Coviance and MarketWise Advisors, LLC Release Independent ROI Study

Independent led study finds that Coviance delivers a strong ROI to its client base composed of community lenders.

June 28, 2023
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This article was originally posted on Benzinga.

Study finds that Coviance delivers a strong ROI to its client base composed of community lenders.

Coviance (formerly LenderClose), a fintech company that makes the home equity lending process simpler, faster, and more scalable, released an independent ROI study captured in the e-book, Accelerate Home Equity Lending and Unleash Efficiency. The study conducted by MarketWise Advisors, LLC, a financial services consulting advisory firm, found that Coviance customers reduced lending cycle time and increased loan productivity by using its technology platform.

MarketWise analyzed responses from 110 credit unions and community banks who on average had used the platform for over two years. Respondents held a wide range of roles – from executives, to loan processors and underwriters. The comprehensive review and analysis of the financial and operational impact of Coviance services concluded that Coviance leveled the playing field and provided significant operational and financial benefits to its clients.

"I am grateful to our customers who independently shared the meaningful impact our technology has on business outcomes," says Omar Jordan, Co-founder and CEO of Coviance. "It's why we wake up each day excited to innovate on behalf of our customers and their borrowers."

Key insights from the e-book include:

  • Coviance provided an operational backbone for lenders to increase their productivity with the same lending staff levels. This was responsible for increasing lenders loan closing ratios by 37.69%. Cycle time for processing and completing loan transactions compressed on average 4.72 days.
  • The average financial impact per loan achieved was $464.04 which is driven by operational and technology efficiencies delivered. This represented a return on investment of 5.21:1 ($5.21 average impact for every dollar invested in Coviance) - technology firms running above 5:1 is MarketWise's internal threshold to categorize technology ROI as "solid."

"Given Coviance's investment in automation, MarketWise anticipates that clients will continue to accrue additional financial and operational leverage," says Jordan Brown, CEO of MarketWise Advisors, LLC. "Coviance and its clients have an opportunity to increase the level of value delivered through increased utilization and adoption of automation technology."

The Accelerate Home Equity Lending and Unleash Efficiency e-book is available to download here.

About Coviance

Founded in 2015, Coviance (formerly LenderClose) is a fintech company on a mission to perfect the lending experience for community lenders and borrowers through automation and intelligence. A cloud-based platform, Home Equity Express™ (HEx), automates the home equity lending process through configurable workflows with data-driven decisioning intelligence elevating the lending experience for borrowers and lenders. For Credit Unions and Community Banks, Coviance is an out-of-the-box solution that is simple to implement and deploy and allows them to focus on what matters most – "the borrower's experience". Coviance earned a spot on the Inc. 5000 List of Fastest Growing Private Companies in the U.S. in 2022.

About MarketWise Advisors, LLC

MarketWise Advisors, LLC was founded in 2005 as a financial services consulting advisory firm. Over the last 18 years, MarketWise Advisors has played a key role in the industry, providing expertise to help facilitate a digital mortgage process, data/analytics to reduce risk, and IT staffing to deploy systems. Clients include a wide range of banks, mortgage firms, and credit unions across North America. MarketWise Advisors also provides significant services to the vendor community in providing data, analytics and guidance. MarketWise Advisors LLC helps lenders navigate system selection, cost of origination reporting, margin analysis, and technology evaluation.

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