BankTech Ventures Invests in Wholesale Financing Platform Vero Technologies

BankTech Ventures is proud to announce our investment of $2.5 million in Vero Technologies!

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After speaking with many of our limited partners and recognizing the need for diversified lending opportunities and unique solutions to increase deposits via customer stickiness, we sourced Vero to be part of our ever-growing ecosystem of top tier bank-ready solutions.

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Vero offers a robust, end-to-end wholesale financing platform enabling banks to establish floor plan financing programs for dealers of manufactured goods or for banks already operating programs in this space, to streamline their existing processes by leveraging Vero’s technology. Their platform can be used by banks to manage their existing portfolio or through utilizing their outsourced Lending-as-a-Service offering. Check out our FinTech Speed dating episode featuring John Mizzi, CEO & Co-Founder of Vero, or read more about them below.

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Value Proposition

Vero Technologies provides the following options:

Lending-as-a-Service

• Allows banks to offer a new commercial lending product (wholesale or floor plan financing) without an up-front investment in new systems or headcount, limiting execution risk and credit exposure, while being able to expand the breadth of relationships with their existing dealer customers across auto, marine, RV, powersports, agricultural equipment and other verticals.
• Combines underwriting, loan management, risk monitoring, and loan servicing into one system.
• Designed for easy implementation so banks can use the technology to streamline their current programs while having the option to leverage Vero’s underwriting and loan servicing teams to launch and manage the new credit product.
• Leverage their in-house loan servicing experts for: credit evaluations, funding operations, account management, title management, collections/loss mitigation, audits and remarketing, plus more.

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Wholesale Financing Platform

• End-to-end loan management functionality including servicing, collections, title transfers, in person and virtual auditing and customizable reporting.
• Onboard clients, review/manage/decision documents, request and submit funding requests, manage LOCs, service loans, and review your portfolio’s performance through dealer health in real-time.
• Customizable digital application to collect borrower data, documentation, verify user credentials and digital signatures.
• Underwriting module for in-depth borrower analysis and communications.
• Open banking integration to analyze business health and monitor borrower banking activity in real-time throughout the life of the credit facility.
• Portfolio and risk management tools providing real time data on portfolio health and borrower activity.  

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Who Should Engage

If you’re a bank who:

1. has an indirect consumer or equipment financing program with dealers across auto, marine, RV, powersports, agricultural equipment and other verticals or existing banking relationships with these dealers. You may want the business accounts of those SMBs but don’t offer the floorplan financing solution the business owners have requested.
2. is doing floor plan and inventory financing and are looking for a more comprehensive technology solution to grow this portfolio.
3. has no inventory financing operation but has a desire to expand into the space. You may be a bank that sees inventory financing as a means to grow your portfolio.

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Implementation Process

• Lending-as-a-Service

• 16-week process (program design, implementation and testing, marketing & sales, dealer underwriting and on-boarding)
• Acquisition: Vero’s team builds a pipeline of qualified deals across your target markets, acting as the product specialist for your bank.
• Underwriting: Leverage the credit expertise of Vero’s credit team to pre-qualify applications and prepare credit memos for consideration by your credit team.
• Funding: Earn a premium relative to your traditional C&I programs - either fund the program directly or participate in Vero’s syndicate to fund the program.
• Loan Servicing: Vero can either handle the entire process - or you can choose services (title management, audits, etc.) based on your individual bank's needs.

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• Platform

• A customer questionnaire is provided to the bank to complete in order learn current process, application details, loan structures, servicing needs, funding process and reporting requirements
• Recurring weekly calls are scheduled for the implementation period to provide in depth training. All training material is provided to the bank.
• A branded digital application is created based on the required fields provided by the bank
• Development environment of the bank platform instance is stood up and user access is granted to the bank and Vero users for testing.
• ACH and GL files are created based on bank account numbers and transaction codes provided. Test files are processed through the bank core to verify proper formatting.

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Benefits for Banks

Vero Technologies enables banks to:

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• expand coverage of their local business relationships,
• acquire new business banking relationships among dealers,
• offload their inventory financing operation, and/or
• deploy capital to new high yield fully-secured credit products.

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Connect with Pam (pam@banktechventures) or John Mizzi (john@vero-technologies.com) to learn more.

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