LendProtect and Engaged partnered on short-term and installment lending for the underbanked consumer. LendProtect is the leading provider of real-time underbanked consumer data and risk scoring solutions and Engaged CRM is a secure loan sourcing platform built specifically for the financial sector. LendProtect has offered specialised credit risk data in the UK longer than any other company in the industry. The company provides real-time data regarding loan performance, payments, consumer stability and employment, which is not available from the mainstream credit reporting agencies. The data is analysed in order to provide instant lending decisions using a proprietary comprehensive scoring platform. LendProtect also provides instant, secure access to a prospect’s electronic banking statement which is instrumental in providing a more accurate affordability assessment. Consumers also benefit by receiving access to additional borrowing options.
LendProtect UK underbanked consumer data, analytics and risk scoring solutions on those who are underserved by traditional banking channels in the UK, announces today a partnership with Yodlee Interactive to launch a new service, BankLogic. BankLogic is a platform that enables lenders to seamlessly access bank account information from LendProtect — account ownership, deposits, transaction details and balances — to more accurately evaluate a borrower’s credit risk. Utilising BankLogic, lenders are able to see 90 days of their prospective customers’ banking behaviours, including all deposits and individual transactions to payees. This additional information allows lenders to more concisely evaluate risk involved in the short term loan offering, lower the risk of the loan going into default, more accurately assess affordability for the consumer and increase conversion and profitability.
FactorTrust underbanked consumer data, analytics and risk scoring solutions on those underserved by traditional banking channels announces a new relationship with InstaLoan, one of the fastest growing consumer loan companies in the U.S. Utilizing FactorTrust’s proprietary data and custom scoring models, InstaLoan can now better qualify customers, providing each individual with the best, most customized type of loan for their personal situation. FactorTrust has been providing alternative credit data, analytics and risk management solutions regarding consumers that lack traditional credit options for short-term lenders since 2005. The company has millions of data points on this consumer segment and works with its customers to provide instant and informed lending decisions utilizing its comprehensive scoring platform.
FactorTrust underbanked consumer data, analytics and risk scoring solutions announced a joint initiative with FICO predictive analytics and decision management technology. The companies plan to work together to develop new credit risk assessment models for lenders looking to better serve underbanked consumers. With the addition of FactorTrust’s alternative data to the risk assessment, lenders will be able to assess the risk of consumers who may have a thin credit bureau file, or none at all – potentially leading to greater access to credit for the underbanked segment of the population. The FactorTrust database of underbanked consumer loan performance uses best-in-class third-party data sources and contains more than 100 million distinct transaction records covering all phases of the consumer credit lifecycle, updated in real-time.
First Union, the nation’s sixth largest bank holding company and third largest cash management provider, and Derivion, the leading application service provider that delivers comprehensive e-billing solutions designed for the Internet, announced this morning a joint initiative to bring e-billing services to the business-to-business market.
! Derivion and First Union will work together to apply their significant experience in business-to-consumer (B2C) transactions to address the complex needs of B2B clients. The agreement will leverage Derivion’s own technology and First Union’s superior multi-channel distribution and payment network to provide an unmatched opportunity to reach new customers in the growing B2B e- commerce marketplace. The B2B e-billing solution will feature workflow and approval management; analysis and reporting; dispute resolution; and payment authorization and initiation.
“The decision to market Derivion’s B2B e-billing application to the commercial market is in direct response to the increasing demand for Web-based solutions that cut costs and create new business opportunities,” said Alison Quigley, First Union Vice President of Global Electronic Payments. “Given our success with Derivion’s B2C e-billing solution for our midsize to small billers, selecting them as our B2B solution provider was a natural extension of our strategic partnership and an integral part of our commitment to create enduring value for all of our clients.”
According to Gartner’s recent biller survey, 70 percent of billers expect banks to take a leading role (25 percent said because of trust) in the e- billing marketplace but also found that 70 percent of billers trust banks and non-banks the same with their business. “Expectations for banks to provide the latest e-billing innovations have sharply risen while competition for e- billing solutions are applying strong pressure for financial institutions to take the lead quickly,” said Avivah Litan, research director, Financial Systems Payment Services. “First Union and Derivion will together offer a cost-effective, flexible solution for the B2B e-billing market, which according to Gartner research, is outpacing the consumer market. Billers are transitioning their B2B business from a limited set of EDI-based invoice solutions to a wider set of solutions that operate on the Internet.”
With Derivion’s unique ASP model, First Union will offer its clients a powerful alternative to costly in-house e-billing solutions. First Union’s B2B clients will be able to transition to an e-billing system designed specifically for B2B interactions in as little as 60-90 days with maximum control for the biller and their customers.
“By embracing our industry-defining B2B solution, First Union has reinforced its confidence in our e-billing solutions and validated Derivion’s ability to expand its technology beyond the B2C market,” said Dushyant Sharma, president and CTO of Derivion. “Together, First Union and Derivion are targeting the rapidly increasing commercial market segment by leveraging core competencies to provide an e-billing solution that specifically addresses the demands of the B2B environment.”
Derivion’s full-service solution includes the design and presentation of online invoices, online communication and payment capabilities, and strategic support to launch and promote customer enrollment in the new service. To address the unique B2B invoicing issues, sophisticated features include line item dispute, online negotiation and approval, and integration into both biller and buyer accounting applications that streamline invoicing functions, speed up payments, and strengthen the relationship between billers and buyers.
