Parlay Finance and First Internet Bank Join Forces to Modernize SBA Lending

Rhea-AI Summary

First Internet Bank (NASDAQ:INBK) and Parlay Finance announced a partnership to deploy Parlay's AI-native Loan Intelligence System (LIS) for SBA lending on Oct 16, 2025. The LIS automates intake, validates documents and financials, and builds institutional lending intelligence.

The bank says the implementation lets its SBA team process significantly higher application volumes with existing staff and anticipates up to a 50% increase in efficiencies across the lending process while improving borrower onboarding and decision speed.

Positive

• Up to 50% increase in lending-process efficiencies
• Ability to process significantly higher application volumes with existing staff
• AI-powered validation across credit bureaus, financials, tax records and incorporation documents
• Real-time onboarding and borrower guidance improving submission speed and accuracy

Negative

• None.

Insights

Banking technology strategist

Partnership likely improves SBA lending capacity and borrower experience by automating manual underwriting steps and capturing institutional decision logic.

First Internet Bank will deploy Parlay Finance's AI-native Loan Intelligence System to streamline SBA intake, validate documents, and surface AI-powered analysis. The system shifts hours of manual work into automated workflows, and the bank cites an anticipated 50% efficiency gain, which directly increases processing capacity without adding headcount.

The benefits depend on data quality, integration fidelity, and governance around the AI models. Operational risk includes implementation issues, false positives/negatives in automated validation, and the need to preserve relationship-driven underwriting judgments. The announcement states Parlay integrated into the bank's tech stack and delivered immediate gains, which supports feasibility but does not quantify measured KPIs beyond the efficiency estimate.

Watch for measured throughput and accuracy metrics over the next 6–12 months, such as application cycle time, manual touchpoints per file, and validation error rates. Also monitor governance items: model oversight, audit trails of decision logic, and borrower satisfaction scores after rollout; those will determine whether the claimed efficiency becomes durable.

AI-native Loan Intelligence System (LIS) to deliver faster decisions and enhanced borrower experience.

WASHINGTON, Oct. 16, 2025 /PRNewswire/ -- Parlay Finance announced today a partnership with First Internet Bank to deploy its AI-native Loan Intelligence System (LIS). The move allows the bank's Small Business Administration (SBA) lending operations team to eliminate manual tasks and gain deeper insights for loan decisioning.

The partnership addresses a critical industry challenge. Amid surging SBA demand, lenders require technology to scale operations efficiently without sacrificing the relationship-first approach and rigorous underwriting that define small business lending. With the implementation of Parlay, First Internet Bank is able to process significantly higher application volumes with its existing team, while delivering well-informed decisions and a transformed borrower experience. The bank anticipates up to a 50% increase in efficiencies throughout the lending process.

Partnership Delivers Immediate Results

Parlay's LIS combines AI with tailored automation to streamline intake complexity. Borrowers can submit an inquiry and quickly receive real-time insights on their business health, application status and next steps. Behind the scenes, the platform handles work that used to consume operational hours per application – capturing user-permissioned data, cross-referencing financial statements, validating documents and building an AI-powered analysis for the lending team.

Unlike traditional loan origination systems that simply record transactions, Parlay's LIS captures specific decision-making patterns, building institutional intelligence that can be scaled across organizations.

"Partnering with Parlay has allowed us to reclaim hours once spent on manual data entry and repetitive tasks," said Nicole Lorch, President and Chief Operating Officer of First Internet Bank. "Now, our team has more time to focus on what matters most - better serving our customers and deepening relationships."

"Parlay integrated seamlessly into our tech stack, instantly boosting data quality and workflow efficiency," added Craig Fortner, Senior Vice President and Chief Information Officer at First Internet Bank. "It's the latest example of how we're leveraging innovative solutions to better serve our clients and empower our team."

Parlay's system delivers:

• Real-time customer onboarding and guidance that improves submission speed and accuracy
• Intelligent information validation across data sources, including credit bureaus, financial statements, tax records and incorporation documents
• Faster, more informed decisions through AI-powered analysis that accelerates pre-vetting and deal structuring
• Institutional lending intelligence that captures and scales First Internet Bank's unique expertise

"First Internet Bank pioneered branchless banking in 1999. Now they're showing the industry how AI strengthens relationship banking and enables lenders to serve far more small businesses," said Alex McLeod, Founder and Chief Executive Officer of Parlay Finance. "By moving first, First Internet Bank is building institutional lending intelligence and securing a competitive advantage that grows stronger with every single loan."

For more information about Parlay and its Loan Intelligence System, please visit parlay.finance. To learn more about First Internet Bank, please visit firstib.com.

About Parlay Finance

Parlay Finance's AI-native Loan Intelligence System revolutionizes SBA and small business loan intake. Designed to complement existing technologies like Loan Origination Systems and core banking systems, Parlay enables lenders to expand capital access, increase loan volume, and improve efficiency and profitability while preserving strong credit quality.

About First Internet Bank

First Internet Bank opened for business in 1999 as an industry pioneer in the branchless

delivery of banking services. With assets of $6.1 Billion as of June 30, 2025, the Bank provides consumer and small business deposits, consumer loans and specialty finance services nationally. The Bank also offers commercial real estate loans, commercial and industrial loans, SBA financing and treasury management services. Additional information about the Bank, including its products and services, is available at firstib.com. The Bank is a wholly-owned subsidiary of First Internet Bancorp (Nasdaq: INBK). First Internet Bank is a Member, FDIC.

Contact Information
Media for Parlay Finance:
Jay Long
contact@parlay.finance

First Internet Bank Investor Relations:
Paula Deemer
Director of Corporate Administration
(317) 428-4628
investors@firstib.com

Media for First Internet Bank:
PANBlast for First Internet Bank
Ryan Hecker
firstib@panblastpr.com

View original content to download multimedia:https://www.prnewswire.com/news-releases/parlay-finance-and-first-internet-bank-join-forces-to-modernize-sba-lending-302585760.html

SOURCE Parlay Finance

FAQ

What did First Internet Bank announce about SBA lending with Parlay Finance on Oct 16, 2025 (INBK)?

First Internet Bank announced it will deploy Parlay's AI-native Loan Intelligence System to streamline SBA lending and improve borrower experience.

How much efficiency improvement did First Internet Bank forecast from the Parlay LIS (INBK)?

The bank anticipates up to a 50% increase in efficiencies across the lending process.

Will First Internet Bank need to hire more staff after deploying Parlay's LIS (INBK)?

According to the announcement, the bank can process significantly higher application volumes with its existing team.

What data sources does Parlay's LIS validate for First Internet Bank SBA loans (INBK)?

The system validates information across credit bureaus, financial statements, tax records and incorporation documents.

How does Parlay's Loan Intelligence System change borrower onboarding for First Internet Bank (INBK)?

It provides real-time onboarding and guidance so borrowers receive faster status updates and next-step instructions during submission.