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Ranqx Attempts To Fix North America’s $1Trillion SMB Credit and Lending Gap

Ranqx officially launches its operations in North America in an attempt to correct the region’s small-to-medium sized business (SMB) lending system. 

As indicated by research from Deloitte, ‘not one traditional US bank has the online capabilities to provide a straight-through small business loan application for either unsecured or secured loans with an instant decision or offer to the customer’.

The digital SMB loan origination, decisioning and monitoring platform now aims to tackle the region’s broken lending system, which is estimated to cost the economy nearly $1trillion each year.

Ranqx offers banks, credit unions and lenders access to the small business API first application process, which can be completed online. The system then digitally underwrites a loan within three minutes by leveraging real-time accounting, financial and credit data.

As such, Ranqx’s platform has the potential to fix a significant issue currently affecting SMB lending across North America.

By providing access to real-time, orchestrated SMB loan origination, data points and automated decisioning, Ranqx hopes to deliver a more practical digital application process for SMBs. For lenders, the system makes it possible to make more accurate decisions for businesses across a myriad of SMB sectors.

The company’s North American launch follows its collaboration with Visa, which will introduce its digital capabilities to its network of financial institutions, while the company has also formed partnerships with fintech start-ups, Uplinq and Mambu to further enhance its service.

This array of partnerships is helping the company to meet its primary objective of providing direct lenders with the tools needed to offer easier access to capital.

Dave Lewis, founder and CEO of Ranqx
Dave Lewis, founder and CEO, Ranqx

Speaking on the launch, Dave Lewis, the company’s founder and CEO, commented: “North American businesses need capital to help power productivity and maintain sustained employment. Digitally efficient solutions, such as ours, offer this in abundance and can play a crucial role in fostering economic recovery in the region.

“Ranqx allows SMBs to gain greater access to finance, while also helping lenders efficiently grow their portfolios within a tight labour market by better understanding the businesses applying for capital.

“It’s not just what we do, or how we do it – it’s the speed that we can offer it. We’re able to deliver fast deployment for lenders, and the fastest access to vital capital for SMBs. We expect this speed to be something of immense value in the North American market. Right now, credit underwriting in the region can take many weeks to complete.

“We’re able to reduce that timeframe down to a couple of minutes, while also providing real-time, granular insights and more accurate underwriting decisions.”

The digital lending platform has already worked with lenders and SMBs in the Asia-Pacific (APAC) region, where the company reports that it has helped to generate loan-related cost savings of “up to 80 per cent.”

The company is currently looking to build on this success and scale adoption across North America, while delivering similar results.

Author

  • Tyler is a fintech journalist with specific interests in online banking and emerging AI technologies. He began his career writing with a plethora of national and international publications.

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