USE CASE 02 / BANKING · SMB LENDING
Auto-adjudication from 20–40% into Tier-1 ranges.
The problem.
SMB lending is the mid-size bank's highest-margin, highest-friction product.
- —Tier-1 banks auto-adjudicate 80–90% of small business credit.
- —Mid-size banks sit at 20–40%.
- —The balance routes to manual review queues that take days to weeks.
- —Profitable applicants walk away on speed.
- —Adverse selection sets in among the borrowers willing to wait.
Extending automation into larger and more complex SMB tickets is hard because open-banking feeds are inconsistent, accounting connectors fail silently, beneficial-ownership data is fragmented, and Explainable-AI requirements collide with fair-lending scrutiny.
The Wedge — SMB Entity Hub (banks) / Business Member Hub (credit unions).
- —Unified SMB record fusing business, beneficial owners, related parties, open-banking cash-flow feeds, tax filings, and accounting/ERP connectors. Lineage-tracked, attribute-level confidence.
- —Streaming cash-flow analytics that categorize business bank statements continuously — credit signal current to yesterday, not last quarter.
- —Covenant and early-warning graph linking transactional anomalies, industry exposure, and post-funding behavior.
- —The same substrate adjudicates and monitors — meaningfully reducing PCL/ACL across the book over a 24-month horizon.
Engineering wrap — Credit Memo Copilot / Member Business Credit Copilot.
An agent assembles the resolved entity, runs the bank's existing risk models (or scorecards where they don't exist), drafts the narrative memo with every claim hyperlinked back to its source, and presents it for adjudicator sign-off with a full audit trail.
The same substrate carries forward into continuous post-funding monitoring, replacing the quarterly covenant review with continuous observation.
Credit-union variant.
- —MBL cap headroom telemetry built in — real-time view of how each new loan affects the 12.25% NCUA calculation.
- —SBA pre-qualification logic baked in.
- —Participation-aware covenant graph across the credit union's share and any participated portions.