I’ve just come off a complex bridging case that saw Masthaven deliver an £800,000-plus loan to help a developer complete on a site of four properties they wanted to sell on.
Far from straightforward, the case “ involving a complex security and a complicated repayment strategy – required all our specialist knowledge in order to get it over the line. Internally we celebrated it as a great example of our team coming together to deliver.
But enough of the bigging us up. I mention the case because it was a terrific demonstration of how a short-term specialist lender can approach and resolve the challenges presented to it by a complex case.
The large high street lenders, by sheer virtue of their size alone, find it difficult to take on and process cases in the same way as their smaller, more nimble competitors, such as Masthaven Bank. In the business world, a lot is talked of the 'silo mentality' – an attitude whereby departments within organisations are separated from each other and sometimes wary about sharing information with others.
There can often be physical separation too, with different departments in different buildings or even different cities. Even with modern communication, there is no substitute for people sitting in a room together or gathering around a desk to discuss a case and share ideas, opinions and expertise.
Silo thinking exists in finance and presents additional challenges to larger organisations. We see larger lenders placing loans, products and, more importantly, customers into compartments, holding them against rigid affordability models and traditional box-ticking exercises in the process.
The natural consequence of very large case volumes and the necessary accompanying automation is the viewing of the customer as data to be processed, weighed up and given a yes or no.
Specialist lenders think and act differently. They know the devil is always in the detail, so they start right at the bottom of cases and weave their way up, adding layer upon layer of intelligent analysis as they go. Larger lenders, by necessity, look down from on high, looking to process those cases that tick the boxes to meet their criteria.
Specialist lenders recognise that short-term lending – be it a bridging loan, development finance or other forms – can be complicated. As such, they look at the human, the individual borrower, behind each application, assessing their specific situation and working to deliver based on their needs. Ultimately it boils down to the 'story', including, of course, the essential exit strategy.
The best specialist lenders assign individual underwriters who take on cases and deliver them from inception to completion, taking time to get things right along the way and keeping the introducer informed.
This makes specialist lenders not just the right place for short-term lending, but the natural place.
-
Temenos partners with ClearBank for cloud payments
Banking software company Temenos has formed a strategic relationship with ClearBank to provide banks with a faster route to market for real-time cloud payments...
-
Unity Trust Bank registers 34% rise in profits
Unity Trust Bank increased profits by 34% in 2019...
-
Believe the hype – why explainable AI is a trend that’s here to stay
Technology has become a ubiquitous part of our day-to-day lives...
-
Piloting tech updates: ‘The bigger the bank, the harder it is to get anything done’
In the latest Medianett filmed roundtable session, we discussed how important technology is in the banking space, and what impact the industry expects it to have on its businesses in the future...
-
What banks need to know about cloud security
One of the most common perceived concerns when adopting the cloud is the issue of security...
-
OakNorth sees 95% increase in pre-tax profits
OakNorth Bank has announced a 95% rise in pre-tax profits in 2019 to £65.9m, up from the £33.9m recorded in 2018...
-
Redwood Bank signs up to Women in Finance Charter
Redwood Bank has announced that it has signed up to the Women in Finance (WIF) Charter...
-
Masthaven launches digital Women in Leadership programme
Masthaven Bank has launched a new Women in Leadership digital development programme for female senior leaders...
-
Protecting against supply chain disruption and the domino effect
Disappointingly, many UK SME business owners don’t understand their supply chains...
-
Confused about which Isa to choose? Hopefully this mini-guide will help…
We are now firmly in Isa season, so you’re likely to read multiple articles about the most competitive Isa products in the market and how best to make the most of your Isa allowance before the end of the tax year...
-
Garden shed entrepreneurs contribute £16.6bn to the UK economy
Entrepreneurs who run their businesses from garden sheds contribute £16.6bn annually to the UK economy, according to a recent study...