Magazine article American Banker

A Second Pioneer to Provide Self-Service Loan Terminals

Magazine article American Banker

A Second Pioneer to Provide Self-Service Loan Terminals

Article excerpt

A second company has entered the fledgling business of making ATM-like terminals dedicated to loan sales.

Dyad Corp., a start-up operation based in Norcross, Ga., joins Affinity Technology Group of Columbia, S.C., in providing self-service machines that let banks land new credit business at a relatively low cost.

Though several influential banks are lending through automated loan machines, most are using them to gauge consumer reaction.

Widespread acceptance of the terminals depends on "whether this approach to lending is going to hit a particular consumer need," said Ira Morrow, research director of financial services industry at the Gartner Group.

For banks, the primary attraction of the terminals is that they can reduce loan processing costs. According to Andersen Consulting, a loan originated at a branch costs between $1,800 and $3,800 to process. Processing through an automated loan terminal lowers costs to the $300-to $700 range.

The cost savings come from eliminating human involvement in individual loan decisions. Loan applicants input data at the terminals, and the system runs the data through an automated decisioning system. Both Dyad and Affinity terminals can deliver decisions and loan proceeds in a matter of minutes.

But the two company's machines do have their differences.

Affinity terminals route application information to a decision support system it developed. The system, which pulls credit reports from third party providers, delivers decisions based on criteria preset by the bank operating the terminal. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed


An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.