LoanPro partners CheckAlt to cut cheque processing

CheckAlt has partnered with LoanPro to add receivables and payment processing services for LoanPro customers. The agreement is aimed at lenders handling inbound payments across paper cheques and online banking bill pay.

The tie-up targets a part of loan servicing that often remains manual even when lenders have modernised their core systems. CheckAlt will provide LoanPro customers with lockbox, electronic lockbox, remote deposit capture and remote lockbox services.

These tools are intended to help lenders process cheque payments and reconcile them within their existing servicing set-up. The arrangement is designed to improve visibility into inbound payment activity and reduce the manual work involved in posting payments.

Cheque-based payments remain a practical challenge for many lenders, particularly when paper cheques are generated through online banking bill pay systems. In those cases, a digital instruction on the customer side can still produce a physical cheque that must be received, processed and matched to a loan account.

This creates an operational gap for lenders that have invested in newer lending and credit platforms but still rely on older payment handling processes. By linking LoanPro's platform with CheckAlt's receivables services, the companies aim to address that back-office bottleneck without requiring lenders to replace their servicing environment.

LoanPro said its customers had been seeking a way to handle cheque payments with less friction inside their current systems.

"LoanPro customers have been looking for a better way to manage check payments without disrupting their existing servicing environment. By partnering with CheckAlt, we're giving customers a streamlined way to improve operational efficiency while enhancing the overall borrower and back-office experience," said Charles Sweeney, CRO & COO at LoanPro.

LoanPro describes itself as a lending and credit platform used by more than 600 lenders. Its software supports loan origination, servicing, payments and collections, placing the company in a segment of the market where lenders want digital workflows while still managing a mix of payment methods.

Manual burden

For lenders, reconciling incoming cheque payments can involve several steps, from collecting remittance information to posting funds to the correct account. Delays or mismatches can increase administrative work and slow payment recognition.

CheckAlt's role in the partnership is to manage that intake process through a range of receivables services. This includes support for both physical and digital payment flows, reflecting the continued presence of paper-based instruments alongside electronic channels.

Jason Schwabline, Chief Commercial Officer at CheckAlt, said lenders have modernised some systems faster than others.

"Modern loan servicing requires modern receivables," said Jason Schwabline, Chief Commercial Officer at CheckAlt. "Even as lenders modernize their servicing platforms, check payment workflows that support them often remain manual. Together with LoanPro, we're helping lenders expand their payment processing capabilities to reduce manual work, simplify reconciliation, and gain better visibility into payment activity."

The partnership highlights a broader issue in financial services technology: front-end digitisation does not always remove paper from the payments chain. Bill pay transactions initiated online can still be fulfilled by mailed cheques, leaving lenders to handle physical documents despite offering digital account services elsewhere.

Payments focus

CheckAlt operates in receivables and payment processing for financial institutions, fintechs and businesses, with services spanning lockbox processing, cheque handling, and card and ACH payments. For LoanPro customers, the immediate benefit appears to be the ability to route payment intake and reconciliation through a specialist provider while keeping servicing operations on the LoanPro platform.

Neither company disclosed financial terms of the arrangement. They also did not say whether the services would be adopted automatically across LoanPro's customer base or offered on an opt-in basis.

The announcement underlines the continuing role of hybrid payment infrastructure in lending, where the push for digital servicing must still account for customers and banking systems that generate paper instruments. More lenders may seek similar integrations as they try to reduce exceptions and manual handling in payment operations.