Tag: loans

FinLocker provides a secure financial data and analytics platform and works with mortgage lenders to reduce borrower frustrations and lender costs associated in getting a mortgage approved as fast as possible, while increasing certainty for investors. FinLocker accomplishes this by electronically capturing and analyzing borrower data such as employment, income, assets, credit, and other information. Consumers are able to share their financial information without worrying about that information being compromised. FinLocker provides greater certainty to lenders while reducing costs, risk, and potential fraud.

FinLocker has asked the CELect team to determine how it can leverage its technology to aid lenders in areas other than mortgages.

Our team is working with FinLocker to determine which area will provide the best opportunities and make the greatest impact for FinLocker, lenders, and investors. In order to accomplish this, our team will research different types of loans (student loans, auto loans, personal loans, rental, consolidated loans, small business loans, and peer-to-peer lending), and determine which is most attractive. Once we determine which type of loan is most attractive, our team will learn exactly how FinLocker can add value to lenders and investors for those loans.

finlockerOur team is thrilled for the opportunity to work with FinLocker and its experienced team. We are thankful for this real world experience through Washington University in St. Louis’ Center for Experiential Learning and are excited to be a part of FinLocker’s efforts to change the lending landscape.

CELect Team: Mike Manovich, Law; Cole West, BSBA; Tyler Combest, Law; David Allston, MBA

Professor Jared Jennings takes questions after presenting his research.

Professor Jared Jennings takes questions after presenting his research.

Assistant Professor of Accounting Jared Jennings presented research focusing on management forecasting in debt contract negotiations to a corporate audience as part of Olin’s Business Research Series, Jan. 27 in Bauer Hall.

Previous research in this area has focused on the monitoring role of historical information in debt contracting. Jennings’ research focuses on the use of information obtained during the screening process prior to a loan contract’s inception. The researchers analyzed management forecasts and their accuracy to measure the borrower’s ability to anticipate and respond to future economic conditions.

The researchers found that there was an almost 12% reduction in the initial debt contract spread between borrowers with the least and most accurate management forecasts.

Don Dent, Dick Mahoney and Jared Jennings discuss his research after the presentation.

Don Dent, Dick Mahoney and Jared Jennings discuss his research after the presentation.

Olin’s Business Research Series, features recent faculty research including annual winners of the Olin Award. Faculty presentations throughout the year and executive summaries published on the Olin website aim to translate noted academic papers into nuggets of valuable information that managers can apply in today’s competitive global marketplace.

Jenning’s presentation included research published in his paper, “Are better forecasters better borrowers? Management forecast accuracy and the cost of debt.”  The paper was a top contender in the  2015 Olin Award competition that honors research that impacts business.

Contact and learn more about Professor Jennings here.

The Olin Award and Business Research Series are sponsored by Richard J. Mahoney, Olin Distinguished Executive in Residence and former chairman and CEO of Monsanto.
Link to Olin faculty research here.