San Diego-based Applied Data Finance launched a loan purchasing and analytics platform for institutional investors last week.
The financial technology and consumer credit company is offering loans originating from its services for purchase through its new platform. The program, dubbed the Institutional Whole Loan Platform, has received support and investment from Colchis Capital Management. Under the deal, Colchis will be given early and preferential access to the platform.
The analytical tools through ADF’s platform enable investors to filter and rank consumer credit based on measured responsibility, risk-appropriate rates, credit and repayment risks and consumer behavior models.
ADF offers near-prime and sub-prime consumer credit and will extend this program through the Institutional Whole Loan Platform. Investors using the platform can purchase ADF’s loan and evaluate both risk and rate-of-return.
Colchis, an alternative investment management firm from San Francisco, entered a partnership with ADF to help launch the new platform. In addition to funding, Colchis will provide access to other institutional investors and other firms interested in using the platform.
“Colchis is an ideal partner for ADF as we launch a critical part of our business model, the Institutional Whole Loan Platform, which will help us expand access to credit for a key part of the population that is underserved by the banking community and misunderstood by providers of conventional measures of credit risk,” said ADF co-CEO Krishna Gopinathan.