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Strategic Partnership for Credit Intelligence

In a significant development aimed at improving small business lending, Baker Hill, a leader in financial technology solutions, has announced a strategic partnership with Lumos, a pioneer in predictive credit intelligence. This collaboration marks a new era for banks and credit unions, enabling them to harness the power of predictive analytics to make smarter lending decisions, drive growth, and enhance portfolio performance.

Unlocking Data Value for Financial Institutions

The partnership is designed to help community banks and credit unions unlock greater value from their existing data. By marrying Lumos' predictive credit intelligence with Baker Hill's innovative Data Pond™ strategy, financial institutions can effectively identify and engage more qualified small business borrowers. This allows them to offer additional products and make more informed credit decisions that are crucial for driving portfolio growth and ensuring higher yields.

According to the partners, the integration of Lumos' proprietary Prime+ score into Baker Hill's SMB Digital Experience will enable lenders to gain predictive insights not just at the origination stage but throughout the lifecycle of the loan. Many of Baker Hill's clients have experienced a remarkable reduction in the time it takes to originate small business loans, with some loans being processed in less than a minute. This swift turnaround significantly cuts down on acquisition and origination costs, paving the way for the establishment of profitable lending relationships.

Benefits of Predictive Insights

As part of this strategic collaboration, Baker Hill clients may be eligible for an initial Lumos score backtest during the launch phase. This analysis allows institutions to compare their historical lending decisions against the innovative Lumos Prime+ model. By doing so, they can uncover previously missed growth opportunities, evaluate their portfolio performance, and assess the potential impacts of predictive decision-making on future lending outcomes.

Andy Ivankovich, Baker Hill's chairman and CEO, emphasized the transformative potential of this collaboration. He stated, "We believe the future of small business lending belongs to institutions that can turn data into better decisions. This partnership builds on Baker Hill's Data Pond strategy and supports financial institutions in unifying their lending data and applying predictive insights more effectively."

Enhanced Credit Evaluation and Decision-Making

Lumos' Prime+ score employs thousands of data elements and sources to generate essential predictive insights, empowering lenders to make well-informed small business credit decisions. This score offers a comprehensive, data-driven assessment that not only facilitates loan origination but also aids in ongoing portfolio monitoring. As a result, lenders can identify emerging risks and growth opportunities across their lending portfolios, all while retaining full control over their credit policies and lending decisions.

Brett Caines, CEO of Lumos, noted that their goal was to empower lenders by unlocking the full potential of predictive analytics in the small business lending space. He remarked, "Combined with Baker Hill's digital lending capabilities, institutions can accelerate originations without compromising credit quality and can confidently grow their portfolios."

A Unified Approach to Lending

Through this partnership, Baker Hill strengthens its commitment to modernizing small business lending experiences. Together, they provide a cohesive approach to application intake, credit evaluation, decision-making, and portfolio oversight. This methodology enables financial institutions to lend faster, smarter, and more effectively within their communities.

In conclusion, this strategic partnership between Baker Hill and Lumos aims at elevating the lending landscape for small businesses. By leveraging predictive insights and innovative technology, financial institutions will be better equipped to meet the evolving needs of their communities while driving substantial growth in their lending portfolios. As Ivankovich succinctly put it, "We believe better data leads to better outcomes for lenders and borrowers alike."

About Baker Hill

Baker Hill stands as the leading provider of commercial lending technology for banks and credit unions across the United States. Each month, its platform processes over $7 billion in lending origins, helping strengthen local communities through enhanced lending solutions. Established and backed by Flexpoint Ford, a noted private equity firm, Baker Hill remains dedicated to delivering innovative and secure solutions that cater to modern banking needs. For more, visit Baker Hill's website.

About Lumos

Lumos is at the forefront of providing predictive credit intelligence and portfolio monitoring solutions specifically for small business lending. Armed with its proprietary Prime+ score and data analytics platform, Lumos supports financial institutions in making more informed lending decisions, enhancing portfolio performance, and broadening access to capital for small businesses. Their mission emphasizes the importance of data-driven solutions that streamline the lending process for both lenders and borrowers.