Core banking vendor Misys has launched a crowdlending module to make it possible for financial institutions to move into the alternative finance marketplace.
FusionBanking CrowdLending is born out of the Misys FusionReactor innovation lab and provides a white-label platform which enables banks to bring lenders, including individuals, asset managers and banks, together with borrowers of all sizes. It has its goal set on innovating and digitalising traditional lending.
By embedding crowdlending in the overall credit lifecycle, a bank can maintain and expand its client base, no longer necessitating them to to turn away those they otherwise wouldn’t fund.At the same time, loans are originated off balance sheet to diversify risk.
The agile cloud-based platform is built on the Misys FusionFabric architecture. The new platform serves to originate peer to peer commercial loans. It is available pre-integrated with Misys FusionBanking Loan IQ for servicing resulting syndicated loans. It can also be integrated into other existing servicing platforms.
According to Misys, the package will also help banks to recapture business lost to alternative loan origination vehicles. Simon Paris, president at Misys, said in a statement:
Alternative finance has made its mark. 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.
According to estimates by Morgan Stanley, P2P lenders could originate up to $490 billion in loans globally by 2020.
