Community Banks Competing on Convenience
How Mirador is helping Umpqua compete with fintech newcomers and big banks
Umpqua Bank, an Oregon based community bank, wanted to modernize their small business loan application process to create a better customer experience and compete with the growing number of online lenders. Mirador helped Umpqua achieve this with their completely digital, white label, small business loan platform. In less than a year Mirador processed over $11 million in small business loans for Umpqua and helped to change their image from outdated to cutting edge.
Umpqua was confronted with a challenge many community
banks are facing today, an inefficient small business loan
application process and increasing competition from online
lenders. Umpqua utilized a paper small business loan application
and it was a time consuming and slow process for all parties involved.
Additionally, they were seeing a growing number of borrowers migrate
to online lenders. Even though these alternative lenders had confusing
terms and egregious interest rates, they were simple and fast.
In order to stay relevant and compete Umpqua sought a Fintech
partner to help them create an entirely new and modern small business application process.
How Mirador Helped:
Mirador worked with Umpqua to implement a next-generation digital-lending experience with all the features and conveniences needed to compete with other banks and Fintech newcomers:
• Completely digital loan application
• Document and data digitization
• Dynamic loan product routing
• Seamless decline experience
• Communication channel within the application
• Intelligent Product Routing
• Automatic outbound borrower support communication
“I would give the experience working with Umpqua and Mirador’s digital small business loan application a 10 out of 10 and plan to work exclusively with both in the future whenever I need a loan.”
David, Umpqua Bank Borrower in Seattle
loan approved November 2017
In June 2017, Umpqua went live with their new, completely digital “Small Business Administration Loan Portal,” powered by Mirador. The look, speed and simplicity of the platform could rival just about any online shopping experience and was not something you would expect from a community bank. The new small business portal hasn’t even been live for a year yet, but already Umpqua is feeling the impact:
• Customers are happy with the simple and fast application process
• Loan officers are spending less time on declined applications because of the automated decline feature
• The time it takes to complete an application has been significantly reduced from hours to minutes
• The application process is more inclusive since it can be completed anytime, anywhere
Yong Hwan Seo “David” owns a printing business in Seattle, Washington and applied for a small business loan at Umpqua Bank. He said it took him less than 30 min. to fill out the application, he heard back from Umpqua immediately and within weeks he had a $450,000 loan.
David has applied for small business loans through other banks in the past for different businesses. David described the experience as “absolutely terrible.” He said it took him hours and hours to complete the application process, the communication was terrible (some never even followed up with him) and he couldn’t get the money he needed for his business. He described the application process with Umpqua as “very simple and easy.”
When asked to rate his experience working with Umpqua and Mirador’s platform, David said: