Teslar Software is preparing to launch a new indirect lending solution for community banks.

The Springdale, Ark.-based software-as-a-solution (SaaS) platform showcased its new product, which automates and digitizes the underwriting process, during the recent FinovateFall 2022 in New York City.

“The goal is under 30 minutes that banker underwrites, makes a decision, and it goes back to the consumer,” Teslar Chief Executive Joe Ehrhardt told Bank Automation News today. “So, the consumer gets a quick experience for what’s usually a multiple-day experience for when underwriting has to come in.”

The automated solution allows community banks to partner with local businesses to streamline homeowner indirect loan applications for renovations or repairs, which can otherwise drive up costs for smaller community banks, Ehrhardt explained. The automation is unlike buy-now-pay-later solutions since it targets middle-range loan amounts that are often too large to put on a credit card.

“There are three major benefits to that: One, you have a better relationship with that pool company because you’re helping them finance their business; two, you are now getting a new customer who’s in your community because they’re using the local community pool builder; and three, the money has stayed local,” Ehrhardt said.

The solution integrates into banks’ core systems using Finastra’s loan documentation system LaserPro. It also integrates with image systems through XML or APIs, allowing Teslar to digitize documents such as driver’s licenses.

While the software is not yet in full production, 10 banks are in the queue to use it for loan applications for recreational vehicles, HVAC systems and tornado shelters, Ehrhardt said.

Looking ahead, Teslar is planning a major overhaul to its exception tracking system in November that will make it easier to track missing tax returns or financial statements to improve banks’ quality control of loan portfolios. The company will also launch a new digital portal for commercial customers who need additional insight into their loan applications.