Orchard, who specializes in connecting originators with investors today announced the Orchard Data Partner program. Orchard has tracked originators on an anonymized basis for quite some time (as seen in their latest consumer lending report), but the new data partner program is a little bit different.
Qualifying originators will now be able to analyze and compare loan performance to their competitors and also share their own data with capital partners. Data is standardized and anonymized. Originators benefit by knowing their datasets are verified and complete and investors benefit by having access to standardized data across assets classes and originators. This also assists investors in the due diligence process.
Currently, the Data Partner Program tracks over $33 billion in originations. Orchard performs quality assurance checks and sends reports to originators to proactively check for issues. If any issues are found in the underlying data, Orchard works with the originator.
According to Matt Burton, CEO of Orchard:
This is a game-changer for our origination partners, because they now gain assurance that their datasets are verified and complete, while investors gain access to consistent and standardized datasets. The due diligence process that originators face when dealing with institutional investors has become more difficult and time-consuming. The Orchard Data Partner Program supports their ability to maintain investor confidence and execute with greater transparency at scale.
The other big piece of this announcement relates to the investors. Carlos Nogueira, an investment team member at VanEck Associates Corporation stated:
The ability to seamlessly access standardized loan-level data from originators through Orchard can support investors’ ability to seek to transact more efficiently. We are big supporters of online lending and are pleased to see the ecosystem mature in a robust manner that provides enhanced disclosure and insights.
Conclusion
Orchard has been very successful at attracting originators and this new program will further promote originators to jump on board if they haven’t already. For originators there is a big benefit to being able to benchmark themselves against their competitors. The creation of the Orchard Data Program also gives more transparency to investors and further solidifies Orchard as the place to go to explore opportunities and evaluate platforms.
