Five Star Bank partners with software firm on digital loans

WARSAW — Five Star Bank is now offering digital-loan origination for small businesses through its partnership with Numerated, a Boston, Massachusetts–based software company.  Five Star Bank is the wholly owned community bank subsidiary of Financial Institutions, Inc. (NASDAQ: FISI), which is headquartered in Warsaw in Wyoming County in Western New York and has branches across […]

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WARSAW — Five Star Bank is now offering digital-loan origination for small businesses through its partnership with Numerated, a Boston, Massachusetts–based software company. 

Five Star Bank is the wholly owned community bank subsidiary of Financial Institutions, Inc. (NASDAQ: FISI), which is headquartered in Warsaw in Wyoming County in Western New York and has branches across that region and Central New York, including Auburn, Geneva, and Waterloo. Five Star Bank earlier this year entered the Syracuse market with a new commercial-loan production office at 115 Solar St. in the city’s Franklin Square area.

In the partnership with Numerated, new or existing New York small-business customers with a Five Star Bank business checking account may apply for term loans and lines of credit for total lending exposure of up to $250,000. They can apply online at www.five-starbank.com. 

“We understand that business owners need ready access to capital to run their businesses, from managing cash flow to investing in inventory and equipment to support their growth,” Jeanne Stegmeier, VP and small-business leader with Five Star Bank, said in a news release. “Through our expanded partnership with Numerated, new and existing small business customers now have the option to apply for a loan or line of credit online…” 

Five Star originally partnered with Numerated to support its participation in the federal Paycheck Protection Program (PPP), which involved forgivable loans designed to keep businesses afloat during the COVID crisis, in 2020 and 2021. Through both rounds of the PPP, the bank provided about 2,900 small businesses with more than $370 million in loans. 

By leveraging the online loan-origination capabilities of Numerated, a business-banking fintech, Five Star is expanding its suite of products dedicated to supporting small businesses, the bank said. Services include payment management, remote deposit capabilities, and access to the Five Star Bank Marketplace of third-party financial apps.       

Eric Reinhardt: