Fundation Awarded Semifinalist for EY Entrepreneur Of The Year® 2017 in New York
Fundation Awarded Semifinalist for EY
Entrepreneur Of The Year® 2017 in New York
Recognition of Excellence in Innovation and Commitment to Communities
NEW YORK, April 27, 2017 – EY today announced that Sam Graziano, CEO of Fundation, and Doug Gordon, Executive Director, Platform Operations of Fundation, are semifinalists for the Entrepreneur Of The Year® 2017 Award in the New York Region. The awards program, which is celebrating its 31st year, recognizes entrepreneurs who are excelling in areas such as innovation, financial performance and personal commitment to their businesses and communities. Sam Graziano and Doug Gordon were selected as semifinalists by a panel of independent judges. Award winners will be announced at a special gala event on Thursday, June 22, 2017 at the Marriott Marquis.
Sam Graziano, CEO of Fundation said, “We are honored to be recognized by EY as semifinalists for this prestigious award. While this award may ultimately recognize Doug and I as individuals, every successful entrepreneur recognizes that people are the greatest asset to any company. We have been fortunate to build Fundation with the most talented people in our industry who are hard at work building the best digital lending company in the small business market.”
Now in its 31st year, the program has expanded to recognize business leaders in over 145 cities and more than 60 countries throughout the world.
About Fundation
Fundation Group LLC is a digitally-enabled lender and credit solutions provider. The Company develops integrated small business lending solutions with banks, enabling them to deliver credit online, drive cost efficiency into their lending programs and maximize customer retention by providing a positive customer experience and meeting the needs of the small businesses they serve. The Company also partners with a variety of organizations that serve the small business market in various capacities to deliver small balance commercial credit products. For more information, please visit www.fundation.com.
About Entrepreneur Of The Year®
Entrepreneur Of The Year®, founded by EY, is the world’s most prestigious business awards program for entrepreneurs, chosen from an independent panel of judges including entrepreneurs and prominent leaders from business, finance, and the local community. The program makes a difference through the way it encourages entrepreneurial activity among those with potential and recognizes the contribution of people who inspire others with their vision, leadership and achievement. As the first and only truly global awards program of its kind, Entrepreneur Of The Year celebrates those who are building and leading successful, growing and dynamic businesses, recognizing them through regional, national and global awards programs in over 145 cities and more than 60 countries. ey.com/eoy
About EY
EY is a global leader in assurance, tax, transaction and advisory services. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. We develop outstanding leaders who team to deliver on our promises to all of our stakeholders. In so doing, we play a critical role in building a better working world for our people, for our clients and for our communities.
EY refers to the global organization, and may refer to one or more of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. For more information about our organization, please visit ey.com.
Media Contact:
Fundation
Barry Feierstein
[email protected]
571-418-6387
Ixonia Bank Announces Expansion of Small Business Lending Efforts
Ixonia Bank Announces Expansion of Small Business Lending Efforts
Provides Greater Opportunity for Ixonia Bank to Serve Small Businesses in the Community Offers Simple Loan Terms, Quick Application Process and World-Class Customer Service
IXONIA, WISCONSIN and NEW YORK – April 18, 2017 – Ixonia Bank announced today that it has joined the Small Business Loan Program created by BancAlliance and Fundation.
The Small Business Loan Program introduces a new financial technology platform that allows small businesses to access an online portal that will guide each small business customer to the products that best meet its unique need. This program is designed to enable banks to address the challenges of underwriting small businesses by providing a simplified and streamlined borrowing experience. Ixonia Bank’s small business customers now have the ability to apply online by visiting www.IxoniaBank.com and certain eligible customers may receive approval in as little as one business day.
Mark Wierman, President of Ixonia Bank, commented, “Our partnership with Fundation will provide a quick and efficient way for small business owners to apply for loans online in a way that is convenient for them. While our focus on personalized customer service and relationship banking remains as strong as always, the online lending market is rapidly evolving and this program helps us meet the needs of small businesses that may not otherwise be aware of our products and services.”
Fundation provides credit for working capital and expansion purposes to a wide array of businesses nationally. Unlike most non-bank lenders, Fundation’s products are conventional loan products but using its best-in-class technology platform, Fundation makes the process for applying for credit an extremely efficient and customer friendly process. Fundation has been the recipient of the “Best Working Capital” loan award by Business News Daily for three years in a row because of its outstanding online application process and dedicated customer relationship management.
Sam Graziano, CEO of Fundation, said, “We are invested in driving the success of small business owners and partnering with Ixonia Bank to do just that. The program we have created with our partner BancAlliance is unmatched within the industry, empowering community banks like Ixonia Bank to serve their small business customer base and their local communities in an unparalleled way.” Brian Graham, CEO of BancAlliance, stated: “Our commitment is to the asset growth and diversification of the community banks we serve with a focus on expanding their relevance to their customers. This unique partnership with Fundation puts community banks at the forefront to be competitive with larger lending institutions without changing the traditional mission of community banking.”
Ixonia Bank
W1046 Marietta Avenue • PO Box 110
Ixonia, WI 53036
(920) 262-6959 | (262) 567-7509
About Ixonia Bank
For nearly 100 years, Ixonia Bank has been offering a full suite of business banking products and an a wide array of financial services including personal checking, savings, personal loans, and wealth management services. Ixonia Bank was established in 1918 in Ixonia, Wisconsin; since then the Bank has grown to offer services at six locations throughout Waukesha and Jefferson Counties. To learn more about Ixonia Bank, please visit the Bank’s website at www.ixoniabank.com. Member FDIC. Ixonia Bank NMLS#: 423065
About Fundation
Fundation Group LLC is a digitally-enabled lender and credit solutions provider. The Company develops integrated small business lending solutions with banks, enabling them to deliver credit online, drive cost efficiency into their lending programs, and maximizing customer retention by providing a positive customer experience and meeting the needs of the small businesses they serve. The Company also partners with a wide array of organizations that serve the small business market in various capacities to deliver credit products to the business community nationwide. For more information, please visit www.fundation.com.
About BancAlliance
BancAlliance is a collaborative network of community banks that offers an array of lending programs and business services that might not otherwise be available to its members. The services of BancAlliance are designed to expand the impact and reach of member banks, enhancing their profitability, serving their customers in new ways, and growing and diversifying their loan portfolios. BancAlliance’s mission is to enable its members, the banks that direct its activities, to prudently diversify into high-quality loans in a manner consistent with the highest commercial and regulatory standards – without changing the nature or mission of the traditional community bank. BancAlliance has member banks located throughout our country. Learn more at www.bancalliance.com.
Media Contacts:
Ixonia Bank
Mark Wierman, President [email protected] 262-560-7352
Fundation
Barry Feierstein
[email protected]
571-418-6387
Fundation CEO says marketplace lenders moving to balance sheet funding in 2017 Exclusive
Q&A
Fundation CEO says marketplace lenders moving to balance sheet funding in 2017 Exclusive
Thursday, 30 March 2017 10:53 AM ET
By Kate Garber
➤ Balance sheet funding model likely to win out among marketplace lenders, and they need permanent, diverse capital sources to weather credit cycles.
➤ OCC fintech charter applicants should expect significant oversight from regulators.
Digital small-business lender Fundation Group LLC CEO Sam Graziano spoke with S&P Global Market Intelligence about the company's balance sheet funding model and expectations for the OCC's proposed fintech charter. Graziano also shared his take on the broader digital lending industry. He pointed out that the word "profitability" was floated more at a recent industry conference and suggested that there is "an acute awareness" among digital lenders that they must prove they are sustainable by making money.
The following is a version of that conversation which was edited for clarity.
S&P Global Market Intelligence: Last time we spoke, which was in December 2016, we talked about your new partnership with Citizens Financial Group Inc. We also touched on bank partnerships and the merits of the OCC's proposed charter. What's new at Fundation since then?
Sam Graziano: We're just continuing to execute our strategy, which we're even more confident in. We do see the competitive environment within small business to be softening a bit, which is good for our long-term prospects as well as the other well-capitalized institutions in the market. We have nothing new yet to announce on other bank partnerships, but our pipeline is very strong.
Fundation announced March 21 that it secured an asset backed credit facility from MidCap Financial Services LLC. Graziano said the deal is another example of how the company is optimizing its balance sheet structure and gathering the capital and flexibility it needs to lend to more small businesses.
It adds leverage to our portfolio. We are a balance-sheet driven business predominantly. We put our balance sheet at risk. We do believe adamantly that that is the right model for the broader marketplace lending industry.
In fact, I think most marketplace lenders will end up with some form of balance sheet funding, probably by the end of the year. I think almost every firm in the space is taking that viewpoint which is that developing businesses that make money in lending is hard to do if you don't have a balance sheet.
Do you feel confident in Fundation's ability to shore up funding in the event of something like a turn in the credit cycle?
It's always harder in the midst of a credit cycle to secure funding. The magic is to be able to develop as permanent and diverse sources of capital as you can with very strong institutions ahead of a cycle, so that when you go into a market cycle you can take advantage of market dislocation. I think that's really what we're trying to do.
None of the arrangements that we will end up with from a capital supplier perspective will be like a marketplace model where it's: "hey, you can buy loans today, but if you don't feel like it tomorrow you can stop." That's not sticky, defensible capital. We're looking to develop more permanent, more long-term relationships with our capital suppliers that can support our balance sheet across cycles.
More details have come out on the OCC charter and more broadly there is the sense that financial institutions will benefit from regulatory roll-back. What's your take on how the new environment in Washington could affect digital lenders?
There are still more details to come, but I thought the OCC bulletin on the initial framework was extremely interesting. I thought it actually did give a pretty good amount of details. It does feel like there's a lot of momentum in that direction, to allow the industry to basically operate under a national framework, which I think ultimately would be beneficial to both consumers and small businesses.
What's interesting though is they also do make it clear that regulation of those that adopt the special charter will be substantial. It's not as if it's going to be a free pass. It's not as if it's going to be much more lax than [what] the banks operate under. That said, I imagine, where warranted, it would be a little bit more lax because at the end of the day, these are not deposit-taking institutions. Most of the companies I imagine will pursue the charter are lending institutions, none of which present any type of systemic risk to the financial services industry or to the economy at large.
One of the things that came to mind as I was looking at it was, given all the things that these institutions would need to do to be able to operate under the special charter framework, I could see some institutions saying "heck, if we're going to go this far, we might as well go all the way and basically apply for a banking license to be deposit-taking institutions."
Are you all more or less interested in applying for a charter after all of these details have come out?
I'd say we're more intrigued for sure. But we're still a ways off from making any decision. For us, it doesn't necessarily scare us off from what we've read because they make it very clear in terms of the types of products that they're going to be able to allow to have this charter.
We feel like we as a company are already in a pretty good place and potentially the level of investment we would have to make relative to others perhaps wouldn't be as large.
Fundation works with, not in place of, banks
Fundation works with, not in place of, banks
Tony Zerucha, March 27, 2017
In fintech’s early moments much of the talk was how these new tech upstarts were going to eliminate the big banks. Emboldened by spending their formative years in the midst of recession, many entrepreneurs (and rightly so) worked to create trust in finance by providing products and services from outside the system to meet the needs of those disaffected by it.
You don’t hear so much talk about the banks going away any more. In some corners you never did.
There definitely isn’t such talk at Fundation, CEO Sam Graziano said. A direct lender, Fundation commits their own capital to finance institutions’ small business loans. They hold them on their balance sheet and manage the loan servicing.
“We made a conscious decision a couple of years ago that we were going to build an enterprise that is an integrated part of the banking system,” Mr. Graziano said. “At the time the talk was technology was going to replace the banking system. You don’t hear that now.”
Many institutions find small business lending problematic as they seek to balance cost efficiency and reward. If you spend the same to underwrite both a $50,000 loan and a $250,000 loan, and there is enough business in the latter range, why swim with the small fish?
Advancements in technology make it worthwhile to work with those seeking small sums, Mr. Graziano said.
“Fundation helps banks engineer the small business lending process. We assist our partners with leveraging technology to improve service or expand their products and services.”
The recipe is a successful one. Fundation has grown over the past 18 months as they’ve cemented integrated lending partnerships with Regions Bank in the fall of 2015 and Citizens Bank last December. Expect more such announcements in the future.
Bank executives have of course noticed developments in fintech but, especially at the largest institutions, change is easier said than done, Mr. Graziano said. But they do have choices as they look to capitalize on the technology. Some develop their own capabilities while others acquire companies that have developed the technology they need. A third option is to outsource their technology needs by working with providers to develop white label solutions that work for their environment.
Before jumping in there a many factors to consider, Mr. Graziano said. First, decide how important this investment is to your business, because you are about to embark on a complex, and potentially expensive, decision-making process.
Are your expectations reasonable? Is their a justifiable ROI?
Mobile banking is growing in popularity and will serve some needs, but Mr. Graziano said he has yet to hear from one mobile banking provider who is delivering everything customers want to do via mobile. He sees customers mostly wanting to conduct more routine transactions through their mobile devices.
“For the more emotional decisions like borrowing and wealth management people want to talk to someone,” Mr. Graziano said.
But not all aspects of wealth management, Mr. Graziano explained. He sees advisors losing huge fees through systematic robo advisory services as customers move to lower cost investment vehicles such as ETFs. Some aspects of mortgages, insurance and deposit accounts are other areas that can be automated.
“I also think biometrics are one of those trends where you are going to see a lot of change happen,” Mr. Graziano continued. “People have to remember hundreds of passwords. Biometrics create a more convenient way for consumers