garnetAnyone who works in the financial industry is well aware of the ongoing effects of the 2008 financial crisis. Regulations are continually being created and modified. Not to say that the regulations are not necessary or well-intended but they are changing the way financial institutions do business. Banks and credit unions now have to reconsider the types of loans they take on in order to reach their revenue goals. Garnet Capital Advisors recently made recommendations on the types of loans that financial institutions should be considering in the current financial environment. The two recommendations were consumer loans and loans originated by others.

According to the article, one way for banks and credit unions to re-commit to consumer lending is through small loans, such as auto or small-business loans.

Each one of these options poses a challenge however. Finding a high enough volume of low-risk consumer loans can be difficult. This segment of consumers will have several options to chose from when picking a lender. Due to this, lenders tend to decrease rates in order to remain competitive; however, rates can only be cut so much and still be profitable. The challenge with buying loans originated by others is understanding the risks associated with the loans being purchased. Garnet Capital Advisors also points out that most companies originating these loans are making their money from origination fees which encourages them to close as many loans as possible. Similar to buying consumer loans, it is difficult to find enough low-risk loans originated by others to meet revenue goals.

While it might seem like there isn’t an option that is an appropriate balance of risk and profit, that’s where patient financing through MyLoans comes in. Rather than identifying the risk associated with each loan, MyLoans allows the financial institution to determine the credit-worthiness of the medical provider and allow that provider to book loans for their patients. This provides new loan volume to the bank or credit union without any additional risk. And since you can always count on people needing medical attention, there will be a steady flow of low-risk loans entering your bank or credit union.

About MyLoans™

By providing patients with fast access to medical loans at a fair and unchanging interest rate, the MyLoans™ software by Epic River enables financial institutions to ease the financial stress of health care through collaboration with medical providers. Not only can medical providers offer patient financing for medical care needs, but doctors and hospitals alike can finally get immediate funding of their patient’s outstanding balances. Additionally, financial institutions gain new customers and interest income with little administrative overhead in exchange for servicing the loan. For more information, visit

About Epic River, LLC
Since its inception in 2005, Epic River has been providing high quality software services aimed at solving process-intensive problems. With a focus on high quality and rapid delivery, Epic River’s methodology accelerates the process of innovation while keeping a firm grasp on the business case behind the application, enabling our partners to grow their market leadership. The company’s unique approach to the agile methodology and user experience ensures both parties work closely together every step of the way. Whether you’re looking to expand into new technologies or markets, need a custom internal tool, assistance with architecture, or simply need someone you can trust to make technology decisions, Epic River is at your service. For more information, visit