The financial industry, once a symbol of stability and predictability, is now in the throes of a major transformation. Traditional banking structures, long considered the bedrock of this industry, are now being challenged by alternative solutions armed with cutting-edge technology and customer-centric approaches.
This trend signifies more than just a change in processes. It’s a groundbreaking shift, disrupting the very foundations of the financial industry’s structure and leading the charge toward a more efficient future.
Right at the epicenter is iBusiness Funding, a loan software and lending service provider opening doors of the lending sector for businesses that have historically been marginalized.
Under the leadership of Justin Levy, iBusiness Funding has revolutionized the Small Business Administration (SBA) lending industry by catering to the needs of small and medium-sized businesses. By focusing on these enterprises, the company is addressing a critical challenge in the industry, namely the intricacies of loan approval that smaller ventures—especially those owned by women, minorities, and veterans—have to face when seeking much-needed capital.
Despite these challenges, however, Levy highlights that while it’s easy to blame banks and other lenders for the inefficiencies in the industry, the real culprit one should be pointing the finger at is within the system itself.
“The established process has worked great so far in determining prudent lending decisions. The main issue is that it takes too long,” says Levy.
Over the past years, most FinTechs and other companies in the sector—primarily fin-techs—have made numerous attempts to “fix” the business lending space by introducing solutions that aimed to change the entire process. Additionally, some have also proposed that if enough data points are analyzed, it could lead to a ‘single score’ that would help lenders make sound lending decisions.
But Levy believes that this kind of complete overhaul is unnecessary. Rather than upending the traditional lending process, he thinks it can be revolutionized by embracing its strengths and improving upon them.
And so, recognizing the value of established methods and procedures, iBusiness Funding has adopted a model that doesn’t discard but refines these methods with advanced digital technology for greater efficiency and accessibility.
It is an innovative approach that differentiates iBusiness Funding from many of the FinTech companies out there. While they look to destroy established systems, iBusiness Funding looks to empower them.
“We’re not looking to reinvent the wheel. Our aim is to take what works and make it faster and more accessible to smaller businesses so that they can get the capital they deserve,” Levy asserts.
The bedrock of iBusiness Funding is artificial intelligence (AI). Their suite of lending solutions includes self-service and full-service options for lenders of all capacities who are looking to boost their SBA lending businesses.
The first is the flagship self-service, end-to-end SBA lending software called LenderAI, designed for larger institutions that prefer to handle lending processes independently. It has allowed for streamlined information access regarding loans – from sales and servicing to loan underwriting and closing.
In essence, it’s been a powerful ally for all the larger banks, credit unions, and other lenders to operate in whichever way they deem best within a robust AI-enabled platform that has helped them move faster.
iBusiness Funding’s other product, Lending-as-a-Service (LaaS), further exemplifies its dedication to improving the lending space. With LenderAI technology as its backbone, the full-service LaaS product allows lenders who may not have the resources to run their own SBA division to leverage iBusiness Funding’s technology and staff, which can take over as much of the process on the lender’s behalf as they’d like.
“This solution provides a scaled-down version of our LenderAI software to the lender,” Levy shares. “It provides full transparency on what is done in our client’s stead, and it’s been a valuable tool for countless smaller banks and lenders.”
By integrating AI with traditional methods, iBusiness Funding ensures loan approval is faster and more efficient. It uses LenderAI’s ability to predict necessary documents for loan approval, which can speed up loan processing significantly.
By seamlessly blending modern technology with tradition, iBusiness Funding has positioned itself as a true bridge between the old and the new, bringing the best of the two worlds together. In doing so, the company has fostered a system that’s more efficient and accessible without sacrificing the reliability of existing practices.
As Levy reiterates, “We believe in the strength of the existing financial structures, but also the immense potential of digital tech. Bringing these together means creating a robust and inclusive ecosystem where businesses of all sizes can have better access to the financial resources they need.”