Today, Cloud Lending Solutions, a cloud platform for marketplace lenders unveiled CL Exchange. I spoke to Snehal Fulzele, CEO of Cloud Lending Solutions to learn more about this new product offering. CL Exchange is a marketplace where online lending companies can source borrowers and also trade loan applications among other lenders on the marketplace. This will benefit both borrowers as well as the platforms. Many investors on the platforms are aware of the fact that 90% of loans are rejected for various reasons.
If a platform decides not to underwrite a loan, they can put it on the CL Exchange for other platforms to have a chance to bid on that borrower. The use-case is not just aimed at going down the credit spectrum either. Many platforms offer loans to a niche market and all platforms have unique underwriting models. For instance, an otherwise perfect borrower applies for a loan for $12,000, but the online lender only loans up to $10,000. If the borrower has opted in, they can receive an offer from another originator. The borrower benefits in two ways. First, they benefit from being funded instead of a simple decline, which offers a much better customer experience. Second, they receive the lowest possible interest rate as multiple platforms can bid on the rate they will receive. [Read more…]