The BHG Financial Advantage: Why banks should partner with a FinQuant, not FinTech BHG Bank Network

THE BHG FINANCIAL ADVANTAGE:

Why Banks Should Partner with a FinQuant, not FinTech

Low lending margins, paired with a surplus of cash, have driven many banks to seek new income opportunities or diversify their portfolios to increase their bottom lines. One effective way to overcome these obstacles and achieve your revenue goals for the year is to form a strategic relationship with a proven industry partner.

One well-established alternative lender, BHG Financial, has set itself apart from FinTechs by carving its niche in the industry as a financial quantitative service company or FinQuant. The company has been originating and selling loans to community banks for over two decades, strategically targeting high-earning professionals throughout the United States.

BHG has built proprietary quantitative analysis models that leverage 20 years’ worth of its historical borrower data to uncover variables that dictate the risk associated with each borrower. Utilizing some of the brightest minds in analytics, as well as 50 data vendors, BHG has gained unmatched insight into its borrower characteristics and performance.

Not only does this data help inform future decision-making regarding who BHG lends to, it is also leveraged by BHG’s full-service, in-house marketing division to execute highly targeted campaigns to millions of professionals every day. BHG’s origination strategy is extremely selective: the company targets the top 16% of the strongest credit-quality borrowers in the market. This attention to detail ensures that BHG only lends to the highest-performing borrowers, resulting in a huge industry advantage for the company and over $11 billion in loans funded to date.

FINQUANT-DRIVEN RESULTS

Today, BHG works with more than 48,000 of these highly coveted borrowers each month, with millions of dollars in high-quality loan volume sold daily through the BHG Loan Hub, the company’s state-of-the-art loan delivery platform for community banks.

This secure online system allows for the daily sale and delivery of time-tested and proven loans, helping BHG meet the growing loan demand from community banks. The platform includes various methods for purchasing a single loan or portfolio of loans. It has been a highly effective distribution channel where a bank can approve the loan program and purchase loans according to their underwriting standards the next day. New loans are posted daily, and—as with all BHG loans—a consistent, complete credit file is available for review prior to purchase.

Across the country, a network of more than 1,400 community banks has access to this program, earning a solid 3.5% – 6.25% return. Over the course of 20 years, no bank has ever taken a loss on the BHG Core Loan portfolio.

If your bank is looking for new ways to diversify its commercial loan portfolio, partnering with an established lender like BHG may be a great opportunity.

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