Live Oak Bank deploys Finxact core for deposits and loans
US-based Live Oak Bank has gone live with a core banking system provided by Finxact.
The Finxact solution is powering the bank’s deposits and paycheck protection program (PPP) loan portfolio.
Live Oak Bank specialises in business loans guaranteed by the Small Business Administration (SBA). The firm is one of the largest originators of SBA-backed loans in the US.
The bank holds around $8 billion in assets, and a reported a net income of $18 million in 2019.
“This is a significant milestone for Live Oak Bank,” says CEO Chip Mahan.
“We have put an incredible amount of energy into recreating the financial services landscape, and a modern core is key to that transformation.”
Finxact and Live Oak Bank signed their first partnership deal in 2018, with then-CEO Neil Underwood predicting that the first iteration of the Finxact system would be live by the end of that year.
The vendor’s technology is integrated with several other fintech solutions. These include Savana for account servicing, Apiture for digital origination, and nCino for lending. The bank’s licence for the latter expires in November 2021.
Testing and investment
Testing for the new Finxact core started in January 2020, according to the bank’s 2019 annual report.
Live Oak Bank is an investor in Finxact through its Live Oak Ventures programme. It holds a 16% stake in the company. During the year ending December 2018 it invested $5.2 million in the vendor.
“We’re excited to provide the core banking platform that Live Oak Bank will rely on to implement their vision of the future of banking in the digital era,” said Frank Sanchez, CEO and founder of Finxact.
“We worked very closely with the bank and best-in-class fintech providers to deliver a scalable, agile and regulatory compliant solution that will allow Live Oak to innovate and evolve their business on their own terms.”