“Since our partnership was established early this year, Derivion and First Union have been working to supply e-billing solutions for multiple First Union B2C customers including Baltimore Gas & Electric and Service Electric Cable TV and Communications,” said Greg Rable, CEO of Derivion. “This next phase in our relationship taps a market ripe for an e-billing solutions provider that has the experience and resources to handle the complexities of the B2B interface.”
Gartner reports that B2B e-commerce will be a $7.3 trillion market by 2004 with e-marketplace transactions expected to account for more than one-third of the B2B market. As B2B commerce continues to grow, so will the need for expediting the settlement of transactions. Businesses are increasingly turning towards e-billing as the means to manage this challenge and thereby improve overall customer satisfaction.
About First Union
First Union, with $258 billion in assets and stockholders’ equity of $14 billion at June 30, 2000, is a leading provider of financial services to 15 million retail and corporate customers throughout the East Coast and the nation. The company, with headquarters in Charlotte, North Carolina, operates full-service banking offices in 12 East Coast states and Washington, D.C., and full-service brokerage offices in 41 states and international offices worldwide. Online banking products and services can be accessed through [http://www.firstunion.com].
Derivion is the first e-billing ASP that fully leverages the flexibility and power of the Internet to automate the bill delivery, payment, and customer care processes for companies driven by recurring billing such as telecommunications, utility, insurance, and financial services companies. Derivion(R) inetBiller(SM) service provides complete e-billing implementation including electronic bill design, e-mail notification, bill presentment, payment processing, enrollment marketing, and customer care for the B2C and B2B environment. These capabilities provide clients with a competitive advantage, enabling them to make bill delivery and bill payment simple and convenient for their customers and providing a path to e-bill consolidation at consumer access points as needed. The Atlanta-based company was founded in 1998 and maintains research, development, and additional sales offices in Toronto, Canada. For more information about Derivion, please visit [http://www.derivion.com].
Derivion Corporation, an innovative new company that is developing a patent-pending Web-based electronic bill presentment and payment (EBPP) service targeted initially at mid-tier utility and telecommunications businesses, has won the support of Atlanta-area high-tech investors.
Entrepreneurs Gregory J. Rable and Andrew Wexler of Atlanta and Dushyant Sharma of Toronto formed Derivion. Based in Atlanta with research and development in Toronto, Derivion’s Web-based system brings together a wide range of services so consumers can easily view and pay bills online.
Consumers will be able to have their bills presented and pay them from a Web-based application through their Web browser. Derivion will initially market the Web service to “mid-tier” billers such as regional electric, gas, water, telecommunications or cable companies.
The initial round of funding was completed last week, said Rable, Derivion’s Chief Executive Officer. The source of the funding is what Rable described as a group of seasoned Atlanta investors.
Among the key investors are Bert Ellis, Chairman and CEO of Atlanta-based interactive media company iXL Enterprises. Ellis also is a member of the board of Atlanta-based Internet health care portal WebMD.
Other key investors include Boland T. Jones, Chairman and CEO of Premiere Technologies, and Rex Fuqua, Managing Director of Fuqua Ventures. Both Jones and Fuqua were early financial backers of hot Atlanta Internet companies iXL and WebMD.
Also investing in Derivion are Sergio Zyman, consultant and formerly Chief Marketing Officer for Coca-Cola Co., and Ashish Bahl, Senior Vice President of iXL’s financial services group.
“We’re very excited about the momentum that this first round of investment has given the company and about the caliber of the investors,” Rable said. “We envision 1999 as a positioning year for Derivion, and expect the Year 2000 to be a break out year.”
Ellis, CEO of iXL, noted that, “We think that Web-based EBPP technology is going to be the next wave in the evolution of electronic commerce. Getting in on the ground floor with a company like Derivion is a no-brainer for mid-tier billers and service providers. We think that they will find the cutting-edge, flexible technology on which Derivion’s EBPP product is built very attractive.”
Ellis added that, “iXL plans to incorporate Derivion’s EBPP strategies with some of our major clients.”
Sharma, the Toronto-based President and Chief Information Officer of Derivion, explained that, “The biggest challenge for companies offering EBPP solutions is to integrate them with the billers’ existing systems and processes. Derivion is offering a unique ‘self-learning’ EBPP system, so billers can easily ‘train’ the system to meet their unique requirements for bill presentation. Billers are welcoming this approach.”
There are two primary beneficiaries of the Derivion service. First, there are people who use it to view and pay bills. Second are the companies who will reap a substantial cost reduction for the Web-based service and, at the same time, improve customer service and customer retention, and provide new cross-marketing channels.
“We will provide our mid-tier corporate customers with the most cost-effective, efficient service to serve their customers better, and they will be able to implement the service quickly,” said Rable. “For example, it costs companies up to $2 to deliver a single monthly bill to a customer. We will do the job better on the Internet for less than one-quarter of that, allowing that savings to drop back to the biller’s bottom line.”
Rable and Sharma met while employed by InterTrans, a software company that was acquired in 1998 by i2 Technologies. They recruited Andrew Wexler, an accountant in the Atlanta office of Arthur Andersen, to join them in the venture as Chief Financial Officer.
Joining Ellis, Jones, Fuqua, Zyman and Bahl as members of Derivion’s board of directors are John Collins, Chairman and CEO of the Intercept Group; Rodger Johnson, an Atlanta high-tech veteran and President and CEO of JKC Holdings, and Robert Jetmundsen, Managing Director at Morgan Keegan, Inc.
Derivion’s product incorporates accepted industry standards, including the Open Financial Exchange (OFX) protocol for secure financial transactions.