Numerated to Improve Online Lending for Regional Banks
On Wednesday, Numerated announced that it had closed $8 million in financing, bringing its total to $17 million. Numerated is a platform that helps banks make automated credit and lending decisions.
“We’ve seen a tipping point in the market, with banks across the U.S. focused on digitally serving their business segments and out-competing national and global lenders,” said Numerated founder and CEO Dan O’Malley. “And we look forward to continuing to develop a platform that drives real growth for them.”
Like the recently launched ODX, which grew out of OnDeck’s success helping Chase with online lending, Numerated was first developed in 2015 by Eastern Bank to improve its online lending capabilities. In 2017, it was spun out as an independent company by O’Malley, who had been Chief Digital Officer at Boston-headquartered Eastern Bank.
A new investor who contributed to Numerated’s latest round is Raj Date, the founding Deputy Director of the Consumer Financial Protection Bureau (CFPB) and the current Managing Director at Fenway Summer Ventures. Date will also join Numerated’s Advisory Board.
“The industry has been sorely lacking a solution designed specifically for community and regional banks to compete and win against giant global banks and alternative lenders in business banking,” Date said. “Numerated has quickly grown to become the market leader in business lending with its real-time fintech platform, and I look forward to advising the company as it continues its growth.”
While OnDeck’s ODX and Numerated have similar offerings and objectives – to help banks become faster and more competitive online lenders – Numerated’s focus seems to be on servicing smaller regional banks. Some of its clients, according to its website, include Seacoast Bank, Franklin Synergy Bank, Eastern Bank and MidFirst bank.
Meanwhile, ODX services Chase and it announced in October that its first client as an independent entity was PNC Bank.
“We’re looking at the top 200 banks first,” OnDeck CEO Noah Breslow told deBanked in October.
Numerated was launched in 2017 by O’Malley and is based in Boston.Last modified: November 30, 2018
Todd Stone is a reporter for deBanked.