Merchants Bank launched its digital floorplan strategy following a four-month program to introduce new software that automates business processes, reduces administration and enhances the finance customer experience.

The bank was prompted to make the move after requests from customers to introduce a more efficient way of managing floorplan finance.

“We originally managed the process manually through traditional spreadsheets, which created unavoidable issues with human error,” said Dan Massett, regional president of the 140-year-old bank. “We then had a problem with items funded by floorplan finance appearing as individual loans on statements. What really prompted the review was one of our largest customers stating though they loved the personal relationship they had with us, the administration involved in the floorplan piece of their relationship was making it very difficult to keep that business with us.”

Operating in the states of Minnesota and Wisconsin, the community bank began the search for a vendor by working closely with its floorplan finance customer base. This included auto dealerships and a range of merchants selling specialized equipment, such as marine and powersports equipment.

Merchant ultimately chose CALMS Compass, a floorplan finance solution from Atlanta-based finance technology provider White Clarke Group.

The CALMS Compass solution supports floorplan business processes from initial credit review to full loan and portfolio servicing, automating labor-intensive tasks while providing exception-based portfolio management to control risk.

Merchants Bank’s customer base now has access to a 24/7 self-serve solution that allows dealers, suppliers, manufacturers and auction partners to conduct business on their own schedules.

CALMS Compass offers rules-based electronic onboarding of inventory receivables, electronic disbursements and drafting, supplier integration, title and insurance tracking, auto debiting and payment application as standard features. It also provides customizable automated workflows so lenders can refocus their resources on more strategic areas.

Reports include turn time of inventory, interest expense and curtailment notifications.

Merchants plans to continue following its ongoing digital roadmap, incorporating initiatives ranging from commercial online and mobile banking to treasury management.

“There is a growing expectation of digital services at all levels,” Masset stated. “We have several digital projects in the mix.”

White Clarke Group provides end-to-end loan origination, servicing, collections and floorplan/wholesale finance technology for the automotive, consumer and equipment finance sectors.