OnDeck and CBA tie-in for referrals
(17 December 2015 – Australia) Following a prolonged period of negotiation, Commonwealth Bank of Australia (CBA) has partnered with online lender OnDeck to refer customers to one and other.
CBA has indicated that for a fee, it will recommend the start-up to part of it 500,000 strong business customers that do not meet its lending criteria – including the need for security, such as a family home.
OnDeck, who officially launched in November, has agreed to refer customers to CBA, again in return for a fee, where it does not have the right product for their needs.
CBA will start making referrals to OnDeck in early 2016.
The program mirrors a similar agreement between Westpac and first mover in the local online small business lending market, Prospa.
Speaking to Fairfax, Clive van Horen, CBA’s head of small business and retail banking said: "we are working with OnDeck to identify customers that may be suitable for OnDeck loans.”
"CBA has made a significant investment in small business and has a range of products to meet the needs of our small business customers. The partnership with OnDeck provides an opportunity to meet more of our small business customer needs."
OnDeck Australia chief, Cameron Poolman added: "There's great synergy between our two companies in terms of innovation, technology and customer experience. Our goal is to provide a credible alternative lending solution to small business owners and we believe our partnerships are central to reaching and conveniently servicing these businesses."
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