ODX, LLC and Fundation announced today they will merge to become Linear Financial Technologies. Linear provides loan origination, account opening and AI-based analytics solutions to financial institutions and is expanding its SaaS solutions to international clients and clients outside of banking.
Sam Graziano, CEO and co-founder of Fundation will become CEO of Linear, while Brian Geary, the President of ODX will become President of Linear. Graziano outlined the thinking behind the merger:
Our combination came about out of mutual respect for one another. After a couple of years of competing head to head, we realized that we were often the two finalists in many competitive processes when large financial institutions were assessing their digital origination needs in small business. We believe we are now even more uniquely positioned in our market segment, because our solutions are technology and insights, not just technology. Our near-term objectives are to expand our origination capabilities to facilitate the full suite of small business products and launch AI driven solutions that enable our clients to predict and manage risk more effectively. We also see a broad opportunity set to bring our capabilities into non-banking verticals.
The company will launch with an impressive list of non-bank lenders and banks including Citizens Bank, PNC, Fifth Third Bank and Bank of the West. They reportedly have 15 of the top 100 banks as clients.
Garrison Investment Group, Fundation’s majority owner, will take a majority equity interest in Linear and Enova, which owns ODX’s parent company OnDeck, will take a minority equity interest in Linear.
Linear’s SaaS platform offers a comprehensive suite of solutions, including:
- Linear Platform Solutions: digital originations and servicing platform for credit cards, loans and deposit accounts
- Linear AI Solutions: fraud detection, credit risk scoring and account monitoring.
- Linear Integrated Credit Solutions: origination of credit products to support ‘second look’ programs, along with embedded credit and point of sale financing programs.
- Linear Vendor & Supplier Solutions: SaaS platform and point of sale financing programs of B2B and B2C suppliers and vendors.
Lenders have originated more than 400,000 loans worth more than $13bn to small businesses using Linear’s platform.