Opus Bank in Irvine, Calif., is the latest bank to partner with an online lender, announcing an agreement Thursday to refer certain small-business customers to OnDeck Capital.
Under the deal, the $6.2 billion-asset bank will refer small businesses that are looking for financing of up to $500,000 to New York-based OnDeck, according to a press release from Opus. Financial terms were not disclosed.
Opus Chief Executive Officer Stephen Gordon said in the press release that the referral agreement will generate additional revenue without using the bank's balance sheet or capital. Opus operates 58 retail banking offices in California, Arizona, Washington and Oregon.
While Opus receives a "significant amount of inquiry for small business loans" through its retail bank, Gordon said, "OnDeck has proven to be much more proficient in underwriting and funding these smaller loans."
OnDeck, which specializes in online small-business lending, originated $483 million in loans during the third quarter of 2015. JPMorgan Chase and BBVA Compass are among the banks that have entered into partnerships with the company.