Financial technology provider Misys has unveiled a new module that will allow retail and corporate banks provide peer-to-peer (P2P) lending to their customers.

The new module, dubbed FusionBanking CrowdLending, is born out of the vendor’s FusionReactor innovation lab and built on the Misys FusionFabric architecture.

The module offers a white-label platform that allows banks to connect lenders-such as individuals, asset managers and banks- with borrowers.

Misys said that this would help a bank maintain its client base that they would otherwise have turned away. Moreover, the loans would be originated off banks’ balance sheet to diversify risk.

The technology vendor further said that its module would allow borrowers to get access to bank’s customer network of lenders and investors for fast loan origination, and allow investors to benefit from established credit risk processes and bank infrastructure to mitigate risk.  

Misys president Simon Paris said: “Overall loan volumes are on the up, but a growing and increasingly relevant slice of the market is now being processed by independent P2P providers. With traditional lending vehicles also under pressure from marketplace lenders, banks risk missing out.

“Our approach enables banks to capture more of the opportunities in this market, and to de-risk, disrupt and quickly grow in this competitive space."