Latest post
Moody’s Corporation (NYSE: MCO) announced the acquisition of Numerated Growth Technologies, the cutting-edge loan origination platform designed for financial institutions. This strategic move enhances Moody’s existing Lending Suite by incorporating Numerated’s innovative technology into its comprehensive suite of solutions. The acquisition marks a significant step forward in expanding Moody’s offerings, enabling financial institutions to better manage the entire loan lifecycle—from origination to monitoring—through a seamless, data-driven platform.
The acquisition follows a partnership in January 2024 in which Numerated’s technologies, focused on front-office decisioning, loan operations, and customer-facing tools, were wed with Moody’s deep expertise in credit assessment, underwriting, and risk monitoring. Moody’s is now able to offer a fully baked end-to-end loan origination and management solution that is certain to benefit banks and other financial institutions looking to streamline their lending processes.
Enhancement of the Digital Lending Ecosystem
In the deal, Numerated’s technology is going to be integrated into Moody’s Lending Suite, a robust set of tools that already offers credit analysis, risk management, and financial data services. With the incorporation of the capabilities offered by Numerated, Moody’s is positioning itself as one of the leading providers of comprehensive, data-driven solutions aimed at enhancing the efforts in the digital transformation of the financial institutions.
This acquisition is just very important to our clients,” Rob Fauber, Moody’s President and CEO said. “As our banking customers implement digital transformation programs to improve user experience, automate processes, and provide their front office functions with more data, they are looking for a credible end-to-end lending solution,” Fauber explained. “Bringing Numerated in-house allows us to accelerate the growth of our Lending Suite, giving our customers more powerful data and analytical tools across the entire lending lifecycle.”
This acquisition strengthens Moody’s digital lending capabilities while reinforcing its commitment to equipping financial institutions with the tools needed to compete in a rapidly evolving financial services landscape.
Enhance Loan Origination using AI and Data Integrity
Numerated, the company known for making it easier to stream line and modernize loan origination, utilizes AI and data analytics tools. By improving data integrity and automating key parts of the loan application, decision-making, and closing processes, Numerated has helped financial institutions reduce manual labor and increase efficiency in their lending operations.
Since its founding, Numerated has originated over $65 billion in loans, with the platform used by more than 500,000 businesses and 30,000 financial institution employees. The firm’s technology serves institutions managing a combined $3 trillion in assets, proving its significant footprint in the financial industry.
Numerated will integrate into the Moody’s family of products, providing customers with end-to-end solutions in lending, from loan origination and decisioning at the front end to credit assessment, underwriting, and monitoring at the back end. The entire process is expected to give financial institutions increased control over lending processes, assure more and improved efficiency, better decisions, and protect the integrity and security of data.
A Strategic Acquisition for Moody’s
The financial terms of the transaction are unknown, but in Moody’s view, the acquisition should not have a material impact on the company’s financial results for the 2024 fiscal year. However, integration of the Numerated platform would likely give Moody’s an edge in the digital lending space, an area that has been growing rapidly as financial institutions embrace new technologies to enhance customer service and smooth their operations.
For Numerated, this alliance with Moody’s means an opportunity to amplify its platform even more through Moody’s strong global network and its industry leadership in data and analytics. Bringing together the innovative loan origination tools from Numerated and Moody’s advanced credit risk management, the two companies will deliver a stronger offering to financial institutions worldwide.
Increasing Demand for Digital Lending Solutions
The demand for digital lending solutions is on the rise as financial institutions increasingly look to digitize their operations. Digital transformation in banking is becoming a priority as institutions seek to enhance their customer experience, reduce costs, and speed up the decision-making process. With more consumers and businesses relying on digital services, financial institutions need to adopt advanced technology to stay competitive in an increasingly crowded market.
With Numerated, Moody’s addresses the need for a comprehensive end-to-end lending solution which modernizes the operation of banks and other lenders. Going forward, solutions will be critical to market leaders as they try to accelerate growth in the lending space, faster and more efficient loan processing, and stronger risk management capabilities.
Looking Ahead: Accelerating Growth in the Lending Space
This acquisition comes at a critical time for Moody’s as it looks to strengthen its foothold in the financial services sector. With digital transformation and automation at the forefront of the banking industry’s evolution, this expanded Lending Suite is set to offer financial institutions a powerful set of tools to meet the needs of an increasingly tech-savvy customer base.
In the coming months, Moody’s would likely continue to integrate Numerated’s platform into its existing infrastructure and work towards offering financial institutions a more cohesive and robust lending solution. The strategically savvy move places Moody’s in a prime position to continue its leadership in digital lending as the financial services sector increases reliance on technology.
source: ffnews
