Wilmington, N.C., Jan. 26, 2023 – In response to the rising demand for better credit insights from lenders financing small business loans, data insights and analytics provider Lumos Technologies (Lumos) and Lenders Cooperative, a client-owned LOS platform and commercial lending shared services solution, announced today the release of the Lumos Prime+ Score.
Available exclusively through the Lenders Cooperative platform, the Lumos Prime+ Score leverages three decades of small business performance data with cutting-edge machine learning algorithms to predict expected credit losses over the subsequent 12 months for small business loans and lines of credit under $500,000.
“We are thrilled to be able to offer Lumos Prime+ expected loss model for small dollar small business loans through Lenders Cooperative’s loan origination system,” said Brett Caines, CEO of Lumos Technologies. “There is a tremendous opportunity for lenders to meet the needs of an underserved market with a focus on credit risk and scaling operational costs. The Lumos Prime+ Score allows lenders to approve more loans, manage their risk profile, and get much-needed funding into the hands of small businesses.”
“Many legacy models have been applied with a broad brush for applications beyond the original intention such as consumer credit scores being a primary factor in the determination of the risk of a small business loan,” said Stephen Hayes, CFO of Lumos Technologies. “Our expected loss predictions for small dollar business lending are more accurate and fairer than consumer credit scores and leading business credit scores. We have performed rigorous validation on the Prime+ model to ensure accurate and stable performance.”
The partnership between Lumos and Lenders Cooperative will help ease the challenges for financial institutions providing financing to small businesses for loans under $500,000 through process efficiency and an automated scoring model that utilizes lender-specific credit risk parameters.
“Today’s community financial institutions understand all too well the vital role small businesses play in our communities, but providing the loans they need can be challenging,” said Loughlin Cleary, President and National Sales Director of Lenders Cooperative. “Lenders Cooperative is excited to be able to offer the Lumos Prime+ model through our platform, enabling our customers to look at their small business clients in a completely new light, providing fairer scoring for the credit local businesses need while strengthening those customer relationships.””
To learn more about Lumos and Lenders Cooperative, visit lumosdata.com and lenderscooperative.com.
About Lumos Technologies
Lumos provides analytics-as-a-service that transforms complex data into actionable insights. Backed by expert financial literacy, Lumos provides financial institutions with standardized, automated metrics, powerful decisioning models, and efficient processes with rich, curated data and decades of financial institution literacy at the heart of it all.
About Lenders Cooperative
Lenders Cooperative is a client-owned cooperative representing a community of over 140 and growing forward-thinking banking institutions leveraging best-in-class loan origination software coupled with shared services, including credit underwriting, SBA LSP support, bank operations and white labeled call center support. With solutions built and supported by veteran bankers, the Cooperative also offers customers a deep knowledge base, the ability to exchange best practices and a direct role in guiding the development and implementation of new technologies.
Lenders Cooperative helps community and regional financial institutions think differently on modernizing their lending solutions, improving internal workflow processes, and streamlining back-office operations so they can focus on their real strength – supporting their customers. Visit the Lenders Cooperative community today to join and learn more.