With alternative programs abundantly available, small business lending today is much different than in the past. These lending programs provide much quicker approval and funding than traditional lenders, like banks. That’s why JPMorgan Chase, the largest bank in the U.S., recently announced it is partnering with On Deck Capital.
The program will officially kick off in 2016. “It will allow us to do the kind of stuff we don’t want to do or can’t do,” said CEO of JPMorgan Chase Jamie Dimo. The partnership will allow the company to provide real-time approvals and underwrite loans more quickly using the technology developed by On Deck Capital. Speed is the top selling point as these types of loans come at a higher cost than traditional bank loans.
On Deck CEO Noah Breslow says it has plans to work with other banks in the future and has a partnership already established with BBVA Compass. He also thinks partnerships like these will become more common or banks will choose to invest in developing the technology in house.
“Most banking execs now see that lending is moving online. Banks have a choice. They can build their own technology, or they can recognize that companies like OnDeck have already invested in it.”
Feldman, Amy. “Why JPMorgan Chase And On Deck Capital Are Teaming Up To Offer Small Business Loans”. Forbes.com. 12/1/2015.