Dec. 21, 2018 | FenderBender.com
The media outlet OnDeck recently announced Kingston Collision as its Small Business of the Month for December 2018.
Kingston Collision serves residents of Kingston, N.Y. and the Hudson Valley. The owner, David Rowe, opened the business after serving as a physical damage adjuster for 20 years.
Rowe used OnDeck as a lender to help him meet the shortfall until insurance companies released the funds on dozens of outstanding claims. He used the financing to purchase parts and inventory for customer repairs.
(Reuters) – OnDeck Capital Inc (ONDK.N), which lends to small businesses online, reported a third-quarter profit that beat estimates and raised its full-year outlook, sending its shares surging nearly 26 percent.
The company expects a full-year 2018 profit of $20 million to $24 million, up from its previous outlook of $10 million to $16 million.
Loan originations jumped 22 percent to an all-time high of $647.8 million from $530.9 million, the New York-based lender said.
American Banker Online
By Kevin Wack
16 October 2018
OnDeck Capital, an online lender that also provides the technology to JPMorgan Chase’s digital small-business lending platform, is creating a new subsidiary to pursue partnerships with other banks.
The wholly owned subsidiary will be called ODX, according to New York-based OnDeck.
OnDeck, which specializes in online small-business loans, has been working to build its bank partnership business since announcing its deal with JPMorgan Chase in 2015. The nation’s largest bank launched its QuickCapital platform in 2016.
In recent months, OnDeck has been signaling that it expects to unveil a second bank partnership soon. That deal’s announcement is imminent, a company spokesman said Monday.
OnDeck CEO Noah Breslow said that dozens of the firm’s employees have moved to ODX, which is also recruiting outside talent.
“This is about signaling our commitment to the market, and really scaling up,” he said.
Brian Geary, who previously served as vice president of OnDeck’s partnership unit, has been named president of ODX. Geary said that ODX is focusing on banks that want to offer digital small-business loans, but could expand into other asset classes over time.
The company also announced the hiring of Raj Kolluri, who formerly worked at the financial technology firm SS&C Primatics, to serve as head of product and technology at ODX.
OnDeck, founded in 2006, has made more than $12 billion in small business in the U.S., Canada and Australia. The publicly traded firm, which touts its rapid loan decisions, often lends at relatively high interest rates to companies that do not qualify for credit from banks.
Partnerships with banks could enable OnDeck, which funds its own lending business in the capital markets, to become less vulnerable to a turn in the credit cycle. Under the JPMorgan Chase deal, the $2.6 trillion-asset bank sets the underwriting criteria and holds the Chase-branded loans on its own balance sheet, while OnDeck operates behind the scenes.
Fintech companies that want to license their digital lending technology to banks often lament the slow pace of decision-making inside depositories. Geary acknowledged that banks took a wait-and-see approach in the past, but he indicated that the climate has improved.
“We’re definitely seeing a very strong demand in the market today,” he said.
OnDeck reported net income totaling around $11 million in the first half of 2018 after recording $94.5 million in losses over the previous two years.
Oct. 16, 2018 | Reuters
NEW YORK (Reuters) – OnDeck Capital Inc has set up a subsidiary that will provide technology and other services to banks looking to lend to small businesses online, it said on Tuesday.
Called ODX, the new company will expand OnDeck’s existing business of providing online lending software to banks, such as JPMorgan Chase & Co, the company said.
ODX plans to announce a new bank partnership imminently and has a pipeline of other potential bank partners across the world, the company said.
It believes ODX will make it faster and easier for banks to digitize their lending to small businesses.
“We felt that given the robust demand we are seeing by the largest banks, it is not a question of if they are moving into online lending, but of when,” Noah Breslow, chief executive of OnDeck, said in an interview. “We thought that by creating ODX, we would set ourselves to take advantage of that opportunity.”
September 12, 2018 | Lend Academy
Back in 2007, OnDeck started making loans to US small businesses. Since then, the company weathered the financial crisis, lending to small businesses at a time when few were. In 2010, they surpassed the $100 million mark. Fast forward to today and the company officially crossed $12 billion in originations. This makes OnDeck the world’s largest non-bank online lender to small businesses by total volume.
It’s interesting to look back at OnDeck’s history and see how far they have come. The marketplace in 2007 was vastly different than it is today and they still managed to lend $100 million in the first three years. Consumer lending companies Lending Club and Prosper were just getting started so lending online to a small business was a novel idea. Small businesses have embraced online loans over the years as evidenced by OnDeck originating $2.1 billion in 2017 alone but there is still room for growth. In 2017, 24% of small businesses who were seeking credit applied online compared to 21% in 2016. CEO Noah Breslow provided the below comment as part of the press release:
Watch this video of OnDeck’s CEO, Noah Breslow, discussing online lending as the future for small businesses and strong earnings.
The company reported that it earned adjusted net income of $10 million, or $0.13 per diluted share, in the second quarter, far better than the $0.05 analysts were expecting on the same basis.
The big news from On Deck Capital’s second quarter was the change in its full-year guidance for 2018. These changes are detailed in the table below.
The company’s outlook calls for loan balances to grow by 10% to 15% for the full year 2018, and for the provision rate to be on the low end of its 2018 guidance of 6% to 7% of loan balances.
Reuters | August 7, 2018
Shares of OnDeck Capital Inc (ONDK.N) soared on Tuesday after the online lender reported second-quarter profit that topped estimates and it raised its full-year guidance.
OnDeck shares were up 20 percent at $8.16 in early morning trading on the New York Stock Exchange.
The company said it expects a full-year 2018 profit of between $10 million and $16 million, from its previous forecast of up to $10 million.
OnDeck said its higher profit came from a greater number of loans and higher interest rates.
The federal government began clearing a path on Tuesday for online lenders and payment companies to more easily and directly compete with traditional banks, a change that one regulator said would allow innovative businesses to expand nationwide.
Online lenders and other so-called fintech firms — including the payment processor Square, the online lender Lending Club and the cryptocurrency exchange Coinbase — have pressed for regulatory routes that would let them cut through the thicket of state and federal laws that govern financial businesses.
Heeding those requests, the Treasury Department released a 222-page report laying out the Trump administration’s view on how nonbank financial companies should be regulated. Hours later, the Office of the Comptroller of the Currency, a national bank regulator, announced a new kind of charter that would potentially free such companies from the state-by-state approvals they currently need to offer loans and other financial products.
It may not be a first for the domestic fintech industry, but it is a first for a U.S. fintech company that’s been operating in Canada for the past four years.
OnDeck Canada, the local online arm of the U.S. headquartered OnDeck now has a $50-million asset-backed credit facility, provided by Crédit Agricole, to fund its loans. According to a recent ranking of assets, the French bank is the world’s ninth largest. Its Montreal office offers commercial and investment banking services.
This is the first time that OnDeck Canada — which has originated $180 million in small business loans since 2014, all made using a “wide spectrum of data, technology and analytics” — has arranged funding from a source other than its parent.
“We are very excited that Crédit Agricole sees a lot of value in the Canadian economy, in Canadian small business and finds our mission attractive enough for them to participate in,” said Amar Ahluwalia, OnDeck’s vice-president of Partnerships & Capital Markets. We were unable to reach Crédit Agricole for comment.