Opus Bank in Irvine, Calif., is the latest bank to partner with an online lender, announcing an agreement Thursday to refer certain small-business customers to OnDeck Capital.
Under the deal, the $6.2 billion-asset bank will refer small businesses that are looking for financing of up to $500,000 to New York-based OnDeck, according to a press release from Opus. Financial terms were not disclosed.
Opus Chief Executive Officer Stephen Gordon said in the press release that the referral agreement will generate additional revenue without using the bank's balance sheet or capital. Opus operates 58 retail banking offices in California, Arizona, Washington and Oregon.
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At the start of 2015, there was a sense that Silicon Valley would soon rule the world of finance and that banks risked irrelevance. A year later, a more balanced picture has emerged.
January 5 -
Relations between banks and fintech companies are starting to thaw as the two sides begin to acknowledge the advantages of scale that exist when they join forces.
December 14 -
OnDeck Capital, Lending Club, Funding Circle and Kabbage in the last week have all announced moves designed to boost their loan volumes.
October 21
While Opus receives a "significant amount of inquiry for small business loans" through its retail bank, Gordon said, "OnDeck has proven to be much more proficient in underwriting and funding these smaller loans."
OnDeck, which specializes in online small-business lending, originated $483 million in loans during the third quarter of 2015.
