From alternative credit data to automated underwriting, this Market Map looks at the lending tech companies streamlining the underwriting process for lenders, banks, and non-financial institutions.
Loan underwriting is a slow and complex process, due to insufficient data for credit scoring, stringent risk management requirements, and highly manual processes.
Fraud is also a concern. For example, 2020’s Paycheck Protection Program (PPP) dealt out upwards of $117B in loans (15% of the total) to businesses that didn’t actually qualify.
This has cleared the way for new tech solutions that can effectively reduce costs and risk, while also improving speed.
These technology providers are helping financial and non-financial institutions simplify loan underwriting procedures and mitigate default risks. These solutions include AI and machine learning (ML) algorithms that use alternative data to score and assess creditworthiness.
Using CB Insights data, we identified 91 digital lending companies addressing 6 technology priorities for lenders, banks, & non-financial institutions throughout the underwriting process.
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