Digital Mission

Accelerated Banking

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Open Banking Business Model Innovation

Intermediation of Alternative Sources of Capital

Current Situation

Today’s traditional credit models limit the banks’ ability and appetite to extend credit to SMEs and high-risk borrowers because of strict regulatory requirements. As a result, SMEs don’t have access to sufficient funding. Banks are underserving this market, causing alternative sources of funding such as venture capital and crowdfunding to arise.

Goals and Objectives

  • Participate in the growth of the crowdfunding and venture capital markets.
  • Expand client base and move into new markets.
  • Close the SME funding gap.
  • Establish new relationships with customers to open up new opportunities as they grow and require more complex lending requirements.
  • Provide new investment opportunities to fund the platform off-balance sheet.

Technology Deployed

  • New settlement platforms
  • Cloud
  • Digital platforms
  • APIs
  • New risk scoring models

Use Case Summary

As an intermediary for alternative sources of capital, banks can originate loans off the balance sheet with the associated risk diversified among a crowd of investors. Cloud-based platforms can be quickly deployed and scaled, such as crowdfunding platforms. These platforms work in partnership with existing fintech platforms or bank-owned or white-labeled platforms.

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