Investors Bank in New Jersey is the latest traditional financial institution to embrace the online origination of loans.
The $27 billion-asset unit of Investors Bancorp announced a partnership Sunday with OnDeck Capital that will focus on digitizing the process of applying for small-business credit. Financial terms were not disclosed.
The bank’s online loan platform is expected to launch for a small group of customers later this year, and to roll out to additional existing and prospective customers in phases. Investors Bank customers will be able to complete an application in minutes and receive funding in as little as one business day, the two companies said in a press release.
“Investors is always looking for better ways to serve our customers,” Bill Brown, the chief retail banking officer at the Short Hills, N.J.-based company, said in the release. "In the case of our small and medium-sized businesses, we believe developing easier, faster access to credit products is essential.”
As of June 30, commercial loans accounted for 72% of total loans at Investors, which has 147 branches in New York and New Jersey.
Investors will set the underwriting criteria for the loans and assume all of the credit risk, according to Brian Geary, who is president of ODX, the OnDeck subsidiary that handles bank partnerships.
OnDeck, a New York-based company that also offers loans to small businesses directly through its own website, has played the same role as a technology provider in its agreements with other banks.
OnDeck
