Since BHG Financial’s associate membership with the AzBA, they have created partnerships with 10 Banks in Arizona that have purchased $45MM in high-quality loans. They currently work with over 50 state banking associations, providing high-quality loans and services to the various association members. While BHG Financial is an industry leader in providing high-quality loans since 2001, the company has evolved to encompass a full family of brands all designed around the unique needs of community banks.
Fourteen-hundred-plus financial institutions partner with BHG Financial, a testament to their understanding of the community banking industry. It is only augmented by the fact that they are 49% owned by Pinnacle Financial Partners (a bank headquartered in Nashville, Tennessee), making them stand out among a sea of fintechs as a financial services leader with a valuable perspective.
Maybe it is their unique perspective that has allowed them to partner with so many community bankers and surround them with proven solutions for successfully navigating a constantly shifting world.
The growing importance of technology for banks and their customers
Banks are all constantly being reminded of the need to embrace technology and the digital world, while trying to also maintain security, profitability and community relationships. Rather than a one-time, one-size-fits-all service, a community bank needs a true fintech partner that grows with them, fulfilling their needs today while simultaneously predicting and developing solutions for tomorrow’s roadblocks.
Right now, this comes down to technology and the modern customer’s desire for a seamless online experience. According to a study by Chase, 99% of Gen Z and 98% of millennials utilize mobile banking daily for tasks that range from reviewing their account balances to checking their credit scores. A similar study by BAI shows that 58% of Gen Z prefer to open deposit accounts online rather than in person, while 75% of millennials would switch banks for a better mobile app.
When the pandemic hastened the movement towards digital, BHG Financial was prepared; having always been innovators in financial services, they were able to quickly adapt and thrive. By investing in new technology, the company created a seamless online application process, driving easy customer applications and building loyalty even with the challenges of the pandemic. Currently, 40% of borrowers return to BHG Financial for additional financing.
With the risk of identity fraud on the rise, BHG Financial invested in remote ID verification, allowing for quick and secure customer onboarding. Further, with regulation expected to increase, BHG Financial placed a high level of importance on compliance by leveraging an internal team of industry experts to ensure the company was meeting regulatory requirements.
These in-house tools helped BHG Financial nearly double in size since the start of the pandemic, and banks can take advantage of these same proven resources to grow into this new digital age – without having to invest crucial time and millions of dollars.
Lend outside your lobby with BHG Connect’s digital lending platform
Consumer reports make it clear that people would prefer to manage their finances online. The good news is – with a simple integration – your bank can be a leader in digital transformation. BHG Connect, a suite of lending-as-a-service products, provides an end-to-end digital lending platform co-branded for your bank, allowing you to offer online loans to your customers.
According to a BHG Financial analysis, the average community bank has approximately $150 million in untapped consumer loan opportunities within their existing customer base. By providing your customers with the ability to apply for loans quickly and easily online, you can impact your bottom line and build loyalty with your clients.
Many customers (87% of Gen Z, according to a Marqueta report) prefer to maintain business with traditional financial institutions over fintechs. By providing a frictionless online experience, you can strengthen your relationships with these customers while still giving them the exceptional customer experience that community banks provide.
Keep your bank secure with cutting-edge AI from Vouched
Although community banks tend to know their clients well, in this age of digital fraud, it’s never been more important to know your customer. Working with a proven industry partner like Vouched can enhance your fraud prevention and improve KYC/CIP (Know Your Customer/Customer Identification Procedures) requirements to keep your institution safe.
Vouched combines cutting-edge AI that visually examines a customer’s identity with a multi-factor risk analysis, allowing your bank to onboard users anytime, anywhere, securely, and instantly. To date, this KYC solution has helped open over one million bank accounts and has been used to fund over $8 billion in loan transactions. Now your community bank can follow your customers across state lines, open accounts for their college-aged kids, and compliantly and safely identify them without ever needing to meet.
As a member of the BHG Bank Network, your financial institution can access this tool at a preferred pricing structure.
Stay ahead of regulatory shifts with Risk Management Solutions Group (RMSG)
As regulations continue to evolve, banks must continue to prioritize regulatory risk management and compliance. Today, these areas are top concerns for executives across the banking industry.
BHG Financial has always maintained a very stringent compliance program. They regularly undergo examinations by the FDIC and Tennessee State Banking Commission, making it a priority to ensure that all technology platforms, processes, and procedures are held to the highest standards possible.
Their top-tier regulatory team has over 500 years of combined experience, allowing them to effectively assist our banks with all federal and state regulatory agencies. Partnering with BHG Financial allows your bank to access their expertise with zero obligation to execute a work order. Banks can complete a client agreement and have RMSG on deck when situations and questions arise. Further, in the event that work is needed, RMSG can provide you with a quick and free estimate.
It’s your turn to experience the BHG Financial advantage
The AzBA couldn’t be more appreciative of the partnership BHG Financial has developed with us and our banks across the state. Their technology solutions are tailored to the challenges of the community banks.
As our industry continues to evolve, finding a partner like BHG Financial that can provide cost-effective and efficient products and services that support banks’ needs is more important than ever.
