OnDeck Capital Tapped by JPMorgan Chase to Help with SMB Lending
- Shares of OnDeck are trading higher after revelations that it secured a partnership with JPMorgan Chase for use of its technology.
Earlier this year, it was revealed that Goldman Sachs had intentions to enter the marketplace lending market. Now, another large global US bank is headed in that direction as JPMorgan Chase has entered into strategic partnership with OnDeck Capital. Through the partnership, JPMorgan will use OnDeck’s lending platform and OnDeck Score, its proprietary risk profiling for small and medium sized businesses (SMB), to serve its own SMB customers.
The partnership marks the latest case where a major bank has tapped an online lender to assist in servicing its customers. Other examples include RBS with Funding Circle and Citi working with Lending Club. In addition, when raising its latest Funding Round Funding Round Startups look to raise capital can participate in a funding round. These refers to the various rounds of funding that occur upon proof of concept, customer base growth, and the probability of success. While they are various types of funding rounds, the most commonly seen in startups include the following funding rounds: Seed, Series A Fundraising, Series B Fundraising, and Series C Fundraising. In order for a funding round to take place, a valuation must be performed by analysts for the business Startups look to raise capital can participate in a funding round. These refers to the various rounds of funding that occur upon proof of concept, customer base growth, and the probability of success. While they are various types of funding rounds, the most commonly seen in startups include the following funding rounds: Seed, Series A Fundraising, Series B Fundraising, and Series C Fundraising. In order for a funding round to take place, a valuation must be performed by analysts for the business Read this Term, Kabbage included ING and Santander as strategic investors. According to OnDeck Capital, it expects this deal to commence operations in 2016.
For OnDeck, the deal was a boon for its fledgling stock price which has been trending lower since the firm went public at the end of 2014. After closing at $9 on Tuesday, shares of OnDeck Capital (ONDK) opened trade over 40% higher at one point yesterday to $12.85, before settling lower as more details on the partnership with JPMorgan emerged.
For JPMorgan, the deal provides it an online platform to help process loans more efficiently for SMBs, a lending area where banks have been scaling down their operations. Following the 2008/09 global financial crisis, originations of SMB loans had been in decline for several years, but have since rebounded. Partially responsible for the uptick in lending are advancements in Big Data Big Data Big data refers to the collection of data that is too complex and too large for processing by standard database tools. There is no specific quantity of data, which is set as a minimum level to be considered Big data. Image the data collected on global credit card transactions. Many governments used Big data analysis to study the recent pandemic spread. The term Big data was first introduced in 1980 by Charles Tilly.The term Big data was primarily used in computer science, statistics, and econome Big data refers to the collection of data that is too complex and too large for processing by standard database tools. There is no specific quantity of data, which is set as a minimum level to be considered Big data. Image the data collected on global credit card transactions. Many governments used Big data analysis to study the recent pandemic spread. The term Big data was first introduced in 1980 by Charles Tilly.The term Big data was primarily used in computer science, statistics, and econome Read this Term to analyze credit risk of businesses.
Earlier this year, it was revealed that Goldman Sachs had intentions to enter the marketplace lending market. Now, another large global US bank is headed in that direction as JPMorgan Chase has entered into strategic partnership with OnDeck Capital. Through the partnership, JPMorgan will use OnDeck’s lending platform and OnDeck Score, its proprietary risk profiling for small and medium sized businesses (SMB), to serve its own SMB customers.
The partnership marks the latest case where a major bank has tapped an online lender to assist in servicing its customers. Other examples include RBS with Funding Circle and Citi working with Lending Club. In addition, when raising its latest Funding Round Funding Round Startups look to raise capital can participate in a funding round. These refers to the various rounds of funding that occur upon proof of concept, customer base growth, and the probability of success. While they are various types of funding rounds, the most commonly seen in startups include the following funding rounds: Seed, Series A Fundraising, Series B Fundraising, and Series C Fundraising. In order for a funding round to take place, a valuation must be performed by analysts for the business Startups look to raise capital can participate in a funding round. These refers to the various rounds of funding that occur upon proof of concept, customer base growth, and the probability of success. While they are various types of funding rounds, the most commonly seen in startups include the following funding rounds: Seed, Series A Fundraising, Series B Fundraising, and Series C Fundraising. In order for a funding round to take place, a valuation must be performed by analysts for the business Read this Term, Kabbage included ING and Santander as strategic investors. According to OnDeck Capital, it expects this deal to commence operations in 2016.
For OnDeck, the deal was a boon for its fledgling stock price which has been trending lower since the firm went public at the end of 2014. After closing at $9 on Tuesday, shares of OnDeck Capital (ONDK) opened trade over 40% higher at one point yesterday to $12.85, before settling lower as more details on the partnership with JPMorgan emerged.
For JPMorgan, the deal provides it an online platform to help process loans more efficiently for SMBs, a lending area where banks have been scaling down their operations. Following the 2008/09 global financial crisis, originations of SMB loans had been in decline for several years, but have since rebounded. Partially responsible for the uptick in lending are advancements in Big Data Big Data Big data refers to the collection of data that is too complex and too large for processing by standard database tools. There is no specific quantity of data, which is set as a minimum level to be considered Big data. Image the data collected on global credit card transactions. Many governments used Big data analysis to study the recent pandemic spread. The term Big data was first introduced in 1980 by Charles Tilly.The term Big data was primarily used in computer science, statistics, and econome Big data refers to the collection of data that is too complex and too large for processing by standard database tools. There is no specific quantity of data, which is set as a minimum level to be considered Big data. Image the data collected on global credit card transactions. Many governments used Big data analysis to study the recent pandemic spread. The term Big data was first introduced in 1980 by Charles Tilly.The term Big data was primarily used in computer science, statistics, and econome Read this Term to analyze credit risk of businesses.