LendAPI and PortX Team to Streamline Digital Lending

Digital lending company LendAPI has teamed with Integration-Platform-as-a-Service (IPaaS) provider PortX.

“Our advanced platform, when combined with PortX’s integration prowess, will enable financial institutions to not only simplify their lending and account opening processes but also to adopt more sophisticated, data-driven decision-making strategies,” Timothy Li, CEO of LendAPI, said in a news release Thursday (Feb. 29).

“This partnership is about setting new standards in the industry and delivering unparalleled value to our clients,” Li added.

According to the release, the LendAPI platform offers real-time custom credit scoring and variable setting capabilities for tenants, which lets financial institutions (FIs) tailor their lending criteria more precisely to their risk appetite and market needs.

The companies said their integration is designed to be seamless, with LendAPI’s “comprehensive API endpoints” ensuring smooth integration with lenders’ infrastructures.

“This collaboration ensures that FIs can effortlessly adopt and implement LendAPI’s advanced features, such as rule setting and shadow scoring, providing them with complete control over their decision-making processes,” the release said.

Earlier this month, PortX launched a partnership with compliance platform Hummingbird, to make it easier for FIs to use Hummingbird’s services to investigate money laundering and other financial crimes.

“With this partnership, any flags in the system for suspicious activities can be automatically pushed to Hummingbird,” said David Wexler, CEO of PortX.

“This not only streamlines the process but also drastically reduces response times. It enhances the ability of FIs to promptly address and get ahead of potential issues, improving their overall risk management and compliance posture significantly,” Wexler said.

Meanwhile, PYMNTS has recently been examining the use of artificial intelligence (AI) in helping FIs make lending decisions, even though some consumers feel uneasy about the technology’s place in the financial services world.

PYMNTS Intelligence research has found that bank and FI customers “are apprehensive of GenAI in financial services, with over 70% expressing nervousness about its use in the banking sector, PYMNTS wrote earlier this month. “Only 58% stated they would be comfortable with their banks using this technology.”

To address these concerns, most customers said that factors such as data transparency, human oversight and government regulation would make them more comfortable with the use of AI in financial services.