Most banks find it difficult to offer online account opening or processing business account requests. With that in mind, the outlook looks grim for the biggest stimulus package in history to deliver. 350 billion dollars through the banks, with one week’s notice, to small businesses across the country. Banks have to identify their applicants, award the loan according to their internal rules, then provide the application to the SBA and finally, after approval, disburse the funds. All in compliance with onerous Know Your Customer and Anti-Money Laundering regulations. The 350 billion dollars dries up, but with additional funds expected to be announced, banks must prepare.
This added complexity, with many small businesses being independent contractors with no EINs and inconsistent records to demonstrate payroll. PPP loans to these applicants became available on Friday, allowing qualified applicants to receive a loan of up to 2.5 times their monthly payroll. These loans are crucial for the survival of many small businesses, but lenders must ensure that all loans comply with strict rules. This is a complex and time consuming task that can take weeks to go back and forth.
Crisis often breeds innovation and in less than a week, Fresno First Bank was able to partner with DocFox, a fintech company, to automate the loan application process from its website. As soon as a candidate completes their online form, a sequence of events is triggered, including an automated document analysis and background check. “All of this ensures that the bank receives a full application, eliminating the need for manual work and back and forth,” says the CEO of DocFox, Ryan canin.
“We hired the DocFox team several months ago to help us manage our high-risk, remote customer acquisition strategies, but we quickly realized that their platform could be used for a lot more. The user interface is amazing and really improves our customer experience. When we saw the potential workload associated with the PPP SBA program, DocFox was my first call. They got us up and running in 2 days which is blazingly fast even for the fintech world, and now we have an efficient and agile platform that will help our bank better navigate the banking future “explained Steve miller, CEO of Fresno First Bank.
DocFox is used by over 150 financial institutions to automate their BSA and online account opening processes and leverages this experience to help banks and credit unions streamline their SBA loan applications.
For more information on DocFox and its comprehensive banking compliance technology, visit www.docfoxapp.com or email [email protected]
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