Cross River Bank in Fort Lee, N.J., has entered into a partnership with PeerIQ, a provider of consumer loan data analytics, in an effort to streamline capital sourcing between online lenders and institutional loan buyers such as small banks.
The partnership seeks to combine Cross River’s capital, technology, and regulatory compliance processes with PeerIQ’s risk management platform, loan and borrower data sets, and data-verification tools to help community banks and other loan buyers more easily access the online-lending sector, the two companies said in a press release Friday.
“Cross River is continuously investing in internal-facing technology that will enhance our ability to ensure strict regulatory compliance and adhere to consumer protection,” Geoffrey Kott, the head of finance and strategy at Cross River, said in the release. “PeerIQ’s risk management platform — with its leading loan-level analytics and monitoring capabilities, credit facility management toolkit, and full integration of TransUnion data — will both augment our internal capabilities and provide best-in-class loan-level monitoring tools for our clients and partners.”
Partnering with fintechs is nothing new for Cross River Bank, founded in 2008. It has worked with with more than 15 online-lending companies, including Affirm, Borrowers First, Marlette Funding, Rocket Loans and Upstart.
In late 2016 it received $28 million in venture capital funding to expand its support of fintech firms and expand its own technology team.
“Cross River is a major hub for the entire marketplace lending sector, and a natural partner for PeerIQ,” Ram Ahluwalia, CEO of PeerIQ, said in the release. “The risk management and regulatory compliance solutions we’re bringing to market will not only unlock new capital, but hopefully do much to establish best practices in loan-level transparency for the industry.”