Cross River has partnered with PeerIQ to offer ‘enhanced’ risk management and transparency tools to marketplace lending.
The financial services company said it has formed a strategic partnership with PeeriQ, a consumer loan data analytics provider, to streamline capital sourcing between non-bank lenders and institutional loan buyers.
It will combine its capital, technology, and robust regulatory compliance processes with PeerIQ’s risk management platform, loan/borrower data sets, and data verification. This will enable community banks and other loan buyers to more easily access the sector according to the company.
“Cross River is a major hub for the entire marketplace lending sector and a natural partner for PeerIQ,” added Ram Ahluwalia, CEO of PeerIQ. “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.”
Backed by investors such as Battery Ventures, Ribbit Capital and Andreesen Horowitz, Cross River looks to utilise leading technologies to streamline the movement of capital in a manner that meets the stringencies of the FDIC regulatory and compliance framework.
The firm provides a full suite of sourcing initiatives for the sector, including partnering on loan origination, extending warehouse lines and placing secondary loan pool sales—often to other community banks looking to access loans.
Based in New York, PeerIQ aggregates and validates data from numerous sources, combining the data with cash flow analytics, portfolio management tools, reporting services, and independent views on risk so clients can optimize their portfolios and transact with confidence. As part of its offering, the company executes Reg AB II compliant remit reports for servicers, custodians, trustees, issuers and noteholders.
Geoffrey Kott, EVP, head of finance and strategy at Cross River, added: “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.”
Copyright © 2018 RegTech Analyst
Copyright © 2018 RegTech Analyst
