[Gini Co]

What percent of the industry still submits/processes hand-written applications (bank/processing) by email PDF or FAX?

Why have we not fully embraced the digital age? This industry has supposedly found ways to leverage technology to make it economically feasible to market to, underwrite, and finance small dollar deals ($10K-$150K). Seems like as a whole there is still much work to be done on the technology side.

Where's the disconnect? [Merchant - Agent], [Agent - Funder]?

Are merchants not savvy (or trustful) enough fill out a complete digital or online application and sign electronically?

Do those funders who have all the technology on their end find agents and merchants who are willing to do the data entry in order to get a fast response?

[CO1]

Well In My company we do it old fashion to give them a personal touch and people still like that and than when we have to out source a deal i have my assitant enter it into the portal of the company that me and my under writer decide on.

[MCNetwork]

At least 50% of the merchants I deal with are not technically savvy. The disconnect primarily lies with the merchants.

[Finance1]

Our credit vendor requires us to have hand signed applications for pulling personal credit. It's not like they check up on us or anything but personal credit pulls are regulated. Better to be safe than sorry. As far as contracts go, our legal guy would never advise us to start accepting electronic sigs on purchase agreements.

And I agree with MCN. Many merchants haven't embraced online statements and emailing docs. Seems like more and more are proficient but the over 50 crowd still likes to use fax machines more often than not.

[jbrown]

As a funder, I find this thread interesting. If e-sign documents were an option, say for the app and the contract, would that be a positive for the ISO/agent community? I agree that there are a lot of merchants that would not or could not take advantage of e-sign. On the other hand I'm not sure how many merchants actually read the contract anyway.

[Capital Stack]

As a funder, I find this thread interesting. If e-sign documents were an option, say for the app and the contract, would that be a positive for the ISO/agent community? I agree that there are a lot of merchants that would not or could not take advantage of e-sign. On the other hand I'm not sure how many merchants actually read the contract anyway.

JB good point. The one thing I would add to mcnetwork's thought is for as many UN-tech savvy merchants there are probably that many that would appreciate the process and ease.

[Sean Cash]

I was an account rep not too long ago and there were still small businesses in middle america that didn't have fax machines or computers. They had healthy businesses but they'd have to drive 10-15 miles to a fedex kinkos just to send documents. Some business owners would only communicate via postal mail. I had a good number of merchants that would send the original copies of their statements via fedex or snail mail so that I could copy them and then I'd have to mail back their originals. It was a nightmare but these people wouldn't do it any other way. As Finance1 said, this tended to be with the over 50 crowd.

[Gini Co]

ok so the merchant likes to fill out the app by hand and sign, nothing to do there but wait for a generational shift..... What's the break down of agents who take that app and data enter the info into a funder's portal vs. emailing a package with pdfs? 90/10, 80/20 email to portal? Is the portal practical to agents who submit to multiple funders?

[MTY MSI]

If it's an onsite origination you can use a tablet that has digital pen capability or a laptop with a signature pad for the merchant to sign then email the app to the funder & to the merchant (provided they have an email address) thereby creating a paperless process. For gathering the requested documentation a smartphone with a scanner app or a portable scanner makes that paperless too. Without question there is a generational gap. You run into the same problem with cardless vs. conventional loyalty programs. For non onsite originations the fax will be around for probably another 15-20 years as there are a good amount from the baby boomer generation that have no clue about digital technology.

[JayBallentine]

We all have telephones.

An entire underwriting process can start there. We are all used to being prompted to do this, and that when we are on the phone. As long as one is PCI compliant you can do some things.

What's really holding this industry back is that there is no centralized way to get merchant processing data. However, this can just be solved using code an algorithms if you build on top of Yodlee.

You can have a merchant on the phone with a live agent who explains the program, etc. Then the live agent transfers the merchant to a system where instead of them having to fax papers back and forth, they enter all of their vitals right there into their phone.

So the merchant enters their banking info, social, etc. into a PCI compliant IVR system. The stuff you can't enter into the system by phone will have already be entered in by the live agent.

Once the merchant finishes entering their info, the data goes to underwriting. Underwriting should be able to see all the things they see on those pieces of paper - and then some. If you have someone's entire banking profile it gives you a new set of data points to evaluate and potentially "productize."

This set up is deal for the busy merchant or a merchant in Kalispell Montana with limited access. The underwriter presses buttons about what he needs from the deal, and this triggers a package to be printed ... and an alert from someone in the org to make sure it gets out through FedEx... Perhaps maybe include return postage on behalf of merchants for the documents requiring their signature, their lease agreements, etc.

[Chambo]

What percent of the industry still submits/processes hand-written applications (bank/processing) by email PDF or FAX?

Why have we not fully embraced the digital age? This industry has supposedly found ways to leverage technology to make it economically feasible to market to, underwrite, and finance small dollar deals ($10K-$150K). Seems like as a whole there is still much work to be done on the technology side.

Where's the disconnect? [Merchant - Agent], [Agent - Funder]?

Are merchants not savvy (or trustful) enough fill out a complete digital or online application and sign electronically?

Do those funders who have all the technology on their end find agents and merchants who are willing to do the data entry in order to get a fast response?

You would be shocked at how many merchant are NOT technically saavy at all. Not to mention, you want physical signature to prove it isn't the besmerched offcie manager with access to bank statements embezzling

[Chambo]

We all have telephones.

An entire underwriting process can start there. We are all used to being prompted to do this, and that when we are on the phone. As long as one is PCI compliant you can do some things.

What's really holding this industry back is that there is no centralized way to get merchant processing data. However, this can just be solved using code an algorithms if you build on top of Yodlee.

You can have a merchant on the phone with a live agent who explains the program, etc. Then the live agent transfers the merchant to a system where instead of them having to fax papers back and forth, they enter all of their vitals right there into their phone.

So the merchant enters their banking info, social, etc. into a PCI compliant IVR system. The stuff you can't enter into the system by phone will have already be entered in by the live agent.

Once the merchant finishes entering their info, the data goes to underwriting. Underwriting should be able to see all the things they see on those pieces of paper - and then some. If you have someone's entire banking profile it gives you a new set of data points to evaluate and potentially "productize."

This set up is deal for the busy merchant or a merchant in Kalispell Montana with limited access. The underwriter presses buttons about what he needs from the deal, and this triggers a package to be printed ... and an alert from someone in the org to make sure it gets out through FedEx... Perhaps maybe include return postage on behalf of merchants for the documents requiring their signature, their lease agreements, etc.

This scenario sounds rife with ID theft potential. what people seem to forget here is, this is sensitive financial data that you are talking about being shared with a non specific number of entities? Taken and regarded at the whim of a third party?

At least the current way, the merchant has to willingly send the actual documents...whether digitally or via fax.

A good lawyer would have a field day with that.

[JayBallentine]

This scenario sounds rife with ID theft potential. what people seem to forget here is, this is sensitive financial data that you are talking about being shared with a non specific number of entities? Taken and regarded at the whim of a third party?

At least the current way, the merchant has to willingly send the actual documents...whether digitally or via fax.

A good lawyer would have a field day with that.

You remember when caller ID came out, and everyone was up in arms? It was a travesty. Privacy had been violated... the world was coming to an end. Now, today, we rely on it. GrubHub built a business on the fax machine, and that darn fax machine may ultimately be the thing that scuttles their impending IPO (if it's scuttled).

I'd much prefer to have my data on an encrypted token somewhere, than on some guys' desk for when the cleaning lady comes by....