launch the portal, with 20 of those institutions already live. The clients running Commercial Lending Center today have channeled more than $335 million in commercial loans during the first year.
Another $28 million was referred to ProfitStars' LendingNetwork®, which offers financing from a group of more than 100 of the most dedicated, responsive alternative commercial providers in the industry. For applicants who fail to meet financial institutions' predetermined underwriting guidelines, Commercial Lending Center allows the institution to automatically refer them to the LendingNetwork marketplace for viable, alternative loan options. Commercial borrowers find support through creative funding strategies while the financial institutions can continue to help the business grow without the risk of losing the overall relationship. When the business is credit eligible, the institution can bring it back with no early payment or breakup fees.
Blue Ridge Bank and Trust Co. in Independence, Mo. implemented Commercial Lending Center to provide better loan services to business customers and assist those who might not meet the bank's traditional guidelines for loan qualification. Yvonne Hall, senior vice president of the bank, explained, "Our loan applicants are no longer limited to the typical 9-to-5 timeframe, and now receive a quicker turnaround on their inquiries. Plus, we have the assurance that alternative lending sources are made available to them if needed – and orchestrated by us. Once requests become loans, we have been able to drive better business development tracking and pipeline reporting. Commercial Lending Center is more than an online loan inquiry center; it is our bank's central hub for accurate loan data and funding information."
Russ Bernthal, president of ProfitStars, added, "These strong results from the Commercial Lending Center are evidence of businesses' demand for a fast, easy and efficient loan application process. Business owners who need quick loan approvals commonly turn to alternative lenders to meet those immediate needs. Now, financial institutions like Blue Ridge Bank and Trust can strengthen relationships with community business owners by providing them fairly priced loans quickly and securely."
ProfitStars' Commercial Lending Center enables financial institutions to accept commercial loan applications online, 24/7. ProfitStars hosts individually branded portals, accessible on each institution's website. A sorting engine routes submitted applications to the appropriate loan product based on institution-defined criteria; it suggests options for the financial institution to pursue while simultaneously communicating results to the applicant. Commercial Lending Center allows management to monitor the entire loan workflow, resulting in a superior customer experience. Borrowers get answers sooner and loans originate faster as the streamlined process expedites requests to closing.
About ProfitStars
As a diverse, global division of Jack Henry & Associates, Inc.® (JHA), ProfitStars® combines JHA's solid technology background with the latest breakthroughs in six performance-boosting solution groups – Financial Performance, Imaging, JHA Payment Solutions, Information Security & Risk Management, Retail Delivery, and Online & Mobile. Explore the power of ProfitStars-enhanced performance at www.profitstars.com.
About Jack Henry & Associates, Inc.
Jack Henry & Associates, Inc.® (NASDAQ:JKHY) is a leading provider of technology solutions and payment processing services primarily for the financial services industry. Its solutions serve almost 10,800 customers nationwide, and are marketed and supported through three primary brands. Jack Henry Banking® supports banks ranging from community banks to multi-billion dollar institutions with information processing solutions. Symitar® is a leading provider of information processing solutions for credit unions of all sizes. ProfitStars® provides highly specialized products and services that enable financial institutions of every asset size and charter, and diverse corporate entities to mitigate and control risks, optimize revenue and growth opportunities, and contain costs. Additional information is available at www.jackhenry.com.
Statements made in this news release that are not historical facts are forward-looking information. Actual results may differ materially from those projected in any forward-looking information. Specifically, there are a number of important factors that could cause actual results to differ materially from those anticipated by any forward-looking information. Additional information on these and other factors, which could affect the Company's financial results, are included in its Securities and Exchange Commission (SEC) filings on Form 10-K, and potential investors should review these statements. Finally, there may be other factors not mentioned above or included in the Company's SEC filings that may cause actual results to differ materially from any forward-looking information.
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SOURCE Jack Henry & Associates, Inc.
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