Glossary of Terms

Borrower Insights

Definition

Borrower Insights refer to data-driven intelligence that helps lenders understand applicant behavior, financial health, and lending potential. These insights go beyond traditional credit scores, incorporating real-time cash flow, business performance, and digital engagement patterns to assess borrower readiness and risk.

By leveraging AI and machine learning, Borrower Insights provide a 360-degree view of applicants, helping lenders make informed decisions, nurture future borrowers, and reduce risk.

Why is it important to SBA Lending

SBA loans require a comprehensive understanding of a business’s financial standing to determine eligibility. Traditional underwriting often fails to capture the full picture, leading to missed opportunities and underserved borrowers.

Borrower Insights solve these challenges by:
-Improving loan approval rates: Helps lenders identify creditworthy borrowers who might not qualify under rigid scoring models.
-Enhancing risk management: Provides predictive insights on a borrower’s ability to repay, reducing default risks.
-Boosting borrower engagement: Identifies areas where applicants struggle and offers guidance to improve loan readiness.
-Enabling cross-selling opportunities: Uncovers additional financial products suited to each borrower’s needs.

What role does Parlay Play

Parlay enhances Borrower Insights through its AI-powered platform, offering:

-AI-Driven eligibility assessments: Analyzes multiple data points to determine SBA loan readiness.
-Behavioral analytics: Identifies common drop-off points and engagement trends.
-Dynamic borrower education: Provides personalized financial guidance to increase loan eligibility.
-Continuous monitoring: Tracks borrower financial health post-loan to enable proactive risk management.

Borrower Insights revolutionize SBA lending by offering lenders deeper, AI-driven intelligence on applicants. Parlay’s Loan Intelligence System empowers banks and credit unions to approve more loans, reduce risk, and enhance borrower relationships, creating long-term lending success.