JPMorgan Chase & Co. and OnDeck Capital Inc. announced a partnership to speed up the process of providing loans to some of JPMorgan’s 4 million small-business customers. The partnership joins JP Morgan’s client base and OnDeck’s technology to provide a better product to more people, according to a quote in BloombergBusiness from Jennifer Piepszak, JP Morgan’s head of business banking:
We’re working with OnDeck to build a new Chase lending product that will be launching in 2016 for small-dollar loans to our small-business clients. By combining Chase’s relationships and lending experience with OnDeck’s technology platform, we’ll be able to offer almost real-time approvals and same- or next-day funding.
According to the Wall Street Journal, OnDeck won’t put up any capital. Instead, it will get fees to originate and service loans for J.P. Morgan, many with a value up to $250,000, previously considered too small to move the needle at the big bank. OnDeck will be invisible to the customer, however, it can use data it gleans from the partnership to improve its lending models.
We think it’s a watershed partnership, said OnDeck CEO Noah Breslow.