NEW YORK, January 12, 2022 / PRNewswire / – Enigma, a data science company that provides comprehensive information on the financial health and identity of more than 30 million U.S. businesses, announces the spin-off of Prime, a lending platform that will enable for financial institutions to more easily extend loans to small and medium-sized enterprises (SMEs).
Over 50% of small businesses lack access to finance, recent Federal Reserve survey finds, and the pandemic has introduced even more challenges for small business owners. Small business loans are often limited by the inability of financial institutions to assess the risk of extending credit to a particular business.
Community and regional banks have particularly faced challenges in providing finance to small businesses in their communities due to limited resources and a lack of reliable data on the health of businesses. Although these banks have strong relationships in their local economies, the high cost of providing and servicing small business loans has caused them to struggle to compete with large financial institutions.
Prime will expand access to advanced data analytics, risk modeling, and capital markets to smaller financial institutions such as community banks, as well as more established lenders. This will ultimately lower the cost of capital for small businesses, as more banks will be able to effectively create, monitor and securitize small business loans.
Prime’s dashboard will allow banks to download loan books and see leading metrics such as Enigma’s data on revenue and business growth, in order to make risk and lending decisions more efficiently and in complete confidence. With Prime, small banks will be able to better understand their SME credit portfolios and will finally be able to syndicate, exchange and securitize their exposures.
Enigma partners with leaders in the small business finance industry including Capital One, Third Point Ventures, Customers Bank and NEA to launch Prime with a funding commitment of $ 49 million. Prime, which will begin serving the market in the second half of 2022, will provide new lending opportunities for lenders while opening a new funding channel for small businesses.
Prime’s lending solutions will be powered by Enigma’s proprietary data on the identity and financial health of SMBs, spanning more than 30 million U.S. businesses. Enigma’s data provides unique visibility into a small business’s monthly revenue, growth, and detailed firmographic data.
Prime launch partners offer extensive experience in SME lending.
Capital One, a current client and investor of Enigma through Capital One Ventures, has seen firsthand how better small business data leads to growth. Capital One brings unparalleled expertise to the small business ecosystem, gained by listening to and learning from the millions of businesses they serve every day. Capital One is committed to supporting all businesses, from budding entrepreneurs and growing businesses to more established, high-income businesses.
Third Point Ventures, an investor in Enigma and one of the early investors in the revolutionary consumer lending platforms Upstart and SoFi, will bring to Prime its expertise in developing securitization programs. While more than 10% of consumer loans per year are securitized, less than 1% of loans to small businesses are securitized, which limits the liquidity of capital and the availability of finance.
Customers Bank is one of the top 100 digital banks in the country with nearly $ 20 billion in assets that have used the technology to participate in approximately 347,000 Paycheck Protection Program loans with a total value of 10 billion dollars through the COVID-19 pandemic, and recently launched a blockchain-based real-time payment platform for cryptocurrency and digital asset institutions.
NEA is one of the world’s leading venture capital firms and an early investor in Enigma. NEA partnered with the founders on the initial go-to-market strategy for many successful platforms such as Jet.com and Coursera.
“Building on our success in digital consumer lending, bringing digital lending to the SME market is a logical and important strategic priority,” said the president and CEO of Customers Bank. Sam sidhu. “We are thrilled to be the co-creator of Prime using insightful data to design and shape products and services based on the specific needs of each current and potential borrower, depositor and specialty finance client, as we assist them. to face tomorrow. “
CEO of Enigma Hicham Oudghiri will act as Prime’s executive chairman and interim CEO during the transition period. The new leadership team will be in place by the first half of 2022. “We’re excited about what the coming months will look like, knowing that Prime’s mission is to unlock growth and loans for all kinds of communities. “Oudghiri said.
Enigma provides comprehensive information on the identity and financial health of every small and medium-sized business through United States. By designing better data from hundreds of public and third-party sources, we aim to tell the full story of every business, so businesses of all sizes can access the financial services they need to grow and prosper. Financial organizations, from the world’s largest banks to the unicorns of tomorrow, use Enigma’s data to better serve their small and medium-sized business customers. Learn more about https://enigma.com
About Capital One
A capital letter® offers a wide range of financial products and services to consumers, small businesses and commercial customers. Capital One Business offers a diverse line of financial products, tools and services designed specifically for small businesses, including credit cards with unlimited rewards and banking products and services. Capital One Business is committed to fueling the courageous entrepreneurial spirit that is at the heart of America’s small businesses. We focus on listening and learning from the millions of businesses we serve every day to make sure our products, services and experiences work as hard as they do.
About Third Point Ventures
Third Point Ventures is the emerging technology investment arm of Third Point LLC. Founded in 2000, Third Point Ventures seeks multi-stage investment opportunities in private companies that enhance the public market knowledge and domain expertise of the company while balancing risk / reward in the pursuit of superior market-adjusted returns. risk.
About the customer bank
Customers Bank is a full service bank with $ 19.1 billion in assets at September 30, 2021, and a wholly owned subsidiary of Customers Bancorp, Inc. (NYSE: CUBI). A member of the Federal Reserve System with deposits insured by the Federal Deposit Insurance Corporation, Customers Bank is an equal opportunity lender that provides a range of banking and lending services to small and medium businesses, professionals, individuals and families. Services and products are available wherever permitted by law through mobile applications, online portals, and a network of offices and branches. Customers Bank provides blockchain-based digital payments through the Customers Bank Instant Token™ (CBIT) which enables customers to make real-time payments in US dollars, 24 hours a day, 7 days a week, 365 days a year. More than www.customersbank.com.
About the NEA
New Enterprise Associates, Inc. (NEA) is a global venture capital firm focused on helping entrepreneurs build transformational businesses across multiple stages, sectors and geographies. With nearly $ 24 billion In accumulated committed capital since the company was founded in 1977, NEA invests in technology and healthcare companies at all stages of a business’s lifecycle, from start-up to IPO. The company’s long history of successful investments includes more than 230 IPOs of portfolio companies and more than 390 mergers and acquisitions. www.nea.com.
SOURCE Enigma Technologies, Inc.