Dorado.Com this week went to the
venture capital bank securing $15 million in expansion round funding from
Crosspoint Venture Partners and Palomar Ventures.
The e-finance ASP intends to put the money to work to offer financial
institutions a better way to do business on the Web. Dorado.Com plans to
launch a mortgage application service that allows financial institutions to
originate and transact home loans over the Internet.
The venture funding will be used to expand operations, hire additional
engineering and sales staff, and to initiate an aggressive marketing
campaign. With its stash of cash at hand, Dorado.Com intends to soon be a
leader in the rapidly growing e-Finance market.
Dorado.Com’s timing is perfect, because banks will be scurrying for a way
to compete with Microsoft’s (MSFT)
HomeAdvisor loan services set to launch from its MSN interface.
Meanwhile, Indiana-based technology solutions firm Baker Hill is targeting financial
institutions desiring to Web-enable small business credit services. Baker
Hill’s Bank2Business.com
Internet-based small business credit product service is scheduled to launch
in April.
Bank2Business.com lets financial institution’s offer small business
lending, predictive credit modeling, and compliance documentation services
for an undisclosed per transaction price. Automated underwriting is the
first of several Bank2Business.com features set to revolutionize the small
business loan process.
Bank2Business.com utilizes Internet technologies to dynamically manage the
small business loan application process from inception through document
preparation. Baker Hill serves as the ASP responsible for all hardware,
software and support, which minimizes banks up-front investment for the
service.
According to Mark Hill, president of Baker Hill, competitive pressures are
forcing banks to evaluate ways to streamline and improve loan processing,
while minimizing risk to loan portfolios. Bank2Business.com allows
financial institutions to efficiently process small business loans while
expanding delivery channels for banks credit services.
Bank2Business.com accepts applications from within the bank or directly
from customers through the bank’s web site. The application is forwarded
for decisioning by conducting a fraud check, requesting credit bureau
reports, and generating a credit score using Fair, Isaac and Company’s (FIC)
Small Business Scoring Service (SBSS) models.
Customizing the bank’s defined underwriting parameters, Bank2Business.com
prices the loan and delivers the complete package back to the lender or
underwriter for review in a matter of minutes. Baker Hill predicts that
banks save 25 to 75 percent in underwriting costs by streamlining and
automating their underwriting process online with Bank2Business.com.
Few banks are currently accepting small business loan applications at their
Web sites. Baker Hill is banking that financial institutions accept its
core technology as a one-link means to expand their small business loan
processing services on the Web.
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https://www.internetnews.com/ec-news/article/0,,4_322201,00.html
