Advisors interested in giving their clients access to “automated” securities-backed loans will be able to utilize new functionality offered by Envestnet and The Bancorp Bank. Envestnet announced on Tuesday that its Credit Exchange portal would include The Bancorp Bank as a lender, the first new lender it has added since its launch. For its part, The Bancorp will be automating loan approvals—in some cases, using its own Talea platform.
The one-two combo is meant to speed loan origination, said executives at the two firms. "The Bancorp's securities-backed lending product provides advisors and their clients with broader options for making financial wellness a reality for more clients,” said John Yackel, head of strategic initiatives at Envestnet, in a statement. In some cases, Envestnet is able to harness data on the financial life of clients serviced through the firm to include prequalified loan opportunities for advisors to present to their clients.
The Bancorp is also relying on technology and data about end-clients to automate loan origination, using its Talea platform. "Talea enables speed and simplicity in loan origination for our Securities-Backed Line of Credit…product, giving advisors and enterprises the confidence to share trusted client relationships with The Bancorp," said John Leto, EVP and head of institutional banking at The Bancorp. "We are glad to work with Envestnet and the Envestnet Credit Exchange to offer the benefits of Talea to more advisors and investors across the country."
Envestnet launched its Credit Exchange late last year. Its lender list consists of TD Bank, LightStream (a division of SunTrust Bank), Nationwide, First Citizens Bank and The Bancorp Bank.